Parry-Jones added: “I share your view. The only way they will be allowed to continue is with assurances, using technology and regulation, that they’re actually used as plug-in hybrids, not as tax-beaters.
“The government is naturally a bit sceptical. The only way we, as an industry, will win over the sceptics is providing a level of automation to either compel or heavily incentivise the consumer to make sure they exploit the advantages of a plug-in hybrid.”
What does this mean for the residual values of ICE cars as we go towards 2030?
Jones said: “I think it will be a bit more chaotic. But that’s why we need the certainty of what the taxation will be for low-emission vehicles, to say that ‘okay, this is the landscape of what can happen for the total [40 million vehicle] car parc’. We must retain the residual value of that car parc, because not everybody is going to want to switch or be able to switch to electric. We need a clear plan to provide the certainty of those residual values and how they will move.”
Parry-Jones said: “I can speculate [on residual values], but we haven’t talked about city air quality much yet. The interest and enthusiasm of the government to speed up the adoption of electric cars is driven by the two forces: CO2 [emissions] and city air quality.
“Personally, I think that the residual values of diesel and petrol cars will depend much more on air quality than it will on CO2 contribution. The best way to secure the value of the vehicles going forward is to make damn sure the real-world air quality emissions of the ICE engines meet the goals of city leaders.
“As such, I think we will see a difference in demand for ICE engines in cities versus rural areas. Things like taxation and congestion charging will disincentivise people from buying those cars in cities, but in rural areas, where air quality concerns are very much lower, the demand will be quite high. I can see a regional separation going forward.”
What does the infrastructure timeline look like?
Although both Jones and Parry-Jones agree that more needs to be done, the two feel it falls to different organisations to upgrade the UK’s infrastructure.