The Financial Times reports that the United Kingdom will move up the timeline to 2030 for a ban on gas- and diesel-powered cars. This news could impact electric vehicle and internal combustion engine (ICE) auto manufacturers in a major way.
What Happened: An announcement is expected next week from the United Kingdom Prime Minister Boris Johnson on the ban of new ICE vehicles by 2030.
Electric vehicles made up for 12.1% market share of the U.K. new car sales in October, according to CleanTechnica. This grew from the 9.5% share reported in September and ahead of the 9.1% year-to-date share. The country is tracking to pass 10% market share for electric vehicles in 2020.
This move by the U.K. could have a huge impact on the automobile market with over 2.1 million cars sold in the country in 2019.
Potential Losers: The company impacted the most by the ban could be Ford Motor Company (NYSE:F). Ford had three of the top 10 selling cars in the U.K. in 2019 — with the Ford Fiesta topping the list. The Ford Fiesta also tops the 2020 list with over 34,000 units sold.
Vauxhall, a unit of Peugeot (OTC:PEUGF), has the second bestselling car in 2020 with the Vauxhall Corsa, which was among the top-five bestselling cars in the U.K. for 2019.
The Volkswagen Golf is the third bestselling car in the nation in 2020, which could be bad news for parent Volkswagen AG ADR (OTC:VWAGY).
Potential Winners: The increase in the sale of electric vehicles in the U.K. could be good news for the top players in the region.
Tesla Inc (NASDAQ:TSLA) ranks first in the U.K. with a 30% market share for the first half of 2020. The Tesla Model 3 is the top-selling electric car in the country, but saw fewer sales in October with no new shipments.
Nissan Motor Co (OTC:NSANY) is a company to watch. Its Nissan Leaf is the second bestselling EV in the U.K. with around 10% market share.
Tata Motors (NYSE:TTM), which owns the Jaguar brand, holds down the number three or four spot in market share depending on the month with its Jaguar I-Pace car. The car has a 7.8% market share in 2020.
Volkswagen also appears on the winners' list with its ID.3 newcomer EV expected to move its way into the top three selling electric cars for the country. CleanTechnica says the model could even fight for the number two spot on the list.
Other Regions Banning ICE: The U.K. is the latest region to move up its date and announce a ban on the new sale of ICE.
Quebec passed a similar ban with no new gas-powered cars allowed to be sold after 2035.
Quebec is the second most populous province in Canada. The province's move follows a similar action by British Columbia, which has banned the sale of new ICE after 2040.
Canadian Prime Minister Justin Trudeau has promised new measures to fight climate change with a focus on more affordable electric vehicles and more charging stations. The country is working to get to net zero emissions by 2050.
California announced plans to ban ICE after 2035. A Joe Biden presidency is expected to boost the call for electric vehicles and, once sworn in, the newly elected president could announce a target date.