Published on February 27th, 2023 | by Sounder Rajen

Could The EU’s 2035 Ban Exemption Signal The Death Of Kit Cars?

EU’s 2035 ban exemption gives small UK sports carmakers a lifeline

So by now we all know that by 2035, most of the European Union (EU) will “outlaw” sales of new internal combustion engine (ICE) vehicles, or petrol vehicles, and only allow the sales of brand new electric vehicles (EVs). However, a small exemption in the UK may see some companies still sell ICE vehicles after 2035.

The UK’s low-volume sports car industry has been given a lifeline as lawmakers confirmed they may continue to sell ICE cars in the European Union after the 2035 ban. This comes after it was confirmed that manufacturers building fewer than 1,000 vehicles per year will be exempt from the ban on new ICE cars.

Moreover, the new EU rules which were officially passed on 14 February 2023, effectively ban the sales of new ICE cars and commercial vehicles from 2035 by requiring a 100% reduction in CO2 emissions from new vehicles sold in the market, but there is a small loophole in this new rule.

What is this loophole? Manufacturers that register fewer than 1,000 cars annually will be exempt from the ban. This means that some of the UK’s celebrated niche brands such as BAC, Ginetta and Morgan, among others, will be able to continue exporting their most popular models to the EU market.

What’s more, these rules won’t cover the UK, due to the country’s departure from the EU through Brexit and not only is the EU exemption an important lifeline for the UK’s low-volume manufacturers, many of which don’t have supply of electric motors from large manufacturers or the budget to produce their own

According to Neil Briggs, co-founder of BAC, in addition to the above, the exemptions for low-volume carmakers in the UK and EU are also an opportunity to these low volume carmakers. He added, “I think the (UK) government has been extremely pragmatic in its approach. They’ve listened.”

On top of that, Amy Tomlinson, managing director of Ginetta, said, “Although Ginetta’s current focus within the EU is primarily on track-only racing cars, we know that a healthy appetite for low-volume British sports cars already exists in Europe and wouldn’t be surprised to see it grow following this announcement.”

“With these regulations setting a limit of 1000 cars per manufacturer, it wouldn’t be a surprise to see the number of companies within the sector growing in years to come.” Tomlinson Added.

Briggs concluded by saying, “50% of global emissions is down to the manufacturing of things. The less you manufacture, the less the global emissions will be, whether that’s concrete for buildings or parts for vehicles.”