Ineos Automotive Postpones Electric SUV Launch Amid Regulatory Uncertainty and Low Demand

Sir Jim Ratcliffe's Ineos Automotive has postponed the production of its electric SUV, the Fusilier, citing a lack of consumer demand and impending net zero regulations, particularly under a potential Labour government. The delay is attributed to uncertainty regarding the UK's petrol car ban, which might be accelerated to 2030 from 2035. The Fusilier was originally scheduled for release in 2027 and was to feature a range extender using a small petrol engine, but this could now be affected by the ban. The new launch timeline is undisclosed.

Introduction:

In a surprising turn of events, Sir Jim Ratcliffe's Ineos Automotive has postponed the production of its electric SUV, the Fusilier. The delay was attributed to a lack of consumer demand and impending net zero regulations, particularly under a potential Labour government [1]. Originally scheduled for release in 2027, the Fusilier was designed to feature a range extender using a small petrol engine. However, the uncertainty surrounding the UK's petrol car ban and its potential acceleration to 2030 could significantly impact the vehicle's launch timeline.

Consumer Demand and Range Anxiety:

According to Sir Jim Ratcliffe, consumer demand for electric vehicles (EVs) has "dried up" due to concerns over range anxiety – the fear of running out of battery and being unable to charge [1]. The tycoon argues that EVs are suitable for short local journeys but fall short when it comes to longer distances [1]. This sentiment echoes recent criticisms of the UK government's net zero stance from major carmakers like Ford and the owner of Vauxhall [1].

Net Zero Regulations and the UK's Petrol Car Ban:

The potential acceleration of the UK's petrol car ban to 2030 under a Labour government adds to the uncertainty surrounding the Fusilier's production [1]. Ineos Automotive's preparation to launch an EV with a range-extender indicates that the company is aware of the demand for hybrid solutions during the transitional phase towards zero emissions [1]. However, the UK government's stance on EVs and the potential impact on the automotive industry's evolution remain uncertain.

Impact on Ineos Automotive and the UK Car Market:

Ineos Automotive, founded in 2018, represents less than 0.1pc of UK car sales, making it comparable in size to Maserati [1]. Sir Jim Ratcliffe's intervention is the most direct challenge to the UK's 2035 ban on new petrol car sales by a manufacturer [1]. His call for a transition period between fossil fuels and green fuels, with hybrids and electric vehicles with range extenders as interim solutions, highlights the need for a balanced approach to the energy transition in the automotive sector [1].

Conclusion:

As the automotive industry navigates the transition towards a low-carbon future, the case of Ineos Automotive's delayed production of the Fusilier serves as a reminder of the importance of balancing consumer demand, technological innovation, and regulatory frameworks. With the potential for uncertainty surrounding net zero regulations and consumer preferences, automakers and governments alike must work together to foster a sustainable and adaptive approach to the energy transition.

[1] + web links.