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Jim Ratcliffe delays launch of electric SUV
Ineos cites weak demand for EVs as it puts car on hold
![Sir Jim Ratcliffe](/https/www.telegraph.co.uk/content/dam/business/2024/07/03/TELEMMGLPICT000376838904_17200042241830_trans_NvBQzQNjv4BqA7N2CxnJWnYI3tCbVBgu9T0aesusvN1TE7a0ddd_esI.jpeg?imwidth=680)
Sir Jim Ratcliffe’s car company has delayed production of its electric SUV, blaming a lack of consumer demand and tougher net zero rules expected to come into force under a Labour government.
Less than five months after unveiling the Fusilier, Ineos Automotive has said it will hold off from launching the SUV because of a “lack of long-term clarity” from policymakers.
The vehicle had been expected to take advantage of a so-called range extender – a small petrol-fuelled combustion engine that would have been able to top up the charge of the battery.
But the company expects this to fall foul of bans on the sale of new petrol cars coming into force across Europe in 2035, with Sir Keir Starmer’s Labour Party vowing to bring the UK’s ban forward by five years to 2030 if it wins power.
Ineos has not revealed a new timeline for when it will launch the Fusilier, as first reported by Bloomberg. The vehicle had been slated for release in 2027.
Sir Jim, the petrochemicals tycoon who also co-owns Manchester United football club, first outlined plans for the electric SUV in February.
Envisioned as an electrified version of Ineos Automotive’s Grenadier, buyers of the Fusilier would have had the option of an all-electric version or a hybrid model with a small petrol engine.
The battery-only version was planned to have a range of at least 400km (248 miles), according to Ineos, while the range-extender version would feature a battery range of around 270km, supplemented by the petrol motor.
At the launch in February, Sir Jim argued the range extender option would assuage fears of “range anxiety”.
However, this week the company told Bloomberg in an email: “We are delaying the launch of the Ineos Fusilier for two reasons: reluctant consumer uptake of EVs, and industry uncertainty around tariffs, timings and taxation.”
It also said that “there needs to be long-term clarity from policymakers” to meet net zero targets.
The decision comes amid warnings that Labour’s plan to bring forward the petrol car ban to 2030 risks hurting Britain’s car industry.
Vauxhall owner Stellantis last week threatened to close its UK factories amid concerns that existing net zero rules – which already require 22pc of car makers’ sales to be electric – were too far ahead of consumer demand.
Electric vehicles only managed to capture a 16pc market share in the first five months of 2024, according to the Society of Motor Manufacturers and Traders (SMMT).
Labour insists it is “reverting to a target long planned for by manufacturers”.
Last week a spokesman for the party said: “Electric vehicles are already cheaper to run, and will soon be cheaper to make than petrol cars.
“More delay means higher costs for drivers, billions in investment lost, and more good jobs shipped overseas.”
An Ineos spokesman said: “We are committed to bringing an EV to market not just because of legislation but because we want to – it is the right thing to do – but as a new small-volume manufacturer we can only produce vehicles that will sell.
“The Fusilier is an electric vehicle, but also provides the option of a range extender that uses a small low emission petrol engine to charge the electric battery when external charging isn’t available.
“This low-emission solution for longer journeys or where charging is not possible would still be banned in both Europe and the UK in 2035, if not earlier in the UK should Labour be elected into Government this week.”