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The UK government has announced a consultation on its zero-emission vehicle targets after carmakers complained that the current regime could lead to job losses as demand for electric vehicles stagnates.
Transport Minister Heidi Alexander has given the automotive and charging industry eight weeks to express their opinion the existing EV targets including how existing “arrangements and flexibilities” work.
The zero-emission vehicle mandate was drawn up by the previous Conservative government at a time when sales of electric vehicles were expected to surge.
Under current targets, a certain percentage of each automaker’s annual sales must be zero-emission vehicles, with the percentage increasing from 22 percent in 2024 to 80 percent in 2030. Companies face fines if they miss the target of £15,000 for each vehicle falling below the required level.
Electric vehicles billed for 18 percent of the UK car market between January and November this year – well below the 22 percent threshold set out in the mandate.
In November, Vauxhall owner Stellantis blamed EV rules for its plan to close its van factory in Luton, putting around 1,100 jobs at risk.
Ford also announced 800 job cuts in the UK as electric vehicle sales were slower than expected Nissan warned of job losses at its Sunderland factory. the largest in the UK, could be at risk if the government does not relax its electric vehicle sales rules.
However, the government has made it clear that the 2030 total will not change as a result of the new consultation.
Alexander said: “In recent years our automotive industry has been stifled by a lack of safety and direction. This government will change that.”
The consultation is divided into two parts: The first part examines which hybrid cars can be sold alongside zero-emission models between 2030 and 2035.
The FT previously reported that ministers were keen to allow car manufacturers to continue selling Prius-style hybrid models – which use a motor and battery in parallel – in the UK until 2035. Unlike “plug-in hybrids,” which have larger batteries, “full hybrids cannot be plugged in to charge. The Tories, on the other hand, are pleased that petrol and diesel models will remain on offer.
The second part will discuss flexibilities within the 2030 target, with officials said to be open to several changes within the rules, including expanding the “trading loophole” that allows carmakers to buy credits from rivals to avoid fines.
Another “credit program” in which manufacturers can miss early targets but avoid fines by pledging to exceed them in future years is also set to be extended for a few years beyond its scheduled expiry in 2026.
Speaking to the Financial Times, Nicola Walker, head of government affairs at Ford, said the company had called for a “moratorium” on fines for companies that missed their targets in 2025. However, this would require a change to primary law and is considered unlikely.
Business Secretary Jonathan Reynolds said: “We remain committed to our mission of helping our world-leading automotive industry thrive and this consultation will explore how we can support manufacturers, investors and the wider industry to achieve their goals.”
The changes have been met with dismay by the charging station industry, which has warned that up to £6bn of investment could be at risk by 2030 if the rules are significantly weakened.
ChargeUK CEO Vicky Read said she hoped the consultation would bring “certainty” to the electric vehicle and charging sector after “a destabilizing few months in which the fundamentals of the UK’s electric vehicle policy have been called into question”.
Read urged the government to “hold its nerve” and maintain ambitious EV targets.
Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, said: “The motor industry welcomes the government’s review of both the end of sales for cars that run solely on petrol or diesel and possible changes to flexibilities around zero-emission vehicles.” Mandate.”
He added: “It is imperative that we find an urgent solution, with a clear intention to adapt the regulation to support delivery, underpinned by bold incentives to stimulate demand.”
