UK launches review of targets for sales of electric vehicles

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The UK government has announced a consultation on its zero-emission vehicle targets, following complaints from carmakers that the current government could cut jobs as demand for electric vehicles stalls.

Transport Secretary Heidi Alexander has given the automotive and charging industry eight weeks to submit their views Existing EV targets Including “how the existing arrangements and flexibility are working”.

The zero-emission vehicle mandate was created by the previous Conservative government at a time when EV sales were expected to take off.

Under current targets, a certain percentage of each carmaker’s annual sales are required to be zero-emission vehicles, with the percentage rising from 22 percent in 2024 to 80 percent in 2030. Companies face fines for missing the target of £15,000 each Vehicles below the required level.

Electric vehicles account It accounted for 18 per cent of the UK car market between January and November this year – below the 22 per cent threshold set by the mandate.

In November, Vauxhall is owned by Stellantis EV has blamed the rules for plans to close its van factory in Luton, putting around 1,100 jobs at risk.

Ford announces 800 job cuts in UK as EV sales expected to slow Nissan has warned that jobs at its Sunderland plant, Britain’s largest, could be at risk unless the government relaxes its electric car sales rules.

But the government has made it clear that the new consultation will not change the image of Title 2030.

Alexander said: “Over the past few years, our automotive industry has been stifled by a lack of certainty and direction. This government will change that.”

The consultation will be split into two parts: the first will consider which hybrid cars can be sold alongside zero-emission models between 2030 and 2035.

The FT previously reported that ministers are keen to allow carmakers to sell Prius-style hybrid models – which use an engine and battery in parallel – in the UK until 2035. Unlike “plug-in hybrids”, which have larger batteries, “full hybrids” don’t plug in to recharge. By contrast, the Tories are happy for petrol and diesel models to remain on sale.

The second part will consult on flexibility within the 2030 target, with officials understood to be open to several changes to the rules, including expanding the “trading” loophole that allows carmakers to buy credits from rivals to avoid penalties.

Another “borrowing” scheme under which manufacturers can miss initial targets but avoid penalties by promising to overachieve in future years will also be extended by a few years beyond its planned expiry in 2026.

Speaking to the Financial Times, Nicola Walker, Ford’s government affairs manager, said the company has called for the suspension of fines in 2025 for companies that miss targets. However, this involves primary law changes and is understood to be unlikely.

Business Secretary Jonathan Reynolds said: “We remain steadfast in our aim to help our world-leading automotive industry thrive and this consultation will look at how we can help manufacturers, investors and the wider industry reach their goals.”

The changes have been met with consternation by the charging point industry, which has warned that up to £6bn of investment could be at risk by 2030 if the rules are watered down enough.

Vicky Read, CEO of ChargeUK, said she hoped the consultation would bring “certainty” to the EV and charging sector after “a turbulent few months, during which the foundations of UK EV policy have been called into question”.

Reid called on the government to “hold its nerve” and maintain ambitious EV targets.

Mike Howes, chief executive of the Society of Motor Manufacturers and Traders, said: “The automotive industry welcomes the Government’s review of both the end date for the sale of petrol or diesel-only cars and possible changes to flexibility around zero-emission vehicles. command.”

He added: “We can get an urgent resolution, backed by bold incentives to stimulate demand, with a clear intention to adapt regulations to support delivery.”