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The UK government has announced a consultation on its zero emission vehicle rules, following complaints from carmakers that electric vehicle sales were not rising fast enough to hit targets.
Transport secretary Heidi Alexander has given the automotive and charging industries eight weeks to submit their views on the existing EV rules, including how existing “arrangements and flexibilities are working”.
The consultation will consider which hybrid cars can be sold alongside zero emission models between 2030 and 2035, as well as expanding a scheme where carmakers can buy credits from rivals to meet EV sales targets.
The government will also consider whether manufacturers can count electric van sales towards their car sale targets, and may extend a scheme set to expire in 2026 where they can avoid fines for early misses on targets by selling more later.
Under the current targets, a certain percentage of each carmakers’ annual sales need to be zero emission vehicles, with the percentage rising from 22 per cent in 2024 to 80 per cent in 2030. No new petrol and diesel vehicles can be sold after 2030. Companies face fines for missing the target of £15,000 for each vehicle below the required level.
Electric vehicles accounted for 18 per cent of the UK car market between January and November this year — up from 16 per cent over the same period in 2023, but below the 22 per cent threshold set by the mandate.
Ministers will also consult on whether further incentives are needed to help stimulate growth in the electric vehicle market — addressing complaints from car manufacturers that sales have not grown at the required rate to comply with targets.
Business secretary Jonathan Reynolds said: “We are steadfast in our mission to help our world-leading automotive industry thrive, and this consultation will look at how we can support manufacturers, investors and the wider industry to reach their targets.”
In November, Vauxhall owner Stellantis blamed EV rules for its plan to shut its van factory in Luton, putting about 1,100 jobs at risk.
Ford has also announced 800 jobs cuts in the UK because of slower-than-expected EV sales, while Nissan warned that jobs at its Sunderland plant, the largest in Britain, could be at risk unless the government relaxed its electric vehicle sales rules.
Nicola Walker, government affairs manager at Ford, said the company had called for a “moratorium” on fines in 2025 for companies that missed targets. However, this would involve changing primary legislation and is not included as an option in the consultation.
The government has also been clear that the headline 2030 figure will not be altered by the new consultation.
But the proposed changes have been met with consternation by the charging point industry, which has warned that up to £6bn of investment up to 2030 could be at risk if rules are substantially watered down.
Vicky Read, CEO of ChargeUK, said she hoped that the consultation would bring “certainty” to the EV and charging sectors after a “destabilising few months, during which the foundations of the UK’s EV 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 automotive industry welcomes the government’s review of both the end of sale date for cars powered solely by petrol or diesel, and possible changes to the flexibilities around the zero emission vehicle mandate.”
He added: “It is imperative we get an urgent resolution, with a clear intent to adapt the regulation to support delivery, backed by bold incentives to stimulate demand.”