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The UK government has announced a consultation on zero-emission car targets, following complaints from car manufacturers that the current government could lead to job cuts as demand for electric cars fades.
Transport Secretary Heidi Alexander has given the car and charging industries eight weeks to submit their comments EV targets available including how “arrangements and variables” work.
The mandate for zero-emission vehicles was introduced by the previous Conservative government at a time when EV sales were expected to take off.
Under the current target, a certain percentage of automakers' annual sales must be emissions vehicles, with the percentage rising from 22 percent by 2024 to 80 percent by 2030. substandard vehicle.
Electric vehicles are counted 18 percent of the UK car market between January and November this year – less than the 22 percent set by the order.
In November, Vauxhall owner Stellantis blames EV regulations for its plan to close a van factory in Luton, putting around 1,100 jobs at risk.
Ford also announced 800 job cuts in the UK due to slower than expected EV sales, while. Nissan has warned that jobs at its Sunderland plant, Britain's largest, could be at risk unless the government loosens regulations on the sale of electric vehicles.
But the government has made it clear that the 2030 agenda will not be changed by the new consultation.
Alexander said: “Over the past few years, our automotive industry has been plagued by uncertainty and direction. This government will change that.”
The consultation will be divided into two parts: the first will consider which hybrid cars can be included as sold alongside zero-emission models between 2030 and 2035.
The FT previously reported that ministers were keen to allow carmakers to continue selling Prius-style hybrid models – which use the same engine and battery – in the UK until 2035. Unlike “plug-in hybrids”, which have large batteries, “full hybrids” do not plug in to recharge. In contrast, the Tories are happy that petrol and diesel models remain on sale.
The second part will discuss the flexibility within the 2030 target, and officials are understood to be open to many changes within the rules, including expanding the “trade” loophole that allows motorists to buy credits from opponents to avoid payments.
Another “borrowing” scheme in which producers can miss early targets but avoid penalties by committing to higher yields in future years is also set to be extended by a few years from its planned expiry in 2026.
Speaking to the Financial Times, Nicola Walker, head of government affairs at Ford, said the company had called for a “suspension” in 2025 payments to companies that missed the targets. However, this would involve changing the main law and is understood to be impossible.
Business Secretary Jonathan Reynolds said: “We are committed to helping our world-leading car industry succeed, and this consultation will look at how we can support manufacturers, investors and the wider industry to achieve their goals.”
The changes have been met with disruption to the charging point industry, which has warned up to £6bn of investment up to 2030 could be at risk if regulations are relaxed too much.
Vicky Read, CEO of ChargeUK, said she hoped the consultation would bring “certainty” to the EV and charging sectors after “a turbulent few months, where the foundations of UK EV policy have been called into question”.
Read urged the government to “seize its energy” and maintain ambitious EV targets.
Mike Hawes, chief executive of the Association of Motor Manufacturers and Traders, said: “The motor industry welcomes the government's review of the end date for the sale of cars powered only by petrol or diesel, and the potential changes to the revolution around the zero-emission vehicle. authorization.”
He added: “It is important that we find an urgent solution, with a clear objective to adjust the policy to provide support, supported by bold incentives to stimulate demand.”