UK launches review of electric vehicle sales targets.

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The UK government has announced it will hold a consultation on zero-emission vehicle targets following complaints from car manufacturers that demand for electric vehicles has stalled.

Transport Secretary Heidi Alexander has given the automotive and charging industries eight weeks to submit their proposals. Current EV targets Including current “programs and how flexibilities work”.

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

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

Electric vehicles It is counted 18 per cent of the UK car market between January and November this year – below the 22 per cent set by the order.

In November Stellantis, owner of Vaxhal It has blamed EV laws for plans to close its van factory in Luton, which will put around 1,100 jobs at risk.

Ford has announced 800 job cuts in the UK due to slower-than-expected EV sales. Nissan warned they would be working at its Sunderland factory. Britain’s largest, electric vehicle sales could be at risk unless the government eases regulations.

However, the government has made it clear that the 2030 headline figure will not change in the new consultation.

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

The consultation is divided into two parts: the first examines which hybrid cars could be included when sold alongside zero-emission models between 2030 and 2035.

The FT previously reported that ministers want to allow carmakers to continue selling Prius-style hybrid models – which use a parallel motor and battery – in the UK until 2035. Unlike “plug-in hybrids” with larger batteries, “full hybrids” don’t plug in to charge. In contrast, the Tories are happy to keep petrol and diesel models on sale.

The second part consults on the changes in the 2030 target, the authorities understand that they are open to several changes in the rules, which will allow car manufacturers to buy credits from their competitors to avoid penalties, expanding the “trade” gap.

Another “borrowing” plan, under which producers can miss early targets but avoid penalties by promising to outperform in subsequent years, is set to be extended a few years beyond its 2026 deadline.

Nicola Walker, Ford’s government affairs manager, told the Financial Times that the company had It has called for a “freeze” on penalties for companies that miss targets by 2025. However, this first step involves changing the law and he recognizes that is unlikely.

Business Secretary Jonathan Reynolds said: “We remain committed to the growth of our world-leading automotive industry, and this consultation looks at how we can support manufacturers, investors and the wider industry to achieve their targets.

The changes have been alarmed by the charging point industry, which has warned that up to £6bn of investment could be at risk by 2030 if the rules are not properly implemented.

Vicky Read, chief executive of Charge UK, said she hoped the consultation would bring “certainty” to the EV and charging sectors “after months of uncertainty where the foundations of UK EV policy have been called into question”.

Read urged the government to “hold its nerve” and maintain ambitious EV targets.

Mike House, chief executive of the Association of Motor Manufacturers and Traders, said: “The automotive industry welcomes the government’s review of the end of the sale of petrol or diesel-only cars and the flexibility around zero-emission vehicles. order”

He added: “It is imperative that we find an urgent solution with a clear objective to adapt the regulation to support, supporting bold incentives to stimulate demand.”