Key facts
- UK Prime Minister Keir Starmer plans to reduce the 2030 electric vehicle sales target from 80% to 50%.
- The change aims to address concerns from the automotive industry and unions about job security and investment.
- Hybrid vehicles will be permitted to constitute a larger share of sales under the revised targets.
- The 2030 ban on new petrol and diesel car sales remains in place.
- Industry groups and investors have expressed concern that the move could harm charging infrastructure investment.
Prime Minister Keir Starmer is poised to significantly lower the UK's 2030 electric vehicle (EV) sales targets, a move that overrides Energy Secretary Ed Miliband's net-zero agenda. The government plans to consult on revised targets, reducing the requirement for pure electric cars from 80% to 50% of sales by the end of the decade, allowing a greater proportion of hybrid vehicles.
This decision comes after intense lobbying from the automotive industry and unions, who warned that the original targets could lead to manufacturers withdrawing investment and significant job losses. Sharon Graham, General Secretary of the Unite union, described the potential change as a 'huge victory' for car workers, emphasizing the sector's importance to UK manufacturing.
Car manufacturers have also expressed concerns about the financial penalties associated with the Zero Emission Vehicle (ZEV) mandate, which can impose fines of up to £11,000 per vehicle for failing to meet quotas. The current ZEV mandate, introduced by the Conservative government in 2023, has already seen adjustments by the Labour government, including allowing prolonged sales of plug-in hybrids.
However, the proposed reduction has drawn criticism from EV charging companies and investors. James Alexander, CEO of the UK Sustainable Investment and Finance Association, warned that watering down the targets could signal a lack of long-term government commitment to electrification, potentially impacting investment in charging infrastructure. Vicky Read, CEO of ChargeUK, cautioned that the move could 'slam the brakes on infrastructure rollout' and disrupt the entire transition.