UK EV sales targets may be softened after industry pressure

Key facts

• UK electric vehicle sales targets are under review.
• The government is considering loosening ambitious plans to phase out petrol and hybrid vehicles.
• Carmakers and dealerships have warned the current targets risk deterring investment.
• The government proposed reducing the 2030 EV sales target from 80% to 50%.
• Transport Secretary Heidi Alexander stated the review aims to ensure targets are practical and support British industry.

Electric vehicle sales targets for British carmakers are set to be reviewed, with the government considering watering down ambitious plans following pressure from manufacturers and dealerships. The government announced late Friday that it is seeking opinions on loosening the targets to phase out petrol and hybrid vehicles by 2035.

Under the current EV pathway, as many as 80% of car sales must be EVs by 2030. However, the government has proposed reducing this target to 50% after receiving warnings from the industry. Carmakers and dealerships have expressed concerns that the zero emissions vehicle (ZEV) mandate could deter investment and force them to sell vehicles at a loss.

Transport Secretary Heidi Alexander stated that the review is necessary to ensure targets are practical and support British industry, emphasizing that the end goal remains unchanged but that industry input is crucial. The Society of Motor Manufacturers and Traders (SMMT) had previously argued that the policy was "running ahead of market demand." Stellantis cited the mandate as a factor in its decision to close a van-making plant in Luton, with its boss warning that all UK production could cease without rule changes. Dealership groups, including Enterprise Mobility and Vertu Motors, issued a joint statement calling the review "urgently needed to restore confidence in the UK’s transition to electric vehicles."