The government has announced a relaxation of electric vehicle (EV) sales targets for UK car manufacturers to assist the industry following recent tariffs imposed by the United States. While the ban on producing new petrol and diesel cars remains set for 2030, manufacturers will now have greater flexibility regarding annual sales targets and face lower potential fines.
Transport Secretary Heidi Alexander stated that these changes are a part of the government’s response to the US tariffs. President Donald Trump recently implemented a 25% levy on car imports to the US, a significant export market for the UK automotive sector. This is in addition to a separate 10% tariff on nearly all UK products.
The government expedited the introduction of these adjusted targets following a consultation that concluded in mid-February. Officials stated they have collaborated with UK car manufacturers to “strengthen its commitment to the phase out” while implementing “practical reforms to support industry meet this ambition.”
Under the existing EV mandate, manufacturers face potential fines of £15,000 per car sold that does not meet the required emissions standards. Currently, 28% of new cars sold in the UK this year must be electric, with this target increasing annually until 2030. The new measures will allow manufacturers more flexibility to balance annual targets and potentially avoid fines by selling more EVs in later years of the mandate.
The transport ministry indicated that “support for the car industry will be kept under review as the impact of new tariffs become clear.”
Opposition parties have suggested that these measures may not be sufficient to adequately support the car industry. Prime Minister Sir Keir Starmer, writing in the Times, noted that the non-compliance fine will be reduced to £12,000, and support will be provided for EV purchasers through £2.3 billion in tax breaks and improved charging infrastructure.
The announced changes include:
- Relaxed mandates on car firms during the transition away from petrol and diesel vehicle production to help avoid fines.
- Allowing smaller UK firms like Aston Martin and McLaren to continue producing petrol cars beyond the 2030 deadline.
- Permitting some hybrid vehicles to remain on the market until 2035.
Jaguar Land Rover, a Coventry-based car manufacturer, announced a temporary pause on all shipments to the US in April to “address the new trading terms.” The US is the second-largest export market for the UK car industry, after the European Union.
Source: BBC News
Brian Worth
too little too late, scrap the fines and tell Milliband to look for a new job