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The UK government considers flexibility to help car manufacturers achieve their EV targets.

The UK government considers flexibility to help car manufacturers achieve their EV targets.

 


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UK Transport Secretary Louise Haigh insisted the government would not relax its electric vehicle targets, but acknowledged ministers could create new flexibility to help manufacturers meet their targets.

The Financial Times said on Saturday that Japanese carmaker Nissan is ready to warn ministers that the UK car industry has reached crisis point and that jobs and investment are at risk unless the government eases EV rules.

Under the government's electric vehicle mandate, a certain proportion of new cars sold in the UK must be EVs, with that proportion gradually increasing each year until 2035, when all sales must be electric.

Companies that fail to meet these goals will be subject to a punitive fine of $15,000 per vehicle.

Electric vehicles accounted for 18% of UK new car sales in the first 10 months of this year, below the 22% required for 2024.

Haigh said he was listening to the challenges facing the manufacturer before attending a bilateral meeting with Nissan on Monday and a wider roundtable with the auto industry on Wednesday.

There is flexibility in the current mandate but we want to work with the manufacturing sector to see if this will work and if it can be addressed, she told LBC radio. But our level of ambition and authority will not be weakened.

Flexibility in the current mandate includes allowing struggling manufacturers to purchase credits from competitors who have exceeded their targets.

Next year the target will rise to 28%, which automakers warn is too high to lead to credit at a time when consumer demand is falling.

Government officials told the Sunday Times that all options were on the table to help British car manufacturers achieve their targets. A government official told the FT that ministers were clearly aware of the situation. Manufacturers have been honest about how worried they are.

Proposals to make it easier for businesses to meet their EV obligations include including British-made cars sold overseas in EV sales targets. Another way is to equalize the percentage difference between cars and vans in your destination.

Meanwhile, Jaguar Land Rover has offered to give manufacturers credit for sales targets if they can prove they have reduced carbon emissions at their plants.

The Department of Transportation did not rule out any of those options Sunday, and officials said it was too early to stipulate details. Another government official said, “No decision has been made yet.”

One industry source said the move to include overseas sales in electric vehicle targets would be positive and it was welcome that the option was being considered.

Nissan is one of the UK's largest car companies, employing more than 6,000 people at its Sunderland plant. The Sunderland plant will support an additional 30,000 jobs across the supply chain and represents a $6 billion investment by the company.

Prime Minister Rachel Reeves confirmed in her latest budget that the government would ban the sale of new diesel and petrol vehicles from 2030. However, a small number of hybrids will be allowed to be sold until 2035.

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