Car makers pledge to work with Government to identify ‘adjustments’ to EV rules

The automotive industry has pledged to work with the Government to “identify any adjustments necessary” to sales quotas for electric vehicles (EVs).

Car makers outlined the “negative effect” of the zero-emission vehicles (Zev) mandate in a meeting with Transport Secretary Louise Haigh and Business Secretary Jonathan Reynolds on Wednesday.

Under the mandate, at least 22% of new cars sold by each manufacturer in the UK this year must be zero-emission, which generally means pure electric.

The threshold will rise annually.

Failure to abide by the rule or make use of flexibilities – such as buying credits from rival companies or making more sales in future years – will result in a requirement to pay the Government £15,000 per polluting car sold above the limits.

Under the current rules, the mandate will reach 80% by 2030, but the Government has committed to bring the ban on the sale of new petrol and diesel cars and vans forward from 2035 to 2030.

The Government said it will set out further details in due course.

There are fears the Zev mandate is putting jobs at risk at UK vehicle factories.

Incentives are in place for fleet purchases of EVs, but manufacturers want subsidies for private buyers to be reinstated.

Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders (SMMT), said the meeting with ministers was “an important opportunity to restate the UK automotive industry’s commitment to both economic growth and net zero.”

He went on: “The industry also made clear its concerns about the pace of the EV transition and the negative effect this is having on the health of the overall market and the attractiveness of the UK as a manufacturing location.

“A strong market and manufacturing base that sustains jobs and drives growth requires workable regulation backed by support for consumers – fiscal incentives and confidence that the charging network will be there when it is needed.

“We will now work urgently with Government to identify any adjustments necessary to help the industry and Government meet their targets, instilling confidence in the consumer and other stakeholders, all of whom are part of this transition.”

A Government spokesperson said: “Ministers from across Government have met with automotive sector and industry representatives to discuss the transition to electric vehicles, and how the Government can support continued growth of the sector.

“Recognising the global challenges the industry has been facing, ministers underlined the Government’s commitment to working constructively and in close partnership with the sector as we support the transition to electric vehicles by 2030.

“The UK automotive sector now has the fastest growth of zero-emission vehicles of any major European market, and we’re providing more than £2.3 billion to support industry and consumers in making the switch, with 57 new public electric vehicle chargers added on average each day.”

The meeting was held hours after Ford announced it will cut about 800 roles across the UK over the next three years as part of a wider European jobs cull amid pressure from “lower-than-expected demand” for its electric cars.

SMMT figures show registrations of fully electric new cars across the UK rose by 14.2% during the first 10 months of the year compared with the same period in 2023, with a growth in market share from 16.3% to 18.1%.

Vicky Read, chief executive of ChargeUK, which represents the UK’s EV charger industry, said: “The charging industry is a UK growth story, we are delivering the vital infrastructure necessary for the EV transition at pace and scale.

“We will study the forthcoming consultation closely and continue to make the case to retain what we already have – a strong Zev mandate that works.”

Fiona Howarth, chief executive of EV leasing company Octopus Electric Vehicles, said: “The Zev mandate is doing what it was intended to do, and tampering with it risks undermining investment in a massive growth industry.

“Demand for EVs is rising, not just in the UK but globally.”