Sales of hybrid petrol and diesel cars could extend beyond 2030 in blow to Labour's manifesto pledge

28 November 2024, 09:06 | Updated: 28 November 2024, 09:29

By Natasha Clark

@NatashaC

Drivers could be allowed to buy some hybrid petrol and diesel cars after 2030 - as ministers look to delay more electric vehicle rules.

Labour promised in its election manifesto to ban polluting cars with internal combustion engines from 2030.

But certain models may stay on the market for another five years as part of the watering down of strict eco-targets.

Rishi Sunak pushed back the deadline to 2035 - the date many other European countries have landed on - but Labour vowed to go faster in a bid to go green.

Earlier this week ministers confirmed they would review and consult on changing the rules which dictate how many electric cars have to be sold every year, amid warnings from the industry.

And Vauxhall's owner, Stellantis, warned 1,100 jobs could go at its Luton plant, partly blaming the EV targets.

Car firms say demand has weakened and they fear being unable to meet the targets this year.

Read more: Electric vehicle plans aren't working, minister admits, after Vauxhall owner says it will close van factory

Read more: Strict rules on electric car sales will be tweaked following backlash from manufacturers

Of the idea of selling some hybrids after 2030, one government source told LBC: "That would be our preference. There is going to be a need for us to take some political risks to make this work."

Another said: "We want to provide the certainty to businesses, but we will also listen to concerns in the sector."

At PMQs on Wednesday, the Tory leader Kemi Badenoch asked the PM if he would stick by the 2030 deadline.

But the PM pointedly dodged the question, only saying: "The EV mandates which are an issue were actually introduced by the last government.

"I would also remind her that she was the business secretary that introduced them."

Later on, the Business Secretary Jonathan Reynolds told MPs: "We will shortly be fast tracking a consultation on our manifesto commitment to end the sales of purely petrol and diesel cars by 2030.

"But we will use that consultation to engage with industry on the previous government's ZEM transition mandate and the flexibilities contained within it, and welcome their feedback as we move forward."

Yesterday Downing Street insisted the PM is committed to Labour's manifesto, but added that they were "alive to global challenges".

LBC understands one option is for the target of 22 per cent of electric cars to be sold this year, to be frozen.

It's due to rise to 28 per cent next year, but ministers are keen to provide "breathing space" for firms until new models hit the market.

And they could slash the £15,000 fine per car that they would be forced to pay if they don't meet the targets.

One source said: "We don't want to take anything off the table, and are keen to hear from all firms about what would best help."

Read more: Vauxhall to close Luton factory putting 1,100 jobs at risk

Ministers also want to boost finance deals and look again at grants to help more Brits to buy electric cars on zero-interest loans in a bid to boost demand.

It comes as fresh figures show the number of cars produced in Britain has fallen for the eighth month in a row.

The Society for Motor Manufacturers and Traders showed factories made 15.3% fewer cars in October this year than the year before - down to 670,346 cars.

Around one in three cars made in October were electric or hybrids.

Mike Hawes, SMMT chief executive, said: "These are deeply concerning times for the automotive industry, with massive investments in plants and new zero emission products under intense pressure.

"Slowdowns in the global market - especially for EVs (electric vehicles) - are impacting production output, with the situation in the UK particularly acute given we have arguably the toughest targets and most accelerated timeline but without the consumer incentives necessary to drive demand.

"The cost of stimulating that demand and complying with those targets is huge and, as we are seeing, unsustainable.

"Urgent action is therefore needed and we will work with Government on its rapid review of the regulation and the development of an ambitious and comprehensive industrial strategy to assure our competitiveness."