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

26 November 2024, 10:25 | Updated: 26 November 2024, 10:26

Strict rules on electric car sales will be tweaked following backlash from manufacturers
Strict rules on electric car sales will be tweaked following backlash from manufacturers. Picture: Alamy
Natasha Clark

By Natasha Clark

Strict rules on electric car sales will be tweaked after a backlash from manufacturers, ministers will confirm today.

Listen to this article

Loading audio...

The Business Secretary will announce plans for companies to be given more flexibility around how many cars must be sold every year to meet clean eco-targets.

Jonathan Reynolds will tell industry bosses he will bring forward a fast-tracked consultation before Christmas over fears they can't sell enough.

Government rules brought in to try and boost demand for cleaner cars and slash emissions mean that 22 per cent of all new cars sold in the UK this year have to be electric.

And firms get fined £15,000 for every car they don't sell, or offset in other ways.

But the car industry has warned that it is on course to miss the target next year, where it will be hiked to 28 per cent of all sales.

Berlin, Germany. 20th Nov, 2024. A prototype of the Tesla Cybercab stands in a showroom in the Mall of Berlin. Credit: Hannes P. Albert/dpa/Alamy Live News
Berlin, Germany. 20th Nov, 2024. A prototype of the Tesla Cybercab stands in a showroom in the Mall of Berlin. Credit: Hannes P. Albert/dpa/Alamy Live News. Picture: Alamy

They say global demand for new EVs has slowed thanks to increased costs for manufacturers, and government grants being slashed.

LBC understands that ministers could relax the rules around selling more cars abroad, changing the definitions between cars and vans which have stricter rules, or allowing companies to kick back more of the sales into later years.

Read more: Ford to cut 800 jobs in UK due to low demand for electric cars.

Read more: Rebranded Jaguar sparks further backlash after teasing new car model akin to ‘Tesla Cybertruck’

They could also tweak the rules to allow them to sell more hybrids, rather than solely electric cars, or buy more credits from solely electric firms like TESLA.

Volvo recently adjusted its all-EV sales target for 2030, allowing for up to 10% of sales to come from plug-in hybrids.

Ministers may also look again at government grants, which were cut under the Tories, further dampening demand.

Some senior figures in the Department for Business want to reduce the 28% target for next year - but sources in the Department for Transport insist that's not on the cards.

Seat and cupra logos displayed on modern car dealership building
Seat and cupra logos displayed on modern car dealership building. Picture: Alamy

The Business Secretary will launch a fast tracked consultation before Christmas - and it's likely to be sped up to just four or six weeks to consult with industry.

But the government insists they won't be moving back the 2030 date where all new petrol and diesel cars will be banned.

Rishi Sunak kicked that back to 2035 - but this government are sticking firmly to the 2030 date.

More Latest News

See more More Latest News

The body of 23-year-old Martine Vik Magnussen was discovered in a basement in Great Portland Street, London, in 2008

On-the-run suspect urged to hand himself in 17 years on from murder and rape of student found dead in basement

Pint of Guinness in front of different ale and beer pumps, The Merchant's Arch Bar & Restaurant, Temple Bar, Dublin, Ireland

Guinness pint prices could soar to more than £6 due to Trump’s tariff war

Vladimir Putin must stop playing games with a ceasefire and come to the table, Sir Keir Starmer said, as he convenes world leaders to discuss peacekeeping in Ukraine

Starmer to host Ukraine peace summit - as he warns Putin to 'stop playing games' with ceasefire and come to table

Donald Trump speaks at the Justice Department

Trump insists peace talks with Russia are going 'really well' despite Putin being accused of 'delaying tactics'

The MV Stena Immaculate tanker after it was hit by the MV Solong container vessel in the North Sea

Captain of container ship Solong which crashed into US oil tanker charged with gross negligence manslaughter

Faiz Shah, 23, Mohammad Comrie, 23, and Elijah Ogunnubi-Sime

Three men jailed after Jewish-Israeli music producer lured to house, beaten and handcuffed to radiator in extortion plot

ITV Palooza 2022 – VIP Access

Working-class people are being 'left behind' in TV roles, claims presenter Lorraine Kelly

Mark Carney

'It's crazy': Mark Carney says Canada will 'never be 51st US state', as he is sworn in as PM after Trump threats

Mohamed Amersi hopes Reform UK and the Conservatives will merge into one party

Tory party donor calls for Reform UK and Conservatives to merge

David Hasselhoff's daughter Hayley (right) was heard screaming and crying outside her mother's home

David Hasselhoff's daughter Hayley breaks silence after mother Pamela Bach found dead aged 61

Vladimir Putin has been accused of "delaying" tactics

Putin accused of 'delaying tactics' over Ukraine truce deal, as Zelenskyy says Russia is 'sabotaging diplomacy'

Danny Jones

Danny Jones breaks silence over 'drunken kiss' with Maura Higgins

Brandon Williams

Former Manchester United star caught driving at almost 100mph with balloon in his mouth

Jockey Mark Walsh celebrates on Inothewayurthinkin after winning the Cheltenham Gold Cup

Inothewayurthinkin denies Galopin Des Champs a third Cheltenham Gold Cup

Rory McIlroy refuses to comment on fan who heckled him at Players Championship

Rory McIlroy responds over angry altercation that saw him take a fan's phone after being heckled

At least half of the Cabinet has called on the Chancellor to walk back planned reforms

Reeves insists ‘broken’ benefits system must be reformed despite fears of Cabinet revolt