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

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

By Natasha Clark

@NatashaC

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

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.

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.

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.