The UK government is poised to modify regulations governing the electric vehicle (EV) market amid mounting pressure from manufacturers claiming current sales quotas are pushing the industry towards a breaking point. Transport Secretary Louise Haigh and Business Secretary Jonathan Reynolds are scheduled to meet with industry leaders this Wednesday as uncertainty looms over the future of Vauxhall’s manufacturing facilities.
Under existing regulations, car manufacturers must ensure 22% of car sales and 10% of van sales are EVs, facing penalties of £15,000 per vehicle falling short of these targets. Sources close to the matter indicate these quotas may be adjusted to alleviate industry pressures.
The government’s consideration extends to potentially reintroducing EV purchase subsidies for private owners, which were discontinued in 2022. While fleet vehicles continue to receive substantial grants, industry leaders have persistently advocated for private-use subsidies to stimulate market growth.
Stellantis, which owns Vauxhall, Peugeot, and Citroën, has initiated a strategic review of its operations at Ellesmere Port and Luton facilities, collectively employing 2,500 workers. Chief Executive Carlos Tavares highlighted that current EV sales thresholds approximately double the natural market demand.
The proposed reforms could include allowing manufacturers to count British-made cars sold abroad towards their EV targets and equalising the percentage requirements between cars and vans. Additional considerations involve crediting manufacturers for reducing carbon emissions in their production facilities.
Unite union’s General Secretary Sharon Graham has emphasised the importance of protecting jobs through mandate reform, indicating ongoing constructive discussions with government and industry stakeholders. While immediate changes to the UK’s electric vehicle sales regime may face parliamentary hurdles, government sources suggest reform is inevitable to maintain British manufacturing competitiveness.
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