The United Kingdom’s government is preparing to modify its electric vehicle (EV) regulations as sales struggle to meet expectations. Business Secretary Jonathan Reynolds is launching a swift consultation next week to address growing concerns from automotive manufacturers regarding the current zero-emission vehicle mandate.
The existing mandate requires carmakers to achieve 80 per cent zero-emission vehicle sales by 2030, with progressive annual targets and substantial penalties for non-compliance. Major manufacturers, including Volkswagen and Nissan, have voiced serious concerns about the misalignment between production requirements and consumer demand.
The impact of these regulations has already manifested in significant industry decisions. Stellantis cited the mandate as a primary reason for closing its Luton van factory, placing 1,100 jobs at risk. Similarly, Ford referenced the scheme whilst announcing 800 job cuts across Europe.
Current EV sales statistics reveal a concerning gap, with only 18.7 per cent of new car sales being electric vehicles up to November, falling short of the 22 per cent target for 2024. The scheduled increases in targets – rising to 28 per cent next year and reaching 80 per cent by 2030 – have intensified industry apprehension.
The government’s proposed modifications include equalising car and van quotas within the mandate, allowing British-made vehicles sold abroad to count towards targets, and extending the hybrid vehicle sales window until 2035. Ministers are also considering adjustments to the £15,000 per car penalty for missed targets.
Consumer reluctance remains the core challenge, with charging infrastructure being a significant barrier. The National Audit Office reports that while the UK aims for 300,000 public charging points by 2030, rural areas currently host only 15 per cent of England’s charging network. The government’s response includes plans for increased funding for charging points, though grid infrastructure delays continue to impede progress.
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