Jaguar Land Rover Warns UK EV Targets Risk Critical Investment

Jaguar Land Rover (JLR) has issued a stark warning that the current zero-emission vehicle (ZEV) mandate could significantly impact investment in the UK automotive industry. The carmaker, which employs 34,000 workers domestically and has pledged £18 billion towards electric vehicle production at its Solihull and Halewood sites, is urging the government to reassess the aggressive targets set for electric vehicle sales.

Adrian Mardell, JLR’s Chief Executive, highlighted the issue in a series of correspondences with the British government. He pointed out that consumer demand for electric vehicles remains far below what is required under the ZEV mandate. With the current quotas described as a “significant problem,” Mardell warned the automotive sector is already feeling the negative effects.

The ZEV mandate, initially introduced under Boris Johnson’s administration, stipulates that by 2025, 28 per cent of a carmaker’s sales must comprise electric vehicles. This requirement ramps up to 80 per cent by 2030, eventually reaching 100 per cent in 2035. Companies that fail to hit these targets face potential fines of up to £15,000 per vehicle below the required level. While exceptions are available, such as reducing total fleet emissions through hybrid technology or purchasing carbon credits, JLR fears these measures are insufficient for the current market climate.

Labour’s announcement to revert to the 2030 ban on new petrol and diesel vehicle sales, after the Conservative government pushed the deadline back to 2035, has added further concern. Mardell stated that while JLR remains “absolutely committed to an electric future,” UK regulations need to reflect realistic market conditions to avoid disincentivising investment and triggering job cuts. Consumer adoption of electric vehicles is not advancing at the pace initially envisioned when these mandates were created.

The current state of EV sales underscores this issue. In 2024, electric vehicles represented only 19.6 per cent of all new cars sold in the UK, missing the mandate’s target of 22 per cent. Major manufacturers have already faced significant setbacks. Stellantis, for example, cited the mandate as a contributing factor to the closure of its Luton Vauxhall plant, which cost 1,100 jobs, while Ford has cut 800 UK-based roles.

JLR is advocating for regulatory modifications and enhanced collaboration between the government and industry. It also emphasised the importance of bolstering consumer incentives and advancing charging infrastructure to foster demand for electric vehicles. Current proposals to review the ZEV mandate are seen as a necessary step toward creating a more sustainable balance between environmental objectives and economic reality. Government sources have hinted that some quotas may be relaxed following a consultation period, but the exact outcomes remain unclear.

Despite the challenges, JLR expressed a willingness to work closely with ministers to ensure the success of the 2030 target while protecting jobs and securing the future of UK manufacturing. Industry leaders hope that both immediate and long-term measures will result in a framework that fosters growth while enabling the transition to sustainable transport.