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UK government to water down electric car sales target amid industry pressure

UK government to reduce 2030 EV target from 80% to as low as 50% amid industry concerns over costs and jobs.

Business

UK government to water down electric car sales target amid industry pressure

The UK government is set to weaken its target for electric vehicle (EV) sales, bowing to years of lobbying from car makers and trade unions who warn of soaring costs and job losses. Under current rules, 80% of all new cars sold must be EVs by 2030, but that figure is now being reconsidered. A consultation will decide the new goal, with numbers ranging from 50% to 70% under consideration, the BBC understands. The decision could take months.

The policy shift marks the latest twist in a decade of chopping and changing. Boris Johnson first announced a ban on new petrol and diesel cars by 2030 in 2020. Rishi Sunak pushed that ban back to 2035 and introduced the Zero Emission Vehicles (ZEV) mandate, which set yearly incremental targets — 28% for 2025, 33% for 2026, and so on up to 80% by 2030. Labour has pledged to restore the 2030 ban, but is now stepping back from the mandate targets.

UK government to reduce 2030 EV target from 80% to as low as 50% amid industry concerns over costs and jobs.

Car makers have struggled to meet the quotas. To shift EVs, many have resorted to discounts, costing the industry more than £10bn over the past two years, according to the Society of Motor Manufacturers and Traders (SMMT). Companies that fail to hit the ZEV mandate face a fine of £15,000 per car, or can buy credits from rivals who have sold more EVs than required. There are no plans to change that penalty element, the BBC understands.

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The SMMT warned that unless the mandate is urgently relaxed, “the cost will be in jobs, investments and the viability of some businesses”. Unite union general secretary Sharon Graham called failure to act “an act of self-harm to a sector which is a jewel in the crown of UK manufacturing”.

Yet sustainability groups argue any weakening threatens the UK’s long-term climate goals. The UK Sustainable Investment and Finance Association’s (UKSIF) chief executive warned the move could undermine investor confidence, though the full quote was not available.

Industry sources point to driver reluctance: worries about range, a lack of charging points, and EVs failing to hold their value second-hand. Downing Street is expected to meet with the car industry this week to discuss the shift, which was first reported by the Sunday Times. Labour, which previously accused the Conservatives of “moving goalposts on phase out dates”, is now set to do the same — albeit by a different route.

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