The UK government is poised to make a U-turn on its ambitious plan to make electric vehicles (EVs) a dominant force in new car sales by 2030. A reduction in the target for EV sales could be as drastic as cutting it from 80% to 50-70%, according to reports.
This move would mark a significant shift from the current Zero Emission Vehicles (ZEV) mandate, which outlines a phased increase in EV sales, reaching 80% by the end of the decade. Currently, car manufacturers are required to sell at least 28% electric vehicles by 2025, with the target escalating annually until 2030. Companies failing to meet these targets face hefty fines of £15,000 per non-compliant car, although they can offset these costs by purchasing credits from rivals who exceed their quotas.
Car manufacturers have been lobbying for a relaxation of the mandate, arguing that it's outpacing consumer demand and incurring significant costs. The Society of Motor Manufacturers and Traders (SMMT) estimates that companies have spent over £10 billion on discounts to meet EV quotas in the past two years alone. Unite union general secretary Sharon Graham has also warned that failing to act could be 'an act of self-harm' for the UK's manufacturing sector.
However, environmental groups are strongly opposing any weakening of the target. James Alexander, chief executive of the UK Sustainable Investment and Finance Association (UKSIF), warns that a reduced target would undermine investment in vital EV charging infrastructure, potentially slowing its rollout. Consumer polling commissioned by UKSIF suggests 74% of Britons support their local councils increasing or maintaining support for EV charging facilities.
Despite these concerns, the government is expected to hold a consultation on the new 2030 target, with a final decision several months away. Downing Street is set to meet with representatives from the UK car industry this week to discuss the proposed policy shift, which has sparked widespread debate over its potential impact on the environment and the automotive sector.