The automotive industry has welcomed the government’s announcement that it will relax ZEV Mandate rules.
It has said the 2030 ban on new petrol and diesel cars will remain unchanged, but vehicle manufacturers will have more flexibility around EV sales targets until then.
Further, new hybrids and petrol and diesel vans can be sold until 2035 and smaller manufacturers will be exempt from the targets.
The announcement comes after the government announced a consultation into EV sales targets in December, following a backlash from vehicle manufacturers who said the stipulates were too stringent and threatened UK jobs and future investment in the sector.
ZEV Mandate reforms
Mike Hawes, SMMT chief executive, said: “The government has rightly listened to industry, responded quickly to global dynamics and recognised the intense pressure manufacturers are under. Industry remains committed to decarbonising road transport but the ZEV Mandate targets are incredibly challenging, especially with a paucity of consumer demand and geopolitical upheaval.
“Growing EV demand to the levels needed still requires equally bold fiscal incentives, however, to give motorists full confidence to switch.
“We await full details of the regulatory amendments but, given the potentially severe headwinds facing manufacturers following the introduction of US tariffs, greater action will almost certainly be needed to safeguard our industry’s competitiveness. UK-US negotiations must continue at pace, while the long-awaited industrial and trade strategies should prioritise automotive and be delivered at speed.
“In this vastly changed world, a package of measures is needed to support manufacturing, especially the supply chain, so our industry can deliver the economic growth, jobs and investment the country needs.”
