Mandate for EVs to be relaxed
The government has relaxed its planned zero-emissions vehicle, ZEV, mandate in a bid to support the car industry. This comes as the US begins to impose 25% tariffs on all vehicles imported into the country.
“Full” hybrid cars will be able to remain on sale between 2030 and 2035 while low-volume car makers will be exempted from the requirement to achieve an 80% all-electric sales mix in 2030. All manufacturers will also be given more flexibility in how to meet the annual EV sales target that the mandate will require.
In 2024, the government revealed its plans to rework the mandate in consultations with the industry. Demand for ZEVs has fallen below the mandated target and car makers’ ability to trade profitably is at risk. A a public consultation has also been launched by the government. The mandate requires a 28% sales mix of ZEVs in 2025. Recent industry figures however have shown that it is over eight percentage points lower than that.
With car makers spending billions to discount their ZEV models to increase demand and meet the target, the government has already pledged to bring about the changes “as a matter of urgency.” This was exacerbated by Trump’s announcement to introduce a 25% tariff on all imported vehicles into the US.
The change, the government says, will “make it easier for industry to upgrade to make electric vehicles, while delivering the manifesto commitment to stop sales of new petrol and diesel cars by 2030, which will help even more British consumers access the benefits of cheap to run electric vehicles.”
The British government still hopes to negotiate a new trade deal with the US but ministers are also working on a list of retaliatory measures over the coming weeks if this does not succeed.
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