UK Transport Secretary Louise Haigh has affirmed that the government will not relax its electric vehicle (EV) targets but acknowledged the possibility of introducing new "flexibility" measures to help automakers meet these goals, according to the Financial Times.
On November 16, the Financial Times reported that Japanese automaker Nissan was preparing to warn UK ministers that the country's auto industry had reached a "crisis point." Nissan cautioned that jobs and investments could be at risk unless the government eased EV regulations.
The UK government's "electric vehicle mandate" requires a certain percentage of new cars sold in the UK to be electric, with the percentage increasing annually until all new cars must be electric by 2035. Companies failing to meet these targets face a penalty of £15,000 per vehicle. Current flexibility measures include allowing manufacturers to buy credits from competitors who meet their targets.
In the first 10 months of this year, EVs accounted for just 18% of new car sales in the UK, below the 22% required in 2024. The target will rise to 28% next year. Automakers have warned that the steep increase in targets, coupled with weakening consumer demand, may make compliance difficult even with the use of credits.
Haigh stated that the government is in "listening mode" and will consider the challenges faced by manufacturers during a bilateral meeting with Nissan on November 18 and a broader roundtable discussion with the auto industry on November 20. "There is some flexibility in the current regulations, but we want to work with the industry to ensure they are effective and address these issues. However, our ambition and mission remain unchanged," Haigh told LBC radio.
Government officials have indicated that "all options" are under consideration to support British automakers in meeting the targets. A government source told the Financial Times that ministers are "clearly aware" of the industry's concerns. "Manufacturers have been very candid about their challenges," the source said.
Proposals to ease compliance include allowing British-made cars sold overseas to count toward EV sales and balancing the percentage targets between cars and vans. On November 17, the UK Department for Transport did not rule out these options, stating that it was too early to make definitive decisions.
An industry insider commented that allowing overseas sales to count toward EV targets would be a "positive step" and acknowledged that all parties are exploring various possibilities.