Relaxation of EV sales rules ‘undermines investment’

Environmental and pro-EV groups have criticised the Government’s relaxation of sales rules, but the automotive industry has insisted the measures do not go far enough.

Prime Minister Sir Keir Starmer announced sales of new hybrids that cannot be plugged in will be permitted to continue until 2035.

Changes to the zero emission vehicle (Zev) mandate also mean it will be easier for manufacturers which do not meet EV sales targets to avoid fines.

The climate emergency is not going to wait for the UK to get our act together

This comes after US President Donald Trump imposed a 25% tariffs on car imports.

Dan Caesar, chief executive of lobby group Electric Vehicles UK, said the “dilution” of the mandate is “in stark contrast to the accelerating ambition of the Chinese”.

He went on: “There are two certainties: China is set to cement itself as the biggest car exporting country in the world, and vehicles with plugs will dominate market share from 2030 onwards.

“UK-based automakers need to fully embrace battery electric or be significantly diminished in time, running the risk of continued job losses.”

Colin Walker, head of transport for the Energy and Climate Intelligence Unit think tank, said the Government “risks reducing the competition it has stimulated between manufacturers”, which could result in prices not falling as quickly.

“The growth of the second-hand EV market, where most of us buy our cars, would in turn be stunted – leaving millions of families stuck in petrol and hybrid cars paying a petrol premium of hundreds, and even thousands, of pounds a year,” he added.

Dr Doug Parr, policy director for Greenpeace UK, said the announcement “weakens the incentives” for growing the EV market.

He went on: “It undermines investment, risks consolidating Chinese leadership in the sector and could slow the move to clean transport for those selling vehicles in the UK.

“The climate emergency is not going to wait for the UK to get our act together, and nor will Chinese electric vehicle makers.”

Dominic Phinn, head of transport at non-profit organisation Climate Group, said: “Introducing flexibilities to legislation that is clearly doing its job confuses the market and hampers the roll-out of infrastructure.

“A competitive car industry will inevitably be driven by confident EV leaders, not by those asking for ever more flexibilities to a framework that’s designed to help them along.”

But Mike Hawes, chief executive of sector body the Society of Motor Manufacturers and Traders, said the Government has “rightly listened to industry” and “recognised the intense pressure manufacturers are under”.

He added: “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.”

Ian Plummer, commercial director of online vehicle marketplace Auto Trader, said the Government has “gone some way to supporting the industry” but “the measures are still not enough”.

He continued: “At this critical moment for the global economy, ministers should underpin consumer demand with tax breaks, such as cutting VAT on public charging.”