The government has played down reports that it is planning to bring forward the publication of a review of electric vehicle sales targets from 2027 to next year amid concerns from the car industry.
The government had said in April it would weaken its zero-emission vehicle (ZEV) mandate – which was brought in to force carmakers to sell more electric cars every year or face the prospect of steep fines – after lobbying from the car industry, and planned to review the targets.
“The ZEV mandate review starts next year … and of course we’d want to complete that review as quickly as we can,” the industry minister, Chris McDonald, told the Financial Times.
However, a government spokesperson later said that only “preparatory work” would begin next year, with the review itself due to be published in 2027.
Carmakers had argued the rules were economically unsustainable, leading the UK to introduce “flexibilities”, which allowed them to earn “credits” by selling hybrid cars, which combine a smaller battery with a petrol engine. The loopholes allow carmakers to sell more hybrids, which are more profitable for them, amid fierce competition from rivals, including from China.
Referring to the changes to the rules introduced in the spring, McDonald said: “We’ve got to be responsible to the industry, and we’ve also got to be responsive to where the market is as well.”
The government spokesperson said: “We have not brought forward the ZEV Mandate review. As previously committed, we will publish the review in early 2027 which means preparatory work will begin next year so stakeholders can be properly engaged.
“Zero-emission vehicles are good for family finances and good for the environment – saving typical drivers as much as £1,500 a year on fuel and the transition to EVs is crucial to delivering jobs and growth, improved air quality, energy security, as well as quieter cleaner towns and cities.”
McDonald was speaking as he visited Nissan’s factory in Sunderland, where the Japanese carmaker has begun production of its latest electric car.
The launch of the third-generation Leaf, which was the first mass-market battery electric car to be built in the UK, is seen as a crucial step in the British car industry’s move away from petrol and diesel.
Nissan has already produced more than 280,000 Leaf models at the plant in north-east England, which is Britain’s largest car factory.
Electric car sales have increased rapidly in recent years. They represented more than a fifth of the UK market in July.
However, carmakers previously overestimated demand for EVs, meaning they have had to lower their prices to attract buyers.
Ministers said they would not weaken plans to ban the sale of new petrol or diesel cars from 2035, after the EU announced plans to water down the timing of the phaseout of new combustion engine vehicles.
The EU confirmed on Tuesday it would no longer require carmakers to ensure that 100% of cars and vans produced had zero emissions from 2035.
After heavy pressure from the car industry and leaders of several EU member states including Germany and Italy, the European Commission has promised to reduce this requirement to 90%. This will allow 10% of production after 2035 to be plug-in hybrid electric cars, or even pure combustion engine vehicles.
In a trade-off with industry, carmakers will have to compensate with other green measures on the factory floor, including the use of green steel made in Europe or use of biofuels in non-electric vehicles.
