The UK government is under pressure as car manufacturers struggle to meet strict zero-emission vehicle (ZEV) targets, causing new car sales to stagnate in late 2024. Transport Secretary Louise Haigh has acknowledged the issue and is considering introducing more “flexibilities” to help manufacturers comply with the rules.
Haigh is meeting with Nissan representatives today (Nov 18), where the company plans to highlight what it calls a “crisis point” in the industry. Car makers are reportedly withholding new petrol and diesel model sales to avoid penalties under current ZEV regulations. A broader discussion with the auto industry and Business Secretary Jonathan Reynolds is set for Wednesday.
Under current plans, 22% of new cars sold in 2024 must be zero-emission, with most being electric vehicles (EVs). However, many manufacturers are significantly off-target. The situation may prompt the government to:
- Amend percentage targets.
- Introduce or expand a credit-buying system to offset missed EV quotas.
- Possibly reintroduce incentives like grants or subsidies to boost EV adoption.
If ZEV targets are eased, critics argue it could slow progress on EV charging infrastructure and harm the push for net-zero emissions. Tesla, BYD, and environmental groups are likely to oppose any rollback since these changes could benefit lagging manufacturers at the expense of EV-only brands.
The Labour government has not yet clarified whether it will push back its net-zero deadline beyond 2030. Meanwhile, demand for EVs is reportedly lower than expected, with market share hovering around 18%. This slow growth has left major brands like Ford, Kia, Toyota, and BMW warning that compliance costs could hurt their ability to invest in jobs, research, and development.
As Haigh put it, the government is in “listening mode” ahead of this week’s talks. The stakes are high for both the auto industry and the UK’s climate goals, with manufacturers eager to see an overhaul of the ZEV mandate.
What’s your take—should the government ease up on EV targets or stick to its guns?
