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Government Adjusts Net Zero Auto Industry Targets Amidst Electric Vehicle Transition
The government has unveiled revised measures for automobile producers as part of its ongoing drive towards Net Zero emissions. While the prohibition on new petrol and diesel car sales by 2030 remains in place, policymakers have introduced several adjustments to the strategy. These modifications include permitting the sale of hybrid vehicles until 2035 and granting exemptions to low-volume manufacturers from the end-of-decade deadline.
Commercial Vehicle Policy Extended to 2035
Operators of commercial vehicles will still have access to diesel models until 2035, providing a considerable benefit to business owners hesitant to transition to fully electric vehicles. Furthermore, the formerly stringent Zero Emission Vehicle (ZEV) mandate, which compelled automotive brands to progressively increase their proportion of EV sales from 28 percent in 2025 to 80 percent by 2030, has been significantly relaxed.
Industry and Advocacy Groups React to Policy Adjustments
Predictably, this governmental shift has provoked strong reactions across the automotive sector, the electric vehicle charging infrastructure industry, and various policy think tanks, all expressing their perspectives on the implications of these policy alterations.
Stakeholder Perspectives on Easing Green Motoring Transition
This report examines the diverse responses from key stakeholders to the government’s recent proposals aimed at moderating the transition to more environmentally friendly transportation.
Reactions Divided Following Government’s Revised EV Mandate
The following analysis categorizes the reactions from different groups to illustrate the consequences of the government’s adjustments to previously strict electric vehicle targets.
Electric Vehicle Industry Response
For a sustained period, the electric vehicle sector has advocated for clearer guidelines and enhanced incentives to stimulate EV adoption, particularly among individual consumers, emphasizing the need for encouragement rather than mandates.
Industry Leaders Acknowledge Policy Adjustments but Call for Incentives
Industry body, the Society of Motor Manufacturers and Traders (SMMT), acknowledged that the government has ‘listened to the EV industry and recognized the intense pressure manufacturers are under,’ which is seen as a constructive move.
Incentives Remain Crucial for EV Demand
However, the absence of robust incentives remains a significant concern.
The SMMT representative stated, ‘Growing EV demand to the required levels still necessitates equally substantial financial incentives to provide motorists with complete confidence in making the switch.’
Automobile Association Supports Pragmatic Approach, Urges Accessibility
The Automobile Association (AA) echoed this sentiment. AA president Edmund King stated that ‘Today’s announcements are a pragmatic step forward which we hope will assist manufacturers and instill confidence in drivers.’ He added, ‘The inclusion of hybrids can serve as a transitional measure for those not yet prepared for a complete shift to electric.’
‘Our consistent message to the government is that more action is needed to make EVs accessible to everyone. While drivers generally express hesitancy, most are not opposed to the transition.’
Charging Sector Concerns Over Mandate Relaxation
One critical incentive is the reduction of VAT on public charging. However, some charging companies are apprehensive that the relaxed ZEV mandate might weaken the impetus for full electrification.
Charge UK Cautions Against Investment Uncertainty
Vicky Read, CEO of Charge UK, stated: ‘After months of uncertainty, we strongly welcome the Government confirming the 2030 phase out date and the headline trajectories for EV sales.’
‘However, by implementing indirect modifications, the ZEV Mandate has been diluted, creating potential instability for investment in EV charging infrastructure. It is now imperative that today’s announcement is promptly followed by the comprehensive package of support measures for drivers promised by the government, which will facilitate smoother investment in charging infrastructure.’
Trump Tariffs and Job Security Concerns
Another primary concern revolves around the potential impact of new 25 percent tariffs on US automotive imports imposed by the Trump administration. These tariffs could exacerbate potential job losses linked to the ZEV mandate.
Trade Union Urges VAT Reduction and Extended ICE Vehicle Deadline
Sharon Graham, general secretary of Unite, reiterated the need for VAT reductions to stimulate EV uptake and safeguard jobs, even suggesting a further extension to 2035 for internal combustion engine (ICE) vehicles. ‘While today’s announcement by the government on ZEVs and hybrids is welcome, it is insufficient to reverse the ongoing damage to the UK automotive sector, which is currently facing significant challenges, including plant closures,’ she stated.
‘We urgently need to explore additional measures such as VAT exemptions, and if a viable jobs plan for the sector cannot be implemented by 2030, reconsidering the 2035 deadline for all ICE vehicles will be necessary.’
Car Manufacturer Responses
Several car manufacturers have reiterated their position that while the government’s updated policies may ‘help ease financial pressures,’ they do not fully address the existing challenges.
Ford UK Calls for Consumer Incentives for EV Adoption
Lisa Brankin, Chair of Ford UK and MD of Ford of Britain and Ireland, commented: ‘The government’s response to the extensive ZEV mandate consultation represents a small step in the right direction, but it falls short of the substantial leap required to address the particularly demanding electric vehicle market conditions.’
‘Ford has consistently supported the UK government’s ambitious Net Zero targets and has invested significantly in product development, manufacturing, and marketing to introduce a comprehensive range of electric vehicles to consumers.’
‘What the UK requires are tangible incentives to assist consumers in transitioning to electric mobility.’
Jaguar Land Rover Highlights Tariff Concerns Amidst ZEV Mandate Changes
However, for other manufacturers, the immediate priority is the crisis precipitated by tariffs imposed by the US, overshadowing the positive aspects of ZEV mandate adjustments. Adrian Mardell, CEO of Jaguar Land Rover, noted: ‘We welcome the increased flexibilities in the ZEV mandate, which is a constructive step in bolstering the UK automotive sector’s confidence to invest in its electric future.’
‘However, the imposition of US tariffs on our sector will cause considerable detriment, and resolving this issue remains a critical task for the Government.’
Polestar Criticizes Hybrid Vehicle Extension, Supports Tariff Response
Exclusive EV manufacturers like Polestar concurred that ‘the Government has appropriately supported British car manufacturing in the face of tariffs’ but expressed ‘disappointment’ regarding the extended allowance for hybrid vehicle sales. They believe that the extension diminishes the ‘urgency in transitioning to a cleaner future.’
Matt Galvin, Managing Director of Polestar UK, remarked: ‘This policy modification signals to manufacturers that continued investment in fossil fuel-powered vehicles is acceptable.’
Echoing Ford’s Lisa Brankin, he advocated for enhanced incentives for new car buyers, stating, ‘Regrettably, today’s announcements contain no measures to support individual consumers in making the switch to EVs.’
‘We strongly urge ministers to utilize fines collected from the ZEV mandate to directly assist retail consumers through urgently needed incentives.’
‘This could involve temporary VAT relief on new electric vehicles and revisions to the expensive car supplement threshold, currently set at £52,000 since 2017, to reflect inflationary pressures.’
Environmental Groups’ Reactions
As expected, environmental organizations have voiced their perspectives on the moderated EV targets.
Clarity Welcomed but Incentives Remain Key for Environmental Advocates
A prevailing sentiment suggests that clarity is a positive step for both the industry and consumers. However, the core issue of incentivizing EV adoption remains unaddressed.
EVA England Emphasizes Need for Driver Support
This viewpoint is shared by EVA England, an organization representing EV owners, which considers the government’s reaffirmation of the 2030 target ‘encouraging’ as a ‘roadmap for driver planning.’ However, they emphasize that the transition ‘will not occur spontaneously.’
Warren Philips, Chair of EVA England, commented: ‘It is regrettable that no additional measures were introduced today to support drivers who, like car manufacturers, require assistance to facilitate the transition.’
‘Government intervention is necessary to address the high upfront costs of EVs in the short term and to improve access to affordable charging solutions for households, particularly those without home charging capabilities.’
‘Failure to overcome existing barriers to EV uptake will jeopardize the government’s appropriately ambitious goals for phasing out petrol and diesel vehicles this decade.’
Concerns Over Hybrid Extension, Recognition of UK EV Market
Other environmental groups have expressed reservations about the government’s decision to permit hybrid vehicle sales until 2035. They are, however, satisfied that ministers acknowledge the UK’s significant role in the global EV market.
FairCharge Acknowledges Hybrid Extension Rationale, Urges UK EV Leadership
Quentin Willson, founder of EV advocacy group FairCharge, stated: ‘While we disagree with the inclusion of combustion engine-dominant hybrids in the ZEV mandate until 2035, we understand the underlying rationale, along with increased flexibilities until 2029.’ He added, ‘The government’s declaration that this is a pivotal moment for the UK to become a leading and innovative EV market is a significant advancement.’
Transport & Environment UK Criticizes Mandate Weakening Amidst Tariff Concerns
Conversely, other environmental groups have been more critical, contending that ‘extended flexibilities’ for automakers to meet ZEV targets through credit mechanisms and deadline extensions will ‘erode policy certainty’ and impede the global competitiveness of British manufacturing. Anna Krajinska, director at Transport & Environment UK, criticized the adjustments: ‘Weakening the ZEV mandate in response to US tariffs is perplexing, especially given that the majority of our car exports to the US are still petrol and diesel vehicles.’
‘Diluting EV targets will not safeguard exports or jobs. The sector urgently requires regulatory predictability and a robust industrial strategy to support domestic manufacturing and maintain competitiveness in the global shift towards electrification.’
Greenpeace UK Warns Against Chinese EV Market Leadership
The competitive threat from Chinese EV manufacturers is also a major concern for some environmental campaigners. Dr Doug Parr, policy director at Greenpeace UK, commented: ‘It undermines investment, risks consolidating Chinese leadership in the sector, and could impede the transition to cleaner transport for vehicle vendors in the UK.’
‘The climate emergency will not accommodate the UK’s delayed action, nor will Chinese electric vehicle producers.’