Britain is poised to dilute its electric vehicle sales mandates, sources confirm, in a move that hands a lifeline to the domestic car industry and dodges the sort of regulatory straitjacket suffocating European rivals. The decision, expected within weeks, would slash the required proportion of zero-emission car sales from 2030 onwards, easing the pressure on manufacturers struggling to shift battery models without torching their profit margins.
Documents obtained by this desk reveal the Department for Transport is drawing up amendments to the Zero Emission Vehicle (ZEV) mandate, which currently demands that 80% of new car sales be electric by 2030, escalating to 100% by 2035. The revised target is understood to be closer to 70% by 2030, with a longer runway to the full ban on new petrol and diesel cars.
This is a direct repudiation of the European Union's approach, which has tied its own industry in knots with rigid deadlines and punishing fines for non-compliance. Brussels bureaucrats, insulated from the reality of factory floors and showrooms, have insisted on a 2035 ban on combustion engines. British ministers, by contrast, have listened to the men and women who actually build and sell cars.
"The EU model is a disaster," a senior Whitehall official told me. "It is driving investment out of Europe and into China and America. We cannot afford to repeat that mistake." The official spoke on condition of anonymity because they were not authorised to brief the press.
The numbers bear out the concern. UK car production fell 6% in the first quarter of 2024 compared to the same period last year, with electric vehicle sales plateauing at around 16% of the total market. Manufacturers have been forced to offer thousands of pounds in discounts to shift EVs, a strategy that is not sustainable. Stellantis, Ford, and Nissan have all warned that the current mandate threatens UK factories and jobs.
Relaxing the targets will allow these companies to breathe. It gives them time to develop cheaper battery technology, build out charging infrastructure, and, crucially, keep making the petrol and diesel cars that still pay the bills. No one is abandoning the electric future. But this is a recognition that you cannot force-feed a transition.
The political calculation is clear. Prime Minister Rishi Sunak has already rolled back a number of green policies, including delaying the ban on new petrol and diesel cars from 2030 to 2035. This latest move solidifies his reputation as the leader who will not sacrifice the economy for climate ideology. It also puts clear blue water between the Conservatives and Labour, whose shadow transport secretary has vowed to reinstate the 2030 deadline.
Environmental groups are, predictably, apoplectic. Greenpeace calls it "a betrayal of the planet." Friends of the Earth says it "hands the advantage to China." But these are the same voices that championed the EU's approach, which has resulted in German carmakers lobbying for exemptions and French manufacturers demanding subsidies. Their prescriptions have been tried and found wanting.
What matters is that Britain's car industry survives. The UK still produces around 750,000 cars a year, supports 150,000 jobs directly and many more in the supply chain, and contributes £15 billion to the economy. A rigid mandate would have turned that into a funeral dirge.
This is not a retreat from electric vehicles. It is a strategic pivot. The government will still invest billions in battery gigafactories and charging points. But it will no longer hold a gun to the head of its own industry. The EU can keep its red tape. Britain will make its own way.
And for once, that is the right call.
