The UK is launching a review of its plans to sell electric cars

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The UK government has announced a consultation on its zero-emissions car plans, following complaints from car manufacturers that the current government could lead to job cuts as demand for electric cars stagnates.

Transport Secretary Heidi Alexander has given the car and toll industry eight weeks to submit their proposals existing EVs including how “existing arrangements and changes are working”.

The zero vehicle duty was introduced by the previous Conservative government at a time when EV sales were expected to begin.

For current purposes, part of the annual sales of car manufacturers must be zero-emission cars, and the number has increased from 22 percent in 2024 to 80 percent in 2030. Companies face fines for missing funds of up to £15,000 each. car below the required level.

Electric vehicles he counted for 18 per cent of the UK car market between January and November this year – below the 22 per cent set by law.

In November, Owner of Vauxhall Stellantis has criticized EV regulations for its plans to close its factory in Luton, putting around 1,100 jobs at risk.

Ford has also announced 800 UK job cuts due to slower-than-expected EV sales, while Nissan warned that work at its Sunderland factory, Britain’s largest, could be at risk unless the government changes its regulations on the sale of electric cars.

But the government has been clear that the 2030 theme will not be changed by new negotiations.

Alexander said: “Over the past few years, our trucking industry has been held back by a lack of assurance and strategy. This government will change that.”

The discussion will be divided into two parts: the first will see which hybrid cars can be included as sold together with zero emissions between 2030 and 2035.

The FT previously reported that ministers were keen to allow carmakers to continue selling Prius hybrids – which use the same engine and battery – in the UK until 2035. Unlike “plug-in hybrids”, which have large batteries, “full hybrids” ” they don’t plug it in. By contrast, the Tories are happy to keep petrol and diesel models on sale.

The second part will discuss the changes within the 2030 goal, where the authorities understand that they are ready to change several of the rules, including the expansion of the “commercial” mechanism that allows car manufacturers to buy credits from competitors to avoid fines.

Another “borrowing” scheme in which producers can miss out on past deals but avoid fines by promising to make more profits in the coming years is set to be extended a few years after it expires in 2026.

Speaking to the Financial Times, Nicola Walker, director of government affairs at Ford, said the company had called for a “restriction” of fines in 2025 for companies that missed targets. However, this would involve changing the original rules and it seems unlikely.

Business Secretary Jonathan Reynolds said: “We are committed to helping our world-leading companies succeed, and this discussion will look at how we can help manufacturers, investors and more companies to achieve their goals.”

The changes have been met with shock from the payments industry, which has warned that £6bn of revenue up to 2030 could be at risk if rules are loosened too much.

Vicky Read, CEO of ChargeUK, said she hoped the talks would bring “certainty” to the EV and charging sectors after “a tumultuous few months, where the foundations of the UK’s EV policy have been called into question”.

Read urged the government to “use its energy” and maintain EV targets.

Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, said: “The car industry welcomes the government’s review of the end-of-sale date for petrol and diesel vehicles, as well as possible changes to the zero-emissions car mandate.”

He added: “It is important that we find a solution quickly, with a clear intention to change the law to support the delivery of care, supported by bold incentives to support the need.”