Starmer Relaxes Electric Vehicles Mandate Amid US Tariffs
The government has updated the zero emissions vehicle (ZEV) mandate, relaxing rules around fines for manufacturers that do not sell enough electric vehicles (EVs).
Unveiling the plans during a visit to a Jaguar Land Rover plant in Birmingham on Monday, Prime Minister Sir Keir Starmer added that cleaner, efficient petrol cars sold before 2030 will also count towards the ZEV mandate.
In what could be good news for businesses and sole traders, vans with an internal combustion engine (ICE) will be allowed to be sold until 2035, along with hybrid vans.
2030 Phase-Out Date Restored
The government said the changes reflect a consultation on delivering the 2030 ZEV mandate and fulfilling Labour’s pledge to restore the phase-out date, which the previous Conservative government had delayed to 2035.
Transport Secretary Heidi Alexander announced in January that the sale of new ICE vehicles would end in 2030, a move confirmed by Chancellor Rachel Reeves on April 7.
Speaking from the West Midlands car plant, Reeves said that the government wanted to provide clarity and certainty for manufacturers, “which is why today we are reinstating the 2030 phase-out date for new petrol and diesel car sales, just as we promised in the election.”
“This is fundamental for achieving our plans for energy security and, crucially, for incentivising investments in Britain,” she said.
Listened to Industry
The government said the changes would support the car industry, a moved deemed particularly relevant to manufacturers in light of U.S. President Donald Trump introducing 25 percent tariffs on imported cars and car parts.
According to the Society of Motor Manufacturers and Traders (SMMT), the United States is the UK’s second largest car export market after the European Union, with more than 101,000 units shipped last year, representing 16.9 percent of cars exported.
Responding to the ZEV mandate changes, SMMT Chief Executive Mike Hawes said in a statement: “The government has rightly listened to industry, responded quickly to global dynamics and recognised the intense pressure manufacturers are under.
Consumer Demand
Hawes said that to grow public demand for EVs to the level required needs “equally bold” financial incentives.
Earlier this month, the SMMT recorded that March was the best ever month for new EV registrations, but that consumer demand and the resultant market share is still far below the mandated target.
In January, the industry body noted that despite electric cars holding a record market share, only one in 10 buyers chose an EV in 2024, with petrol remaining the most popular (61 percent), followed by hybrids (16 percent).
Hawes added that the industry will await full details of the regulatory amendments, “but, given the potentially severe headwinds facing manufacturers following the introduction of US tariffs, greater action will almost certainly be needed to safeguard our industry’s competitiveness.”
Electric Revolution
In a speech at Jaguar Land Rover, Starmer outlined how car manufacturing is not only part of the UK’s industrial heritage, but part of its future, with electric vehicle production key to securing that future.
The prime minister said: “This is a government of industrial renewal. Because my choice in this volatile world is to back British brilliance, I believe that British car companies should be at the forefront of the electric revolution. This is the race that we belong in.”
He continued: “I think EV targets are good for the climate, good for business certainty and investment, and good for British manufacturing. But I accept those targets have to work for British manufacturers.”
“Today, we’re going to introduce much more flexibility into EV mandates. We’re going to help car companies based in Britain reach the targets in a way that supports growth,” Starmer said.
