The UK government is anticipated to significantly reduce its 2030 electric vehicle (EV) sales targets this week, following extensive lobbying from car manufacturers. The proposed changes, expected to be announced by Cabinet Minister Louise Haigh, would lower the requirement for new cars sold to be fully electric from the current 80 percent to a lower figure, allowing for a greater proportion of hybrid vehicles to be sold by that date.
This potential adjustment to the Zero Emission Vehicle (ZEV) mandate comes after a government review launched in August. Car manufacturers have argued that the existing targets, which necessitate an increasing percentage of EV sales each year, have become financially unsustainable due to the costs associated with discounts and incentives needed to meet quotas. The Society of Motor Manufacturers and Traders (SMMT) has pushed for reforms, suggesting that a relaxation of targets would be welcomed by the automotive industry.
Should the government reduce the pure-EV requirement, potentially to 55 percent, hybrids could comprise nearly half of new car registrations. This shift could offer consumers more choices, particularly those hesitant to transition fully to electric vehicles. Brands are increasingly offering plug-in hybrid electric vehicles (PHEVs) with substantial electric-only ranges, such as those from Chinese manufacturers and offerings like the Audi A3 TFSI e. The SMMT reported a 30 percent jump in plug-in hybrid registrations in October, securing a 15 percent market share.
However, industry experts caution that changing targets can create uncertainty for manufacturers and erode consumer confidence. Steve Walker of Auto Express stated that manufacturers require certainty for investment and consumers need confidence and infrastructure to adopt EVs, warning that frequent rule changes can hinder progress. A government spokesperson affirmed commitment to the ZEV mandate and the ultimate phase-out of new petrol and diesel cars by 2030, emphasizing a "pragmatic and balanced approach" to the transition.
The potential loosening of EV targets could also affect the price of electric vehicles. With reduced pressure to offer discounts, upfront EV prices might increase. However, ongoing advancements in technology and manufacturing are also aimed at reducing EV costs, with the cheapest model in the UK currently priced at £11,990.
Concerns have also been raised about the impact on charging infrastructure. The EV charging sector has warned that weakening the ZEV mandate framework could slow investment in public charging points, potentially disadvantaging drivers and communities who rely on them. Investments made by companies like Believ, totaling over £300 million, were based on the strength of the original ZEV mandate.
This potential change follows a similar move by the EU, which recently backed proposals allowing more combustion-engined cars to be sold after 2035. The UK government's final decision on the ZEV mandate is expected this week.