Britain's automotive manufacturers are urging a significant reduction in government mandates for electric vehicle (EV) sales, citing a recent decline in production and persistent industry pressures. The Society of Motor Manufacturers and Traders (SMMT) reported that UK car production in July fell by 10.6 percent compared to the same month last year, reaching 61,767 units. For the year to date, production is down 4.7 percent, with 433,523 vehicles produced.
These figures come as the industry faces challenges in meeting the government's Zero Emission Vehicle (ZEV) mandate, which aims to increase the proportion of EVs sold each year. Failing to meet these targets could result in financial penalties for manufacturers. Currently, one in four new cars sold in the UK has been electric, making the 2026 target of 33 percent unlikely to be met. The mandate is set to increase to 80 percent by 2030.
While the government recently indicated a willingness to adjust targets due to slower-than-expected consumer uptake, the SMMT's data shows a positive trend in the production of electrified vehicles. Production of fully electric and hybrid models increased by 6.8 percent to 25,678 units in July, now representing over 40 percent of all cars manufactured in the UK.
Beyond production figures and EV targets, carmakers are contending with other significant challenges. Industrial energy costs in the UK are reported to be 60 percent higher than in rival European countries. Additionally, proposed 'Made in the EU' regulations from Brussels could disadvantage British-made vehicles in the continental market, potentially impacting their competitiveness.
SMMT Chief Executive Mike Hawes highlighted the severe strain on UK vehicle manufacturers, stating that July's decline was partly due to seasonal summer shutdowns and model changeovers. However, he emphasized that these factors are being exacerbated by weaker international demand and intense global competition. Hawes called for urgent and substantial reforms to the ZEV mandate, a reduction in high energy costs, and negotiations to ensure fair trade with the EU to support the growth of UK automotive manufacturing.