UK Government May Relax Rules On EV Targets, Easing Need To Buy Credits
The UK government is set to review electric vehicle (EV) sales rules through a "fast track" consultation, following pressure from carmakers who argue that current sales targets are too ambitious given weaker-than-expected demand, according to the BBC.
Business Secretary Jonathan Reynolds is expected to announce the consultation at the Society of Motor Manufacturers and Traders’ annual dinner on Tuesday.
Under existing rules, EVs must account for 22% of car sales and 10% of van sales this year, with non-compliance resulting in £15,000 fines per vehicle. Manufacturers can offset shortfalls by purchasing credits from EV-focused firms like Tesla or BYD, which critics say disadvantages UK-based manufacturers.
Longtime Tesla skeptic Mark Spiegel responded to the news on X stating: "So now the UK will join the U.S. and EU in killing the need for car companies to buy emission credits from Tesla."
While EV sales have risen, making up nearly a quarter of registrations in October, industry sources attribute this to heavy discounting, which they claim is unsustainable.
The BBC writes that Reynolds aims to address these challenges in his forthcoming announcement.
Carmakers, including Nissan, have urged Reynolds and Transport Secretary Louise Haigh to make EV sales regulations more flexible, citing risks to UK jobs and investments. Nissan warned the rules threaten the business case for UK manufacturing, while Ford recently announced 800 job cuts, partly due to weaker EV demand.
While committed to Labour’s 2030 target for ending petrol and diesel car sales, the government is open to tweaks in the EV mandate. Options include allowing credit transfers between cars and vans, granting credit for British-made EVs sold abroad, or introducing new incentives for private buyers.
The government seeks industry consensus on changes but insists annual quotas will remain. Haigh emphasized that while "flexibilities" are being considered, the mandate itself "will not be weakened."