The recent tariffs imposed by the US have prompted the UK government to ease electric vehicle (EV) sales targets in a bid to support the struggling car industry. While the ban on producing new petrol and diesel cars by 2030 remains intact, manufacturers will now have more flexibility in meeting annual targets and facing lower fines. Transport Secretary Heidi Alexander emphasized that these changes are not a cure-all but rather a part of the response to the US tariffs, which have imposed a 25% levy on cars imported to the US, a key market for the UK motor industry.
The government’s consultation on the EV target adjustments concluded in mid-February, with the changes being hastened in light of the tariffs. By collaborating with UK car manufacturers, the government aims to reinforce its commitment to phasing out petrol and diesel vehicles while implementing practical reforms to support the industry in meeting this goal. Under the current EV mandate, manufacturers risk fines of £15,000 per car sold that fails to meet emissions standards, with the current requirement stating that 28% of new cars sold in the UK must be electric this year and increasing annually until 2030.
Labour’s promise to restore the 2030 deadline for banning sales of new petrol and diesel cars and reducing non-compliance fines to £12,000 has been met with mixed reactions. Prime Minister Sir Keir Starmer highlighted initiatives to support the purchase of EVs through tax breaks and infrastructure improvements. Meanwhile, industry leaders have expressed concerns about the lack of consumer uptake of electric vehicles due to high costs and limited charging infrastructure. With the US being the second largest export market for the UK’s car industry, companies like Jaguar Land Rover have had to adjust their operations in response to the tariffs and the challenging trading environment
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