The UK government has eased electric vehicle (EV) sales targets in a move aimed at supporting the car industry, following new US tariffs that threaten a key export market. While the 2030 ban on the production of new petrol and diesel vehicles remains in place, manufacturers will now have greater flexibility in how they meet annual EV targets and will face lower fines for non compliance.
Transport Secretary Heidi Alexander said the changes, introduced in response to the 25% levy on cars imported to the US, are not a “silver bullet” but part of a broader strategy to shield the industry from international trade pressures. The new US tariffs, introduced last week by President Donald Trump, are in addition to a 10% tax on nearly all UK exports announced earlier.
Although the consultation on the UK’s EV target changes concluded in mid-February, the government expedited its response in light of the US measures. Officials stated they worked closely with British car manufacturers to balance support for the industry while reinforcing the UK’s long-term commitment to phasing out fossil-fuel vehicles.
Under the existing EV mandate, automakers risked fines of £15,000 for every non-compliant vehicle sold. For 2025, 28% of all new vehicles sold in the UK must be electric, with that percentage set to increase annually until 2030. However, firms will now be able to offset shortfalls in earlier years by exceeding targets in later years, giving them room to adapt their production strategies.
In addition, the government has confirmed that:
- Smaller firms such as Aston Martin and McLaren will be allowed to continue producing petrol vehicles beyond 2030.
- Certain hybrid models will remain on the market until 2035.
- The fine for non-compliance with the EV mandate will be reduced from £15,000 to £12,000 per vehicle.
Prime Minister Sir Keir Starmer said in a column that £2.3 billion will be allocated to support consumers in the transition to electric vehicles, including tax incentives and the expansion of the UK’s charging infrastructure. He stated the measures would “boost growth that puts money in working people’s pockets” and ensure that “home-grown firms” remain competitive on the global stage.
Despite these efforts, opposition parties remain critical. Shadow Business Secretary Andrew Griffith dismissed the measures as “half baked,” echoing Conservative leader Kemi Badenoch’s warning that “net zero by 2050 is impossible.” The Liberal Democrats also weighed in, urging stronger incentives for consumers and warning that the announced changes are insufficient to shield the sector from Trump’s tariffs.
The United States is the second-largest export market for British cars, following the European Union. In response to the new trade barriers, Jaguar Land Rover announced it will pause all US-bound shipments this April as it reviews the impact of the new levies.
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