U-turn over new petrol and diesel rules with measures 'watered down'

Labour could U-turn on a previous electric car pledge with ZEV mandate rules expected to be watered down. A weaker demand for EVs means firms have heavily discounted new vehicles to meet the targets, reducing the profits made on each model.

The Labour Party government could now push through the changes to the legislation as part of a “fast-track” consultation after holding talks with car makers last week. Demand for electric cars has been hit by concerns over public charger numbers, as well as a political backlash from critics.

Under the mandate, electric cars must make up 22% of sales of new vehicles this year, rising to 28% in 2025 – albeit with important loopholes that can reduce the target considerably. If they miss their targets, carmakers face fines of up to £15,000 for each vehicle. No carmakers publicly argue with the goal of 80% battery electric cars by 2030, before a complete ban on new petrol and diesel engines in 2035.

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Vicky Read, the chief executive of Charge UK, a lobby group, said: “We must not make the same mistake again." She went on to say: “Anything that leads to fewer fully electric vehicles on UK roads is a no-go for us because it means fewer customers.”

Ben Nelmes, the New AutoMotive chief executive, said there is “a high level of uncertainty, and the target could reduce more, or less, depending on the decisions taken by the manufacturers”. Colin Walker, the head of transport at the Energy & Climate Intelligence Unit, a campaign group, argued that the mandate is working and is good for British consumers.

“The mandate is incentivising manufacturers to compete on price, and as prices come down, sales are going up, with more than one in five new cars sold in the UK being an EV in the last three months,” he said. Clive Selley, chief executive of Openreach, the BT subsidiary that builds broadband infrastructure, said the government needed to “cut through the noise and listen to businesses who are already investing large sums in the switch” when considering the future of the mandate.

“Don’t waver on the ZEV mandate,” Selley said.