The UK government relaxes EV sales regulations to protect the car industry against US tariffs but maintains its commitment to phase out petrol and diesel cars by 2030. The changes made by Transport Secretary Heidi Alexander to BBC Breakfast represent a solution that will help fight against Trump’s trade restrictions. Manufacturers have new freedom to adjust their yearly EV targets because missing one year allows offsetting in the following year and the penalty for failing to meet emissions standards reduces to £12,000 per vehicle from £15,000. The opposition parties express their opinion that this move is insufficient to protect the sector.
The U.S. President Donald Trump introduced two new trade restrictions last week by imposing a 25% tariff on imported UK automobiles that sell in the U.S. market as well as a 10% tariff on most UK goods which he announced on Wednesday. The Transport Secretary Heidi Alexander revealed during the February EV targets consultation that the changes would provide practical support to the industry while maintaining the 2030 phase-out requirements. The current requirement demands electric vehicles to represent 28% of new car sales in 2025 with annual increases. The updated flexibility provides manufacturers the ability to recover lost ground and hybrid vehicles will face sales restrictions starting from 2035. The hybrid car ban after 2030 affects only boutique car manufacturers such as Aston Martin and McLaren.
The Times published an op-ed by Prime Minister Sir Keir Starmer who announced £2.3 billion for EV tax incentives and charging infrastructure development that the Treasury supported through the October Budget. The move presented an opportunity for economic development that would benefit employment and export growth. The Society of Motor Manufacturers’ Mike Hawes expressed appreciation toward the policy shift yet Vertu Motors’ Robert Forrester dismissed it by stating the remaining fines would amount to billions of dollars. The BBC broadcast heard his statement that the efforts amount to “tinkering rather than fixing” and he described the approach as “hope over reality.”
Automotive leaders have consistently stated that electric vehicle adoption remains low because both the prices remain elevated and charging infrastructure lacks uniformity. Shadow business secretary Andrew Griffith labeled the plan “half-baked” as he echoed the net-zero skepticism of Kemi Badenoch. The Liberal Democrats’ transport spokesperson emphasized that larger incentives for buyers would be necessary because Trump’s tariffs targeting the UK’s second-largest export market after Europe present a significant threat to the industry’s survival.
