Carmakers urge government to rethink 2030 EV rules as targets put jobs at risk
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Britain’s car industry says the government must urgently review sales targets for electric cars and secure better trade teams with the EU to protect jobs, investment and future growth.
Britain’s car industry has warned the government it must urgently rethink its electric car sales targets, otherwise known as the ZEV mandate, and secure better trading arrangements with the European Union (EU) to protect thousands of jobs and future investment.
The warning comes from the Society of Motor Manufacturers and Traders (SMMT), which says the UK automotive sector is under growing pressure from rising business costs, tougher global competition and slower consumer demand for electric cars.
Speaking at the SMMT International Automotive Summit in London, chief executive Mike Hawes said the government’s industrial strategy had made positive progress, but ministers now need to act quickly to keep the UK competitive.
“The UK automotive sector can drive growth, innovation and net zero, but only if the right decisions are taken now,” he said. “We need to open trade with Europe, competitive conditions at home, and a realistic route to grow zero emission vehicle uptake.”
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One of the biggest concerns in the ZEV mandate, which sets annual targets for the proportion of new cars and van manufacturers must sell as electric before the planned end of new petrol and diesel car sales in 2030.
The SMMT says manufacturers remain committed to the switch to electric cars but believes sales targets are running ahead of consumer demand. Many automotive business leaders agree with this, according to a new SMMT survey, saying the UK is “behind the trajectory” needed to meet the 2030 target, with 72.8% of those questioned saying it’s significantly behind.
To encourage EV sales, manufacturers say they have already spent more than £12bn on discounts and incentives. They argue this is putting pressure on profits and reducing money available for future investment.
The industry also wanted that planned changes to EU trade rules could make UK-built cars less competitive in Europe. From January 2027, tougher post-Brexit rules could see many electric and plug-in hybrid cars face a 10% tariff when traded between the UK and EU.
The SMMT estimates this could leave the industry facing a tariff bill of around £1.4bn in 2027, affecting more than £16bn worth in vehicle trade.
Rising energy and employment costs are adding further pressure. More than nine in 10 automotive businesses surveyed said employment costs had increased over the past year, while 84.8% reported higher manufacturing costs.
The SMMT is calling on ministers to review the ZEV mandate, negotiate improved trade arrangements with the EU and take further action to reduce energy costs for manufacturers.
Hawes added: “Reforming the ZEV Mandate is not about weakening ambition; it’s about making the transition achievable, protecting investment and ensuring the UK remains a place where automotive businesses can build, sell, export and grow. The window for action is closing, which means we cannot wait for lengthy discussions.”
The automotive sector supports 188,000 manufacturing jobs and handles more than £110bn worth of imports and exports each year, making it one of the UK’s largest manufacturing industries.
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