EV sales rules set to relax following pressure from major car manufacturer
March 07, 2025 by Siobhan Doyle
Car changing is a big deal
The government plans to relax mandatory quotas for electric cars after Nissan warned that they could jeopardise the future of its Sunderland manufacturing plant.
Business secretary Jonathan Reynolds said to The Times that a significant policy shift had been reached. “We are committed to ensuring Nissan’s long-term future in the UK, ensuring that both the business and regulatory environment align with this goal.”
The so-called ZEV (Zero-Emission Vehicle) mandate stresses that 28% of all car sales in 2025 must be electric, increasing to 80% by 2030. Car manufacturers will face a hefty £15,000 fine for each carbon-emitting car sold above the limit.
Reynolds said the policy change had the backing of energy secretary Ed Miliband, who has advocated for strong carbon reduction regulations.
However, it marks another setback for Miliband’s green agenda, following signs that the government may support a third Heathrow runway and redirect funds from green energy to defence spending.
“The whole government is absolutely of the view that you will not get to the progress around net zero and the energy transition that we want to see by closing down British jobs and British industry,” said Reynolds.
Carmakers such as JLR, Nissan, and Stellantis have been lobbying fiercely for the government to ease the ZEV mandate.
This move comes at a challenging time for the world’s largest automakers, who are facing great competition from Chinese manufacturers.
Reynolds had kept details of the changes to the ZEV mandate under wraps but told Nissan CEO Makoto Uchida: “Nothing is off the table.”
Key areas up for revision could include “flexibilities” that allow companies falling short of EV targets to earn “credits” or borrow from future quotas by reducing emissions from their internal combustion vehicles.
“Our goal is ambitious, but we must work with businesses to reach that zero-emission future,” Reynolds said. “We’ve demonstrated the pragmatism necessary to achieve that, and it’s exactly what Nissan wanted to see.”
Two thirds (67%) of drivers believe the government should lower the targets for the production of electric vehicles (EVs) among manufacturers, according to research by Carwow.
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