Starmer relaxes EV targets as Trump tariffs bite
April 07, 2025 by Siobhan Doyle
Car changing is a big deal
Prime Minister Keir Starmer has eased EV production targets to protect UK businesses from the impact of Trump’s new trade tariffs.
The 2030 ban on new petrol and diesel cars remains, but full and plug-in hybrids – such as the Nissan Qashqai e-Power, Toyota Prius, and Hyundai Santa Fe (the latter two offer plug-in hybrid options) – can be sold until 2035.
Luxury micro-volume brands such as McLaren, Lotus, and Aston Martin will also be exempt from strict EV targets under the government’s revised plan.
“Global trade is being transformed, so we must go further and faster in reshaping our economy,” Starmer said, adding the UK is pursuing a US trade deal but “ready to step in to help shelter our businesses from the fallout” if needed.
The policy shift comes as British carmakers face stiff headwinds: over one million UK-built cars were exported to the US last year, worth nearly £8bn. With new tariffs now in place, manufacturers warn of rising costs and shrinking margins.
For consumers, the change means more hybrid options will remain available beyond 2030 – a potential win for buyers not yet ready to switch to electric. But critics warn it could slow the EV transition and delay the benefits of cleaner air and lower running costs.
EV adoption remains sluggish among private buyers, with only one in ten choosing electric last year. March sales data showed EVs made up 19% of the market – well below the 28% required under next year’s Zero Emission Vehicle (ZEV) mandate.
Industry leaders broadly welcomed the government’s flexibility. “The government has rightly listened to industry,” said Mike Hawes, head of the Society of Motor Manufacturers and Traders. “But we still need bold incentives to boost consumer demand.”
Meanwhile, AA president Edmund King, said: “The announcement are a pragmatic step forward which we hope will help manufacturers and give confidence to drivers. The inclusion of hybrids can act as a stepping stone to help those not yet ready to make the full switch to electric.”
Others voiced concern that the UK is losing ground. “This dilution contrasts with China’s aggressive EV push,” said Dan Caesar, CEO of Electric Vehicles UK. “UK automakers must fully commit to electrification or risk falling behind.”
Still, EV advocates such as Quentin Willson of FairCharge see an opportunity. “We understand the pressure on carmakers, but this is also a critical moment for Britain to lead the global EV race,” he said.
The changes aim to balance the need for greener cars with the challenges facing the UK’s car industry. While giving carmakers more time to adjust, it creates uncertainty about how quickly the country will switch to electric vehicles.
Iain Reid, head of editorial at online marketplace Carwow, echoes this: “The road to zero emissions must be ambitious, but also achievable. We need to strike a balance between driving progress and acknowledging the economic realities facing both consumers and manufacturers. The road to zero policy needs to stay responsive, collaborative, and rooted in what drivers are telling us they need.”
Carwow’s 10-point ‘The Future of Motoring’ manifesto calls for the government to supercharge the transition to electric vehicles.
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