UK (Parliament Politics Magazine) – UK automakers urged softer EV targets, citing high costs and job risks, despite increasing electric car sales and government climate goals.
As reported by The Guardian, documents reveal UK carmakers lobbied for relaxed EV rules, citing risks to jobs and hundreds of millions in potential costs.
How could UK EV rules threaten jobs and investment?
Responses submitted to the government show automakers, including BMW, JLR, and Nissan, argued that annual EV sales targets risk reducing investment in the UK. Fast Charge, which reports on electric vehicles, obtained the responses and shared them with the Guardian.
Land Rover’s JLR said maintaining the rules would “materially damage UK producers’ ability to invest in vehicle lines.”
Last year, the Tory government set rules requiring automakers to boost electric car sales or face fines under the zero-emission vehicle mandate.
EV sales surged in July, surpassing 20% of the market, with all manufacturers meeting last year’s targets. Earlier overestimation of electric car demand forced firms to lower costs.
Lower costs benefit buyers, but automakers say they are unsustainable. After heavy lobbying, the Labour government eased rules in April, allowing more petrol cars.
Documents show automakers lobbied privately for softer rules, despite warnings that changes could raise UK carbon emissions.
What did BMW say about UK manufacturing and job risks post-Brexit?
The German automaker BMW warned that the UK has become tougher for manufacturing since Brexit, calling the ZEV mandate “far more radical” than EU or Californian standards.
BMW, producing Mini and Rolls-Royce in the UK, added,
“The UK has already become a far more difficult place to produce vehicles now post-Brexit, and a further challenging market environment could ultimately damage competitiveness and have a detrimental effect on the 8,000 jobs – up to 50,000 with supply chain – we currently retain in the UK.”
A BMW spokesperson stated that the firm backed Britain and global climate goals, adding,
“We believe consumers will ultimately determine the pace of transition to ZEVs, as mandates do not create demand.”
Toyota’s views on potential penalties and hybrid sales in the UK
Japan’s Toyota, which has factories in Derbyshire and north Wales, stated, “penalties could amount to hundreds of millions of pounds for individual manufacturers, a level that could place employment and investment across the industry at risk.”
The world’s largest carmaker has focused on hybrid vehicles, securing government approval to sell them in the UK until 2035.
Nissan and JLR’s stance on EV rules and their impact on UK investment
Nissan, which operates its plant in Sunderland, urged for more flexibility. Otherwise, high costs could hinder UK battery EV development and investment.
A Nissan spokesperson stated,
“We welcome the government’s pragmatic approach to lower-than-anticipated EV take-up, including the introduction of consumer incentives designed to bring consumer demand closer to ZEV mandate requirements.”
JLR, the British automaker, raised concerns over a credit-buying rule for electric car sales. It argued that the policy forced UK companies to support rivals, especially in China, which leads the world in EV production.
What did Ben Nelmes say about the UK car industry meeting 2024 EV targets?
Ben Nelmes, CEO of New Automotive, a group campaigning for electric vehicles, stated,
“The car industry’s own consultation responses confirm that the ZEV mandate’s 2024 targets were met, proving the policy is a powerful driver of change.”
He added,
“The focus should now shift to accelerating the transition, as this data shows the UK automotive industry is capable of delivering cheaper, cleaner transport.”
What did Tom Riley say about carmakers and UK climate policy?
Tom Riley, the author of the Fast Charge newsletter, added,
“Carmakers love to wave the Union Jack when it suits them, but threatening UK jobs and investment to weaken climate policy is a cynical tactic.”
Mike Hawes’ views on UK carmakers and the ZEV mandate
Mike Hawes, CEO of the Society of Motor Manufacturers and Traders, a lobby group, stated,
“The automotive industry faces unprecedented challenges, not least the shift to EVs against a subdued economic backdrop and fierce global competition. The ZEV mandate intensifies the pressure with the timescale necessitating brands to spend billions to drive demand to achieve compliance. UK manufacturers have consistently warned that this cost was unsustainable and would threaten further investment.”
He welcomed the government’s decision to revise earlier targets, saying it avoided “decarbonisation at the cost of de-industrialisation.”
Key facts about UK EV rules
From April 2025, new EVs will pay £10 in the first year, then £195 annually. Existing EVs registered since 2017 will also move to the £195 rate. EVs priced over £40,000 will face an extra £425 per year for the first five years. This brings their total annual tax to £620.
The UK’s ZEV mandate requires rising annual sales of zero-emission vehicles. It aims for 100% of new car sales to be zero-emission by 2035. In 2025, the targets are set at 28% for cars and 16% for vans.