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The Government have eased pressure on the automotive industry by confirming a 2030 phase out date for new petrol and diesel cars, with hybrids allowed until 2035 and small manufacturers exempt.
The Zero Emission Vehicle Mandate will be changed to make it easier for industry to upgrade to make electric vehicles while delivering the manifesto commitment to stop sales of new petrol and diesel cars by 2030, which will help even more British consumers access the benefits of cheap to run electric vehicles.
The package will be backed by a modern Industrial Strategy, to be published in full this spring, which will help British businesses realise the potential of industries of the future.
The changes, which reflect extensive consultation, will help the car industry by:
• Increasing flexibility of the mandate for manufacturers up to 2030, so that more cars can be sold in later years when demand is higher
• Allowing hybrid cars – like the Toyota Prius and Nissan e-Power – to be sold until 2035 to help ease the transition and give industry more time to prepare
• Continuing to boost demand for electric vehicles, on top of the £2.3 billion we’re already spending on boosting British manufacturing and improving charging infrastructure – with a new charge-point popping up every half an hour
• Pressing on with tax breaks worth hundreds of millions of pounds to help people switch to electric vehicles
• Support for the car industry will be kept under review as the impact of new tariffs become clear.
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Prime Minister, Keir Starmer, said: “Global trade is being transformed so we must go further and faster in reshaping our economy and our country through our Plan for Change. I am determined to back British brilliance. Now more than ever UK businesses and working people need a government that steps up, not stands aside. That means action, not words. So today I am announcing bold changes to the way we support our car industry. This will help ensure home-grown firms can export British cars built by British workers around the world and the industry can look forward with confidence, as well as back with pride. And it will boost growth that puts money in working people’s pockets, the first priority of our Plan for Change.” |
There is a huge opportunity to be harnessed here – with the UK being the largest EV market in Europe. Over £6 billion of private funding is lined up to be invested in the UK’s chargepoint roll-out by 2030. Since July, the government has also seen £34.8 billion of private investment announced into UK’s clean energy industries.
Employing 152,000 people and adding £19 billion to our economy, the UK’s automotive industry is a huge asset to our nation – and the transition to zero emissions is the biggest opportunity of the 21st century to attract investment, harness British innovation, and deliver growth for generations to come.
