Published by Uma Rajagopal
Posted on December 24, 2024
2 min readLast updated: January 27, 2026
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By Sachin Ravikumar
LONDON (Reuters) – Britain began a consultation on Tuesday to review rules that force automakers to produce more electric vehicles, following industry warnings that the current plan could lead to factory closures and job losses.
The consultation will take views from the industry on changing the so-called Zero Emission Vehicle (ZEV) mandate, which requires automakers to sell a higher proportion of EVs each year, or pay fines.
Carmakers say lower-than-expected EV demand has forced them to spend billions of pounds on discounts to entice customers and meet the sales targets, which have hurt Britain’s appeal as a manufacturing hub.
Last month Vauxhall owner Stellantis said it would shut a van factory in southern England, risking more than 1,000 jobs, partly reflecting the impact of the ZEV mandates.
Britain’s Labour government said it would consult to update the targets without compromising the overall direction of the regulations, which form part of Britain’s wider climate goals.
The consultation will seek views on the restoration of a 2030 deadline to phase out new petrol and diesel car sales and whether vehicles such as hybrid cars can be sold alongside ZEVs.
It will also consider measures to boost consumer demand for electric vehicles.
“We are steadfast in our mission to help our world-leading automotive industry thrive, and this consultation will look at how we can support manufacturers, investors, and the wider industry to reach their targets,” Business Secretary Jonathan Reynolds said.
The auto industry welcomed the consultation, which runs until Feb. 18.
“With the 2025 market looking under even greater pressure, it is imperative we get an urgent resolution, with a clear intent to adapt the regulation to support delivery, backed by bold incentives to stimulate demand,” Society of Motor Manufacturers and Traders Chief Executive Mike Hawes said.
($1 = 0.7980 pounds)
(Reporting by Sachin Ravikumar; Editing by Emelia Sithole-Matarise)
An electric vehicle (EV) is a type of vehicle that is powered by electric motors instead of traditional internal combustion engines, using electricity stored in batteries.
A Zero Emission Vehicle (ZEV) is a vehicle that produces no tailpipe emissions, contributing to reduced air pollution and supporting climate goals.
A mandate in the automotive industry refers to a regulatory requirement that automakers must meet, such as producing a certain percentage of electric vehicles.
Consumer demand refers to the desire of buyers for a particular product or service, which can influence production and market strategies.
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