Andy Burnham's government is considering a smaller-than-expected reduction in Britain's electric vehicle sales target, a move likely to disappoint domestic carmakers. Under Burnham's predecessor Sir Keir Starmer, business secretary Peter Kyle had proposed cutting the 2030 share of EVs that carmakers must sell from 80 per cent to 50 per cent. Burnham's government has instead sounded out the industry on a higher target of 60 per cent by 2030, with the remainder made up of hybrid cars. New petrol and diesel sales will still end by the close of the decade.
The issue has divided Whitehall. The business department wants the mandate cut as far as possible to help the UK car industry, which faces pressure from Chinese competition and wants a slower transition to EVs. The Department for Energy Security and Net Zero, however, is pushing back to keep Britain on track with its climate targets. Cars are a large source of emissions, and one person close to the talks said cutting the target to 50 per cent would be very hard given the carbon budgets.
Fully electric vehicles currently make up 26 per cent of the UK market, up from 22 per cent last year, after fuel price rises linked to the Middle East conflict boosted sales. Carmakers argue the planned rise from 38 per cent next year to 80 per cent by 2030 is unrealistic. Ford and Nissan have called for the target to be cut to 40 or 50 per cent, and Renault's chief executive François Provost has also backed a 50 per cent cap, warning that the van transition is lagging.
The government consultation closes on October 23. Critics of weakening the mandate warn it could jeopardise charging infrastructure investment and confuse consumers as EV sales rise. Another source said the government wants to keep a relatively high headline target while adding flexibilities to balance pressure on carmakers against continued investment.
Source: Financial Times Companies · Summarized by HeadlinesBriefing