The UK government is initiating a fast-track consultation to review electric vehicle (EV) sales rules due to industry pressure. Carmakers argue that current targets are overly ambitious given weaker-than-expected demand.
Business Secretary Jonathan Reynolds is expected to announce this consultation at the Society of Motor Manufacturers and Traders' annual dinner. Currently, EVs are required to make up 22% of car sales and 10% of van sales, with penalties for non-compliance.
Manufacturers can offset shortfalls by purchasing credits from EV-focused firms, which some critics claim disadvantages UK-based manufacturers. Despite an increase in EV registrations, attributed to heavy discounting, industry sources consider this trend unsustainable.
Nissan and other automakers have urged the government to introduce more flexible regulations, warning that strict rules could jeopardize UK jobs and investments. The government is considering options such as allowing credit transfers between vehicle types and new incentives for private buyers while maintaining annual quotas.