The UK government has relaxed electric vehicle (EV) sales targets to support the automotive industry amid new US trade tariffs. While the 2030 ban on new petrol and diesel car sales remains in place, carmakers will now have greater flexibility in meeting yearly EV targets and will face reduced penalties.
Transport Secretary Heidi Alexander emphasized that these adjustments aren’t a “silver bullet,” but part of a broader response to US trade measures. Opposition parties argue the Labour government’s changes fall short of the support the car industry needs.
US President Donald Trump recently imposed a 25% tariff on vehicles imported from the UK, a major blow to one of the country’s key export markets. This came alongside a separate 10% duty on most UK goods announced days earlier.
Although the consultation on EV policy closed in February, Alexander told the media that the government accelerated implementation in reaction to the new tariffs. Officials say the reforms reflect collaboration with UK carmakers, aiming to maintain progress toward phasing out petrol cars while making compliance more manageable.
Under current rules, 28% of new UK car sales in 2025 must be electric, increasing annually until 2030. But with the new flexibility, automakers can offset shortfalls in one year by exceeding targets in another. Additionally, the fine for non-compliance will drop from £15,000 to £12,000 per vehicle.
A confirmed ban on hybrid cars will begin in 2035. However, niche British manufacturers like Aston Martin and McLaren can continue selling petrol models beyond 2030. The package also includes £2.3 billion in tax breaks for the industry.
The previous Conservative government had extended the petrol/diesel car sales ban to 2035, but Labour restored the original 2030 deadline in its 2024 election manifesto. Industry leaders have warned that slow EV adoption—due to high costs and limited charging infrastructure—could hinder these goals.
Labour leader Sir Keir Starmer said the reforms would drive growth and help UK manufacturers compete globally. Mike Hawes, head of the Society of Motor Manufacturers and Traders, welcomed the changes as “much-needed.”
Yet others remain skeptical. Vertu Motors CEO Robert Forrester criticized the move as ineffective, saying manufacturers still face massive penalties. “It’s just tinkering—more hope than substance,” he said.
Shadow business secretary Andrew Griffith called the policies “half-baked,” echoing Conservative leader Kemi Badenoch’s claim that reaching net zero by 2050 is “impossible.” The Liberal Democrats also voiced concerns, urging stronger consumer incentives to encourage EV purchases and warning the measures won’t offset the harm from US tariffs.
The US is the UK car industry’s second-largest export market, after the EU. On Saturday, Jaguar Land Rover, based in Coventry, said it would suspend US shipments in April to assess the impact of the new trade rules. The separate 10% tariff on UK imports also took effect over the weekend, with even steeper duties affecting some other countries.
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