UK Government to Ease EV Sales Mandate After Nissan's Factory Warning

UK Government to Ease EV Sales Mandate After Nissan's Factory Warning

By Michael Harrison

March 7, 2025 at 09:42 PM

The UK government plans to ease electric vehicle (EV) sales quotas following pressure from major automakers, particularly Nissan, which raised concerns about its Sunderland plant's future.

Business Secretary Jonathan Reynolds confirmed this policy shift, emphasizing the government's commitment to preserving Nissan's UK operations while ensuring regulatory alignment with business needs.

Nissan car assembly line in factory

Nissan car assembly line in factory

Current ZEV (Zero-Emission Vehicle) mandate requires:

  • 28% of car sales to be electric by 2025
  • 80% of car sales to be electric by 2030
  • £15,000 fine per non-compliant vehicle sold

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Key developments:

  • Major manufacturers (JLR, Nissan, Stellantis) actively lobbied for mandate relaxation
  • Potential changes include flexibility in meeting targets through credits system
  • 67% of drivers support lowering EV production targets, according to Carwow research

The policy revision reflects broader challenges facing global automakers, particularly increased competition from Chinese manufacturers. The government aims to balance environmental goals with protecting British industry and jobs, with Reynolds stating that progress toward net zero shouldn't come at the expense of British manufacturing.

Possible revisions may include introducing "flexibilities" allowing companies to:

  • Earn credits for missing targets
  • Borrow from future quotas
  • Reduce emissions from existing combustion vehicles

This adjustment represents a significant shift in the UK's green agenda, following other environmental policy modifications including potential support for Heathrow's third runway and defense spending prioritization over green energy initiatives.

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