The UK government has confirmed it will maintain its 2030 deadline for banning new gasoline and diesel vehicle sales, allowing hybrid vehicle sales until 2035, and easing regulations for small manufacturers. This policy shift, developed after extensive industry consultation, is expected to impact the automotive sector positively.
Key elements of the policy include:
- Flexible application of electric vehicle (EV) production targets: Manufacturers will have more leeway in meeting EV production mandates through 2030, allowing them to ramp up sales during high-demand periods.
- Extended hybrid EV sale: Hybrid models, such as the Toyota Prius and Nissan e-Power, may continue to be sold until 2035, providing a longer transition period to full electrification.
- Incentives to boost EV adoption: A range of incentives, including tax breaks, will be introduced to stimulate EV purchases.
- Updated Zero Emission Vehicle (ZEV) mandate: Adjustments to the ZEV policy will give UK manufacturers more flexibility in meeting emission targets.
- Support for loan repayments: The Manufacturer loan capacity will be extended from 2024 to 2026, helping ensure repayments can be made by 2030, in line with phase-out goals.
- Conversion of non-ZEVs: From 2024 to 2026, manufacturers will be permitted to convert non-ZEVs into ZEVs, recognizing the emissions-reduction benefits of hybrid vehicles.
- Credit transfers: Manufacturers can transfer between passenger cars and vans, providing additional compliance flexibility.
- Exemption of small-scale manufacturers: Niche supercar makers like McLaren and Aston Martin will be exempt from ZEV mandates.
- Extended timeline for vans: Internal combustion engine vans will be permitted for sale until 2035.
Transport Secretary Heidi Alexander emphasized that this policy revision aims to protect and create jobs while positioning the UK as a leader in the EV transition. She emphasized measures that consider the practical realities of the automotive industry while maintaining the core objective of phasing out gasoline and diesel vehicle sales by 2030.
