The UK’s electric vehicle plans are not working as intended, Business Secretary Jonathan Reynolds admitted at an annual meeting on Tuesday night.
Speaking to car manufacturers at the Society of Motor Manufacturers and Traders (SMMT) annual dinner, Reynolds said he was “profoundly concerned” about how the Zero Emissions Mandate meant to phase out new petrol and diesel vehicles were operating.
The announcement coincided with car maker Vauxhall revealing plans to shut its Luton van-making plant, putting 1,100 jobs at risk, citing the UK’s stringent zero-emission vehicle mandate as a key factor.
Reynolds told the SMMT he would launch a fast-track consultation on changes to the zero-emission vehicle mandate, promising clarity within weeks.
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The Business Secretary spoke to the SMMT last night about concerns surrounding the ZEV mandate
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He said: “I’m going to be frank with you – I don’t believe the policies that we have inherited, and I mean specifically in relation to zero-emission vehicles, are operating today in a way anyone intended them to. We get the seriousness of the situation and we get the urgency.”
The Business Secretary emphasised that the Government remained “absolutely committed” to the 2030 target for phasing out new petrol and diesel vehicles.
Now the Government has pledged to continue backing the automotive industry with over £300million to drive uptake of zero-emission vehicles.
An additional £2billion has been committed to support the transition of domestic manufacturing. But pro-EV groups have urged the Government not to weaken its ambitions.
The concerns come after Stellantis, owner of Vauxhall, announced it would consolidate its UK manufacturing operations by creating an all-electric hub at its Ellesmere Port plant in Cheshire, where it plans to invest £50million. The move will see the closure of its Luton van-making facility, affecting 1,100 jobs.
SMMT chief executive Mike Hawes described the news as “worrying and grave,” particularly following Ford’s recent announcement to cut 800 jobs from its UK operations.
“We’ve seen announcements globally of production cuts, profit warnings, job losses and the UK was never going to be immune,” Hawes said.
The decision was explicitly linked to the context of the UK’s zero-emission vehicle mandate requirements, according to reports.
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Under the current ZEV mandate, car makers must achieve an electric vehicle sales mix of 22 per cent in 2024, rising to 80 per cent by 2030, or face heavy fines. However, EV sales are projected to reach only 18.5 per cent market share this year.
Ford UK’s managing director Lisa Brankin welcomed the review, saying: “The end goal is not in question, but current demand for electric vehicles is lower than expected.”
Nissan has also called for urgent changes, warning the mandate risks “undermining the business case” for UK manufacturing and threatening thousands of jobs and billions in investment.
Stellantis plans to have its consolidated production line at Ellesmere Port operational by the second half of 2026. The company has promised hundreds of permanent jobs at the Cheshire site for Luton staff willing to relocate.
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Vauxhall said it would consolidate its Luton van-making facility
Vauxhall
Quentin Willson, founder of FairCharge, said: “Ministers should not dilute the UK’s EV ambitions. Long-term government policy has made us the second-most successful EV market in Europe – an advantage we should strengthen, not weaken.”