Ministers are preparing to reduce financial penalties on carmakers who fail to meet their targets for electric vehicle (EV) sales amid warnings that current plans risk crippling the industry.
From January, car manufacturers will have to ensure that 28 per cent of the cars and 16 per cent of the vans they sell are electric or incur a £15,000 penalty for each vehicle outside the target.
However, ministers will announce plans on Tuesday to consult on changes to the scheme, given that targets could lead to job cuts and even the closure of some car plants.
This is expected to include new “flexibilities” to reduce financial penalties on individual car manufacturers that fail to meet their target in a single year.
The targets themselves will