In a move aimed at shielding the UK’s automotive sector from mounting US trade tariffs, the government has announced a significant relaxation of electric vehicle (EV) sales targets for car manufacturers.
The Transport Secretary Heidi Alexander confirmed that while the ban on selling new petrol and diesel cars will still take effect in 2030, carmakers will be granted more flexibility in meeting annual EV sales goals. Additionally, the government is reducing penalties for non-compliance with emissions standards, cutting fines from £15,000 to £12,000 per vehicle.
The announcement comes as the UK automotive industry reels from a 25% import tariff imposed by US President Donald Trump on foreign-made cars — a move that has particularly impacted British manufacturers, for whom the US is the second-largest export market after the EU. This new levy follows a broader 10% tariff on nearly all UK imports introduced last week.
“This isn’t a silver bullet,” Alexander told BBC Breakfast, “but it’s part of the package of solutions to ensure our car industry can weather the storm caused by US trade measures.”
The government said the updated EV target policy, which had already gone through consultation in February, was fast-tracked in direct response to the American tariffs. It has worked in collaboration with UK automakers to ensure that while the commitment to phasing out combustion engine vehicles remains firm, reforms are being implemented to ease the transition.
Under the revised policy, 28% of new cars sold in the UK this year must be electric. However, manufacturers will now be allowed to carry forward or make up shortfalls in EV sales from one year to the next, offering more breathing space amid challenging market conditions.
The ban on hybrid vehicles — which combine fossil fuel engines with electric motors — has also been reaffirmed for 2035. However, smaller British marques like Aston Martin and McLaren will be permitted to continue selling petrol-powered vehicles beyond 2030 due to their limited market impact.
To further support the sector, the government is offering £2.3 billion in tax breaks, a move praised by the Society of Motor Manufacturers and Traders (SMMT) as “very much needed.”
Yet critics say the measures don’t go far enough. Robert Forrester, CEO of Vertu Motors, called the announcement “tinkering” and said the reforms fail to address major hurdles such as high EV costs and insufficient charging infrastructure. “Manufacturers will still pay billions in fines — this doesn’t solve the core problem,” he added.
Opposition figures also voiced concerns. Shadow Business Secretary Andrew Griffith dismissed the reforms as “half-baked,” while the Liberal Democrats called for stronger consumer incentives to increase EV uptake.
Jaguar Land Rover announced it will “pause” US shipments this month to review the new trading terms, signalling deeper disruptions to come as the industry navigates the evolving trade landscape.
