Background

The ZEV Mandate, enacted by the previous Conservative government, requires car manufacturers to sell a certain percentage of electric vehicles (EVs) each year, with the goal of reaching 80% of total car sales by 2030. However, the car industry has been pushing for a relaxation of these targets, citing concerns over the feasibility of meeting such ambitious goals.

The government's decision to relax the ZEV Mandate requirements is seen as a compromise between the need to reduce carbon emissions and the need to support the UK's automotive industry. Business Secretary Jonathan Reynolds stated that the whole government shares the view that progress on net zero and the energy transition cannot be achieved by closing down British jobs and industry.

Implications

The relaxation of the ZEV Mandate requirements is likely to have significant implications for the UK's automotive industry. Car manufacturers such as Nissan, which has been investing heavily in EV production, may be able to breathe a sigh of relief as they will no longer be required to meet such stringent targets. However, environmental campaigners may be disappointed by the move, which they see as a step backwards in the fight against climate change.

The government's decision may also have implications for consumers, who may see a slower rollout of EVs in the UK market. However, the government has also announced plans to provide incentives to encourage consumers to switch to EVs, which could help to drive demand for these vehicles.