08 Apr 2025

Government Eases EV Targets Amid US Tariff Pressures

Written by  Shani Brooks

In response to new US trade tariffs, the UK government has announced more flexible electric vehicle (EV) sales targets to ease pressure on car manufacturers. While the 2030 ban on selling new petrol and diesel cars remains, automakers will now have increased leeway in how they meet annual EV targets, and penalties for missing them will be reduced.

Transport Secretary Heidi Alexander confirmed the changes were fast-tracked following the introduction of a 25% US import tax on UK-made cars, a major hit to the nation’s automotive exports. A separate 10% tariff on nearly all UK goods was also introduced last week. The government said it had worked closely with British manufacturers to uphold its climate commitments while introducing realistic reforms to support the industry.

The EV sales target for 2024 sits at 28%, increasing yearly until 2030. Under the new system, manufacturers will be able to offset shortfalls by exceeding targets in future years. Additionally, the fine for each petrol or diesel vehicle sold beyond the quota has been cut from £15,000 to £12,000. Hybrid vehicle sales will be banned from 2035.

Despite the announcement of a £2.3 billion investment in EV incentives and infrastructure, critics argue the measures fall short. Industry voices warn that affordability and charging access remain major obstacles to broader EV adoption.

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