The UK announced this Monday it is easing rules on electric vehicles, as the country is planning to back its national industry amid rising global trade tensions.
UK’s Prime Minister Keir Starmer reaffirmed plans to boost EV production, including bringing back the 2030 ban on new petrol and diesel car sales.
The British government issued changes regarding the Zero Emission Vehicle Mandate, aiming to “make it easier for industry to upgrade to electric vehicles while delivering the manifesto commitment to stop sales of new patrol and diesel cars by 2030”, as stated on its website.
Measures Applied
The changes will include tax breaks worth “hundreds of millions of pounds to help people switch to electric vehicles”.
Manufacturers will have more flexibility until 2030, allowing them to sell more cars later “when demand is higher”, and the government will keep encouraging electric vehicle use, “on top of the £2.3 billion” already invested in “boosting British manufacturing and improving charging infrastructure – with a new charge-point popping up every half an hour.”
EV Adoption
Fully electric cars made up one in five vehicles sold during this last month. Hybrid vehicles (HEVs) held a 15.7% market share, while petrol and diesel models remained dominant at 50%.
Across the first quarter of 2025, BEVs accounted for 20.7% of all car sales. When combined with hybrids and plug-in hybrids (PHEVs), new energy vehicles made up 44% of the UK car market.
Government Statements
Starmer said on Monday that “global trade is being transformed so we must go further and faster in reshaping our economy and our country through our Plan for Change.”
“This will help ensure home-grown firms can export British cars built by British workers around the world and the industry can look forward with confidence, as well as back with pride”, Starmer declared.
Transport Secretary Heidi Alexander added that the “ambitious package of strenghtening reforms will protect and create jobs” and make “the UK a global automotive leader in the switch to EVs”.
“Owning and buying an EV is becoming increasingly cheaper, with drivers able to save £1,100 a year compared to petrol if they charge overnight at home”, Alexander mentioned, adding that “half of used electric cars are sold at under £20,000 and 29 brand new electric cars are available from under £30,000.”
Mike Hawes, chief of the UK auto industry group SMMT, called for a comprehensive support package to strengthen manufacturing and supply chains, noting that carmakers directly employ around 200,000 people, with many more jobs linked indirectly.
UK Brands on the Tariffs
According to data from the SMMT, eight in ten vehicles produced in the UK are destined overseas. The US is the second most important market (after the EU), representing almost 17% of car exports in 2024.
In a reaction to the US tariffs on Saturday, Jaguar Land Rover (JLR) stated it is “taking some short-term actions, including a shipment pause in April, as we develop our mid-to longer-term plans”.
Luxury car companies, such as Aston Martin or McLaren, will be allowed to produce petrol cars beyond 2030, given their limited car manufacture per year.
