Carmakers ‘delaying investment in UK factories until EV sales rules relaxed’
Summary
Car makers in the UK are waiting for the government to relax rules that require more electric car sales before they invest in new factories. The government is considering weakening these rules to support the industry, which is facing challenges like competition from China and extra costs for electric car technology.Key Facts
- The UK government enforces a rule called the zero emission vehicle mandate, which requires car makers to sell more electric cars each year until 2030.
- The Society of Motor Manufacturers and Traders (SMMT) says car makers are delaying investments until this rule is eased.
- Business Secretary Jonathan Reynolds has said the government will likely soften the mandate.
- UK car production dropped by 7.5% in the first half of 2026 compared to last year.
- Some companies that might delay investment include Toyota, Mini, Nissan, and Jaguar Land Rover.
- The UK’s trading relationship with the EU affects car makers, especially if tariffs are applied or if batteries must be sourced from Europe.
- The electric car charging industry and environmental groups oppose weakening the mandate due to concerns about increased carbon emissions.
- The EU is also reviewing subsidy rules for cars made in Europe, which may affect UK manufacturers.
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