UK car industry calls for ‘meaningful’ watering down of EV targets after latest slump in production
UK car manufacturers are urging the Government to substantially relax electric-vehicle sales targets and cut energy costs after production fell again in July. The industry says it faces pressure from weak overseas demand, global competition and potential trade barriers with the EU, while missing EV targets could expose companies to fines.
UK production fell 10.6% year on year to 61,767 vehicles in July, leaving output 4.7% lower so far this year at 433,523. Electric and hybrid production rose 6.8% to 25,678 vehicles, accounting for over 40% of cars made, but EVs represent only one in four new cars sold this year against a 33% target for 2026; the target is set to reach 80% by 2030 under current rules.
- UK car production fell 10.6% in July.
- Manufacturers want EV-target reforms and lower energy costs.
- Electric and hybrid vehicle production nevertheless increased.
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The UK’s zero-emission vehicle rules require carmakers to sell a rising share of electric cars, with a 33% target for 2026 and 80% by 2030. Companies that fall short can face fines, while the share of new cars sold that are electric is currently below the 2026 target.
Car production has been under pressure from weaker demand abroad and competition from overseas manufacturers. The industry also says high energy costs and possible trade barriers with the European Union add to the difficulties; the rules governing trade between the UK and EU matter because many carmakers operate across both.
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The case for
UK car manufacturers face genuine economic pressures—production has fallen sharply, overseas demand is weak, and global competition intensifies whilst energy costs rise. Maintaining ambitious EV targets whilst the industry contracts risks triggering fines that further damage already-struggling companies and incentivise relocating production abroad. A more realistic, achievable transition allows manufacturers to invest in EV capability and remain competitive internationally, ultimately serving both industrial sustainability and the long-term environmental transition better than unachievable mandates.
The case against
The UK's net-zero commitments are legally binding and environmentally urgent; the EV transition is essential to decarbonise transport. Current targets reaching 80% by 2030 are modest internationally and align with climate necessity. If targets are relaxed during every cyclical downturn, manufacturers lack genuine incentive to invest properly in EV technology, and Britain falls further behind competitors in this decisive sector. Energy costs are a separate issue addressable through independent support; maintaining ambitious targets, with targeted assistance, serves both climate responsibility and long-term competitiveness.