In a determined effort to retain Nissan’s manufacturing presence in Britain, Business Secretary Jonathan Reynolds has vowed to implement “substantial change” to the country’s electric vehicle (EV) sales targets.
Speaking during a visit to Nissan’s sprawling headquarters on the outskirts of Tokyo, Mr Reynolds assured senior executives that the Government was prepared to revise the so-called zero emission vehicle (ZEV) mandate to address concerns voiced by carmakers. Following the meeting, he said “a substantial change of policy” had been agreed, according to reports in The Times.
Mr Reynolds commented: “We will do everything we can to make sure Nissan has that secure long-term future in the UK, making sure the business and regulatory environment reflects that. The whole Government is absolutely of the view that you will not get to the progress around net zero and the energy transition that we want to see by closing down British jobs and British industry.”
Although the Business Secretary declined to specify the precise nature of the changes discussed, insiders indicate that “nothing is off the table.” However, government sources swiftly countered the idea of an official change in stance, insisting there is “no alteration” to the headline targets of the ZEV mandate—though they have long hinted that “more generous flexibilities” could be introduced to accommodate manufacturers.
Carmakers including Nissan, Ford and Stellantis (owner of Vauxhall) have criticised the stringent nature of the ZEV mandate. In particular, the potential £15,000-per-car fine for failing to meet set EV sales targets has been described as excessive, especially at a time when consumer demand for electric cars has not yet caught up with official ambitions.
At present, 28 per cent of new cars sold in the UK must be fully electric by 2025—a figure set to rise steadily to 80 per cent by 2030. While these milestones remain in place, the Government has hinted that the penalties for non-compliance could be eased and has suggested that existing “flexibilities” may be expanded.
Industry insiders also believe ministers are assessing how to reduce the scale of fines. The Society of Motor Manufacturers and Traders (SMMT) has further urged the Government to boost consumer interest by cutting taxes on EV purchases and equalising VAT rates for drivers who rely on public charging points and those who charge at home.
Despite recent efforts—including £4.5bn worth of discounts last year—electric vehicles still only account for one in ten new cars purchased by private owners. With Nissan poised to produce the latest incarnation of its popular Leaf model in Sunderland, its executives have warned that inflexible regulations could undermine the viability of British manufacturing if consumer demand remains tepid.
As the debate continues, Mr Reynolds maintains that ensuring a stable, competitive, and forward-looking environment for UK carmakers is paramount. Whether through softened penalties or expanded “flexibilities,” the Government’s proposed “substantial change” aims to secure Britain’s future in an automotive market increasingly defined by the transition to net zero.
Jamie Young
Jamie is Senior Reporter at Business Matters, bringing over a decade of experience in UK SME business reporting.
Jamie holds a degree in Business Administration and regularly participates in industry conferences and workshops.
When not reporting on the latest business developments, Jamie is passionate about mentoring up-and-coming journalists and entrepreneurs to inspire the next generation of business leaders.
