Top automotive manufacturers operating in the UK, including BMW and Jaguar Land Rover, privately cautioned the government that maintaining strict electric vehicle sales targets would imperil British jobs and deter future investment. These claims were part of an intensive lobbying effort to soften the country’s transition away from fossil-fuelled cars.
According to consultation documents, the carmakers argued that the Zero Emission Vehicle (ZEV) mandate, which requires an increasing percentage of EV sales annually, was financially unsustainable. They pointed to overestimated consumer demand for electric cars, which had forced them into price cuts that, while beneficial for buyers, were eroding their profit margins and ability to reinvest.
The campaign ultimately succeeded. The Labour government introduced new “flexibilities” to the rules in April, effectively allowing manufacturers to sell more petrol vehicles than originally planned. This decision was made despite the fact that every carmaker had successfully complied with the initial 2024 targets, and against advice from the government’s climate advisers who warned of a potential rise in UK carbon emissions.
Advocacy groups have criticised the move, suggesting the industry’s threats were a “cynical tactic.” Ben Nelmes of New Automotive argued that the mandate’s success in 2024 proved the industry was capable of change and that the focus should be on accelerating, not slowing, the shift to cleaner transport. In contrast, the industry maintains the changes were necessary to prevent “de-industrialisation.”