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by
AnhNguyen
- April 10, 2025
The UK government has softened its Zero Emission Vehicle (ZEV) Mandate in response to global trade tensions triggered by former U.S. President Donald Trump’s 25% tariff on imported vehicles. The revised rules aim to protect Britain’s auto sector while maintaining momentum toward its ESG and carbon neutral strategy targets.
Key changes include reduced fines for automakers missing EV targets, exemptions for low-volume luxury carmakers like Aston Martin and Bentley, and a five-year extension on hybrid vehicle sales until 2035. Despite these adjustments, the 2030 phase-out date for new petrol and diesel vehicles remains unchanged. The government is also backing the transition with a £2.3 billion support package for EV manufacturing and adoption, alongside £6 billion in private investments for charging infrastructure.
Transport Minister Heidi Alexander emphasized the need to shield British businesses from global trade disruptions, while Prime Minister Keir Starmer reaffirmed the UK’s pursuit of a U.S. trade deal. U.S. tariffs have already impacted automakers like Jaguar Land Rover, which temporarily paused U.S. shipments to mitigate financial fallout. In 2023, the UK exported one million vehicles worth £7.6 billion to the U.S., underscoring the sector’s vulnerability.
Industry reactions have been mixed. Mike Hawes of the Society of Motor Manufacturers and Traders (SMMT) welcomed the policy shift but urged for broader government support to maintain competitiveness. Others, including Ian Plummer of Auto Trader and Sue Robinson of the National Franchised Dealers Association, called for consumer incentives like VAT cuts on EV charging to boost demand.
Critics argue that extending hybrid and diesel van sales may slow the shift away from internal combustion engines. Fleet operators warn that inadequate infrastructure and unclear policy signals risk derailing progress toward the UK’s carbon neutral strategy.
Ultimately, industry leaders agree: regulatory flexibility must be matched with investment, incentives, and EU policy alignment to ensure sustained progress toward ESG goals.
Sources:
https://esgnews.com/uk-softens-ev-mandate-to-shield-auto-industry-from-trump-tariffs/
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