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Home»Automotive»Government throws industry £2.3bn lifeline and greater flexibility to support EV switch
Automotive

Government throws industry £2.3bn lifeline and greater flexibility to support EV switch

Aimee TurnerBy Aimee TurnerApril 6, 2025No Comments2 Mins Read
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Government Throws Industry £2.3bn Lifeline And Greater Flexibility To Support
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The 2030 phase-out date for brand new petrol and diesel cars has been officially reinstated and full and plug-in hybrid vehicles might be sold until 2035 as a part of a brand new multi-billion pound package of presidency reforms and funding to support the transition to zero-emission vehicles and take the pressure off manufacturers.

“We’re giving British carmakers certainty and stability, while helping working families make the switch to zero-emission vehicles,” confirmed a government spokesman.

At the guts of the plan is a £2.3 billion investment designed to support each manufacturers and drivers. This includes funding through the Automotive Transformation Fund, accelerated rollout of the UK’s charging infrastructure, and targeted support for ZEV vans, trucks, and motorcycles.

The federal government also confirmed that fines for missing annual ZEV sales targets under the Mandate shall be reduced by 20%, to £12,000 per automotive and £15,000 per van. Moreover, increased flexibility shall be introduced, including credit borrowing between years, to assist firms stay compliant without immediate penalties.

Acknowledging calls from manufacturers during a recent consultation, which drew over 600 responses, the federal government can be introducing greater regulatory leniency:

  • Hybrids Prolonged: Between 2030 and 2035, full and plug-in hybrids, resembling the Toyota Prius and Range Rover Evoque PHEV, can still be sold.
  • Supercar Exemptions: Small and micro-volume carmakers like McLaren, Lotus, and Caterham shall be excluded from the ZEV Mandate entirely, preserving Britain’s high-performance vehicle industry.
  • Utility Factor Rule Delay: The UK will delay adopting stricter EU emissions calculations for plug-in hybrids until 2030, allowing current standards to stay in place and offering certainty for manufacturers.

The updated framework confirms that petrol and diesel vans can proceed to be sold until 2035 without added technological requirements. Van makers will only need to keep up 2021 emissions levels through the transition period. Meanwhile, small-volume van makers will receive tailored CO2 reduction agreements, and micro-volume firms will remain exempt.

The Government said the changes aim to balance environmental targets with economic realities, allowing the UK to remain heading in the right direction for all latest cars and vans to be zero emission by 2035, while avoiding industry disruption within the face of world economic headwinds.

“Manufacturers and consumers asked for clarity, and we’re delivering it,” said a government spokesperson. “We’re confident this shall be welcomed across the sector, protect jobs, and unlock future investment.”

 

This Article First Appeared At www.am-online.com

2.3bn Flexibility government Greater Industry lifeline Support switch throws
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