Manufacturers are calling for the zero-emission vehicle sales mandate to be relaxed. According to the Society of Motor Manufacturers and Traders (SMMT), regulatory uncertainty is affecting decisions on upcoming models and new vehicle generations.

SMMT chief executive Mike Hawes said some manufacturers already operating in the United Kingdom are considering building new models at British plants but have yet to make final commitments. The central issue is the zero-emission vehicle mandate, which requires carmakers to increase the proportion of electric cars they sell each year through 2030. The final shape of the rules has therefore become a key factor in industrial decisions.

The SMMT says companies are waiting for a resolution, particularly an easing of the mandate, before deciding where to allocate their next models and future vehicle generations. In remarks reported by The Guardian, Hawes directly linked investment plans to the regulatory review. The issue therefore concerns not only the pace of electric vehicle sales but also planning at British factories and their ability to secure new production.

The UK automotive industry has strongly pressured the Labour government to reduce the severity of the requirements. Under its current design, the mandate forces manufacturers to place a growing percentage of electric cars on the market each year. Companies are seeking greater flexibility, while the government must balance its automotive transition targets against the demands of an industry that ties production decisions to the commercial viability of the rules.

Jonathan Reynolds, who has returned to lead the Department for Business under Andy Burnham, indicated that the government is likely to soften the mandate. The source does not specify what form the change might take or report a final decision. The scale, timing and method of any revision to the planned increase in electric vehicle sales through 2030 therefore remain uncertain.

The regulatory delay comes at a difficult time for the sector. According to The Guardian, the British automotive industry is simultaneously facing competition from China, US tariffs and the additional costs of investing in electric technologies. These pressures are increasing just as manufacturers must decide which models to build, which plants to upgrade and where to allocate capital for the next generation of cars.

BMW provides a clear example of the cautious climate. The company has postponed plans to produce electric versions of the Mini at its Oxford plant, according to the report. The available Guardian article gives no details about the value of the investment, a revised timetable or the conditions required to restart the project. The delay is nevertheless consistent with the SMMT's account of decisions remaining on hold.

For British factories, securing a new model is strategically important because it determines production continuity across successive generations. Hawes specifically referred to decisions involving the next model and the next generation, arguing that they require the regulatory issue to be resolved. However, the source does not identify the other manufacturers involved, list the plants concerned or quantify the total value of the capital awaiting approval.

The industry lobby presents a relaxation of the mandate as necessary to unlock manufacturers' decisions. This is the SMMT's assessment, however, as reported by a single source, rather than a formal commitment from individual carmakers. The available material contains no direct government statements about the details of the reform, nor confirmation from manufacturers that they would automatically invest in the UK if the requirements were reduced.

The next step will therefore be for the government to define its position on the zero-emission vehicle mandate. According to Hawes, that decision will determine whether some choices concerning new models can be finalized. Two questions remain unresolved: how far the government intends to amend the rules and which investments carmakers are prepared to approve once the uncertainty is cleared. Until those details are made public, the industrial significance of any revision will remain difficult to assess.

— Nora Albrizzi