Rules requiring carmakers to make up a proportion of sales with electric vehicles could be dialled down as companies grapple to hit targets against lacklustre demand.
Britain’s government on Tuesday firmed up plans to consult on the mandate, coinciding with news Vauxhall would close its factory in Luton, risking 1,100 jobs.
Business secretary Jonathan Reynolds told companies that a consultation on the rules would be fast-tracked at trade body the Society of Motor Manufacturers & Traders’ annual dinner.
"We get it. We get the seriousness of the situation and we get the urgency,” he said.
“I’m going to be frank with you. I don’t believe the policies that we have inherited, and I mean specifically in relation to zero-emission vehicles, are operating today in a way anyone intended them to.”
The rules mean carmakers risk fines if 22% of sales are not made up of electric models this year, with the figure set to rise annually to 100% by 2035.
Britain’s new Labour government has pledged to bring the date forward to 2030 though, in line with the UK’s previous target to phase out petrol and diesel car sales.
A spokesperson reiterated the 2030 target, with flexibilities within the mandate said to be under consideration instead, alongside the likes of incentives to encourage demand.
Vauxhall parent Stellantis NV (NYSE:STLA, EPA:STLA)’s plans to shut its Luton van-making factory follow Ford’s announcement last week that it would shed 800 roles in the UK under sweeping cuts across Europe.