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The Markets
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Manufacturing & engineering

EV sales targets come under government review

Targets requiring carmakers to make up a proportion of sales annually with electric vehicles (EVs) have come under review in the UK.

Manufacturers will have eight weeks to submit views on the zero emission vehicle mandate under a consultation by transport secretary Heidi Alexander.

Firms have warned over job losses due to the targets as they struggle to avoid fines against muted demand for EVs.

Both Ford Motor Company (NYSE:F) and Stellantis NV (NYSE:STLA, EPA:STLA)-owned Vauxhall previously cited the rules upon announcing job cuts recently, with the latter set to close its van factory in Luton.

Under these, carmakers have to ensure that electrics account for 22% of their sales this year, before the target increases annually to 100% come 2035.

However, EVs have made up only 18% so far this year, which is the first year of the mandate.

Britain’s new Labour government has also previously pledged the bring forward the effective ban on new petrol and diesel car sales to 2030, in line with a previous target.

This is not expected to be altered, with the government instead mulling adding hybrids and flexibilities to the scheme, such as by further allowing carmakers to trade credits to avoid fines.

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