Labour urged to 'remove' 2030 petrol and diesel car ban rules amid growing pressure to support auto sector

The ZEV mandate requires all new petrol and diesel car sales to be electric by 2030, with at least 33 per cent electric by the end of 2026.

Carmakers who fail to meet this requirement could face heavy fines of £12,000 per non-compliant car and £15,000 per van.

Following the decision by the European Commission to relax some of its rules to allow 90 per cent of new cars sold from 2035 to be electric, rather than 100 per cent, Labour has been urged to make a similar move.

The NFDA wrote to Transport Secretary Heidi Alexander in December asking the Government to review the UK's current ZEV targets.

The letter stated: "The NFDA is committed to supporting both the drive to net zero and the Government's economic growth objective. However, we believe that in order to protect the UK's automotive industry, including the franchised dealerships that we represent, we need to ensure that ZEV targets are realistic.

"We think the UK should bring its policy into line with the EU, the UK's largest trading partner and whose manufacturers currently supply most of the vehicles sold in the UK. We are therefore asking that you remove the current 2030 deadline and revise the requirements of the 2035 deadline."

The association has now received a formal response from the Minister for Aviation, Maritime and Decarbonisation, Keir Mather MP.

The Labour MP for Selby acknowledged the vital role of franchised retailers in the UK's EV transition and outlined the Government's ongoing commitment to the ZEV mandate's headline targets.

He highlighted the current support measures in place for the sector, including the extension of the Electric Car Grant, increased funding for charging infrastructure, and proposed reforms to EV taxes.

He wrote: "We continue to monitor announcements regarding CO2 regulation by the European Commission. Our objective is for the UK to remain a genuine leader in the ZEV transition, realising our ambitions for the automotive sector and delivering on our climate commitments.

"We have a long-established commitment to review the ZEV Mandate in 2027 to ensure it continues to deliver on its objectives. In advance of the review, we will begin engagement in 2026, and I welcome the NFDA’s contributions as part of this process."

Sue Robinson, chief executive of the NFDA, said: "We welcome the Minister's recognition of the challenges and opportunities facing our sector as we transition to zero emission vehicles.

"While we support the UK's net zero ambitions, it is vital that the ZEV mandate remains achievable and that retailers and consumers are given the right support to deliver on these targets."

She explained that the group would continue to engage constructively with the Government to ensure "members' voices are heard and that the transition is both fair and sustainable".

Carmakers have already welcomed the move by Europe, with Volkswagen calling the adjustment in targets "economically sound overall".

The German car brand said: "The fact that small electric vehicles are to receive special support in future is very positive.

"It is extremely important that the CO2 targets for 2030 are made more flexible for passenger cars and adjusted for light commercial vehicles."

But Colin Walker, head of transport at the Energy and Climate Intelligence Unit, warned amending the ZEV mandate could risk "jeopardising investments".

"It was Government policy that saw Sunderland chosen to build Nissan's original electric Leaf, and today the latest Nissan EV has started rolling off the production lines in the North East, securing jobs for years to come," he said.