The government has confirmed that the sale of new petrol and diesel cars will end in 2030, but has quietly softened the rules in a move that amounts to a significant climbdown.
Despite maintaining the phase-out date in name, the revised Zero Emission Vehicle (ZEV) Mandate gives carmakers far more flexibility to delay switching to electric vehicles, as ministers respond to slower-than-hoped uptake and pressure from the auto industry.
While the headline ban remains, hybrid cars — including full and plug-in models — will now be allowed on the market until 2035, providing a longer runway for manufacturers and consumers alike.
Small and niche-volume producers, such as luxury and supercar brands like McLaren and Aston Martin, will be exempt from the mandate entirely, shielding some of the UK’s best-known automotive names from immediate pressure.
Today I am announcing bold changes to the way we support our car industry.
This will help ensure home-grown firms can export British cars built by British workers around the world and the industry can look forward with confidence, as well as back with pride.
Kier Starmer
The updated policy reflects growing concerns in government over stalling demand for electric cars.
Although EV sales rose by 41% in March year-on-year, the increase still falls short of expectations needed to meet longer-term climate targets.
Industry figures and market analysts have warned that high upfront costs, limited public charging access and broader economic uncertainty are holding back mainstream consumers.
In an effort to address these issues without fully walking back its environmental commitments, the government is loosening how the ZEV targets are enforced.
Goalposts moved
Manufacturers will now have more freedom to borrow and repay ZEV credits through to 2030 and will be allowed to shift credits between cars and vans.
There are also new allowances for rewarding CO2 savings from hybrid vehicles, and a significant extension to credit transfer flexibilities previously scheduled to end in 2026.
Labour says the change aims to help British manufacturers grow and working people save money.
Chargepoint subsidy
Backed by £2.3 billion in public investment, the strategy includes ongoing support for charge point expansion, with a new charger reportedly added every 30 minutes and tax incentives to reduce EV ownership costs.
The government is also preparing a broader Industrial Strategy, expected later this spring, to support clean energy and green technology sectors.
Back tracking
Nonetheless, today’s announcement is a clear signal that ministers are prioritising economic pragmatism over rigid environmental timelines.
By providing breathing space for carmakers and acknowledging consumer hesitation, the government appears to be shifting its focus from setting hard deadlines to enabling a more flexible, market-driven transition.
With £6 billion of private capital lined up for EV infrastructure and more than 75,000 public chargers already installed, the government insists momentum is building.
But the latest revisions underscore the challenges ahead in convincing both industry and the public to make the electric switch at scale.
