Electric car ZEV mandate rules could be changed (Image: Getty)
is set to U-turn on a previous pledge with ZEV mandate rules
Under the current rules, manufacturers must ensure that a certain amount of vehicle
for 22% of a manufacturer’s fleet with targets rising every year.
Firms face a staggering £15,000 fine for every vehicle over the target unless they purchase credits from other brands ahead of targets.
However, a weaker demand for EVs means to meet the targets, reducing the profits made on each model.
Firms are being forced to discount EVs to meet targets (Image: Getty)
Ministers could now push through the changes to the legislation as part of a “fast-track” consultation after holding talks with car makers last week.
A confirmation is expected to be announced by Business Secretary Jonathan Reynolds at a event on Tuesday evening,
Possible changes could see car brands given further flexibility around the credit system. This could allow sales credits to be transferred between cars and vans.
Updates could also lead to the introduction of new incentives to encourage motorists to secure electric vehicles.
The ZEV mandate rule was introduced by the Conservative Government but Labour has repeatedly stood by the policy.
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Last week, new Transport Secretary Louise Haigh said she would look at “flexibilities” around the ZEV mandate rules but insisted the policy would “not be weakened”.
Car brands have questioned the tough rules with one of Nissan’s top bosses admitting the policy risked “undermining” the business case for manufacturing in the UK.
Guillaume Cartier added: “We now need to see urgent action from the Government by the end of the year to avoid a potentially irreversible impact on the UK automotive sector.”
However, following the two-hour meeting with car leaders, officials seemed to change their approach.
The UK Government announced that further details around the ZEV mandate would be released “in due course”.
This was to ensure the ZEV transition was delivered “in a way that also supports UK economic growth”.
However, it is understood Labour will not change the 2030 petrol and diesel new car sales ban which was a manifesto pledge.
But the Government could face the wrath of energy companies who have called on officials to stand firm.
Energy businesses could lose out if ZEV mandate rules are tweaked as it will likely soften demand for EV charging.
Express.co.uk has contacted DfT for comment.