On April 6, the UK government announced a relaxation of mandatory annual electric vehicle (EV) sales targets for automakers to support the domestic automotive industry’s transition to electrification. While the 2030 ban on new petrol and diesel car sales remains intact, companies will now have greater flexibility in adjusting their EV sales ratios across multiple years to avoid hefty fines.

Prime Minister Keir Starmer has pledged to reduce non-compliance penalties from £15,000 (approximately ¥141,000) to £12,000 (approximately ¥113,000) and invest £2.3 billion (approximately ¥21.68 billion) in tax incentives for EV purchases and charging infrastructure development. Additionally, small UK manufacturers like Aston Martin and McLaren will be allowed to continue producing petrol cars beyond 2030, and some hybrid models can be sold until 2035.

This move is widely seen as a response to the US government’s newly imposed 25% tariff on car imports. The US is the UK’s second-largest export market for vehicles, and Jaguar Land Rover has already announced a temporary halt to shipments to the US in April. The UK government has stated that it will continue to assess the policy’s impact on the industry and make adjustments as necessary.

This strategic flexibility aims to mitigate the economic pressures from US tariffs while ensuring a smoother transition to a greener automotive future.