British Prime Minister Keir Starmer announced changes to the country’s zero-emission vehicle (ZEV) targets, easing requirements on automakers and extending the sale of hybrid vehicles through 2035 in response to global trade uncertainties, including tariffs imposed by U.S. President Donald Trump.
While maintaining the 2030 deadline to phase out new petrol and diesel vehicles, the UK government will allow continued sales of full and plug-in hybrids—such as the Toyota Prius and Nissan e-Power—for five additional years. The updated policy also exempts low-volume manufacturers, including McLaren and Aston Martin, from the ZEV mandate in an effort to protect Britain’s luxury automotive and engineering sectors.
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“Global trade is being transformed so we must go further and faster in reshaping our economy,” Starmer said in a statement while presenting the revised plan.
The move comes amid growing pressure on British exporters from rising U.S. tariffs. The United States is the second-largest market for British-made vehicles after the European Union, with over one million cars exported to the U.S. in 2024, valued at approximately £7.6 billion ($9.79 billion).
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Starmer said the UK remains committed to securing a trade agreement with the United States that could include tariff exemptions but indicated that the government is prepared to act if necessary. He said the government is ready to “shelter” British businesses from the effects of Washington’s new trade policies.
The announcement follows slowing private adoption of electric vehicles in the UK, despite growth in overall EV sales last year. Commercial and fleet buyers accounted for most of the demand, with only one in ten individual customers opting for electric cars. In March, EVs represented 19% of all new car sales, falling short of the 28% target projected under the ZEV mandate for 2025.
Source: Reuters