The United Kingdom government has announced a revised strategy to assist the domestic car industry in transitioning to electric vehicles (EVs).
The strategy introduces more flexible compliance timelines and targeted exemptions in response to shifting global trade dynamics and rising economic pressures.
Prime Minister Keir Starmer addressed the developments and expressed readiness to intervene in sectors affected by what he described as “global economic headwinds.” He later laid out a series of policy adjustments to bolster Britain’s auto manufacturing capacity while supporting the transition to cleaner transportation.
A central element of the revised policy framework is the reaffirmation of the 2030 ban on new petrol and diesel vehicle sales, with a further allowance for hybrid vehicles to be sold until 2035.
However, under the government’s plan, small and specialist manufacturers—such as luxury automakers Aston Martin and McLaren—will be exempt from these mandates. Furthermore, internal combustion engine vans will be permitted for sale until 2035, recognizing logistical and commercial needs within the transport sector.
Significantly, the government announced it would ease interim EV production targets for manufacturers. Companies falling short of annual electric vehicle production benchmarks between now and 2026 will not be penalized, provided they can compensate for the shortfall by meeting cumulative targets before 2030.
“Global trade is being transformed,” said Prime Minister Starmer. “So we must go further and faster in reshaping our economy and our country. This will help ensure home-grown firms can export British cars built by British workers worldwide.”
A new 25 percent tariff imposed by the United States on imported vehicles has already impacted UK firms. Jaguar Land Rover (JLR), the country’s largest automotive employer in the premium vehicle category, announced on Saturday that it would pause shipments to the US market beginning in April while it assesses the new trade conditions.
JLR cited the “new trading terms” as a key reason for the temporary suspension, a move that underscores the immediate ramifications of Washington’s protectionist shift.
While the UK is not directly subject to the tariffs in the same manner as some other exporters, British manufacturers with global supply chains and international markets, particularly the US, are feeling the pressure.
To support the transition and insulate the sector from further disruptions, the UK government highlighted its prior commitment of £2.3 billion to accelerate EV production.
This funding is earmarked for battery innovation, supply chain development, and the scaling up of manufacturing facilities. Sunday’s announcement reaffirmed this commitment while suggesting that further support could be mobilized depending on the evolving impact of international tariffs and market shifts.
The government noted that the full support package would be subject to ongoing review as further consequences of the US tariffs become evident. With the UK auto industry contributing £19 billion annually to the national economy and directly employing 152,000 people, the sector is considered strategic not only for its economic footprint but also for its role in achieving the UK’s climate targets.
