Prime Minister Keir Starmer is expected to ease restrictions on hybrid car sales, originally set to take effect in 2030, following growing concerns that stringent electric vehicle (EV) targets are putting undue pressure on manufacturers.
In late 2024, the government introduced a strict CO2 emissions cap of 115g/km per vehicle, set to take effect from 2030. This new regulation could have posed a significant challenge for hybrids such as the Ford Puma, Volkswagen Golf, and Nissan Qashqai.
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The Society of Motor Manufacturers and Traders (SMMT) has been advocating for a more flexible approach, emphasizing that hybrid, plug-in hybrid, and hydrogen-powered vehicles are crucial for the UK’s transition to zero-emission transport. Manufacturers like Toyota argue that restricting hybrid sales would discourage investment just as the industry ramps up EV production. Furthermore, they contend that hybrids serve as an important bridge to full EV adoption, particularly in regions with limited charging infrastructure.
In addition, the SMMT is pushing for tax incentives, such as VAT relief, to stimulate EV demand and help the UK meet its zero-emission vehicle (ZEV) targets. According to the group, such measures could increase EV sales from 1.8 million to over 2 million vehicles between 2025 and 2027.
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The government now faces the challenging task of balancing the need to reduce emissions with the necessity of maintaining the competitiveness of the UK’s auto industry.
