UK Considers Easing EV Sales Rules, Allowing Hybrid Models After 2030

The UK government is exploring options to soften its electric vehicle (EV) sales requirements, which could allow carmakers to continue selling Prius-style hybrid vehicles until 2035, the Financial Times reports.

This potential shift comes after warnings from the car industry about job losses and challenges in meeting the country’s strict zero-emissions vehicle (ZEV) mandate.

As part of an ongoing consultation launched this week, ministers are considering what types of vehicles carmakers can sell following the 2030 deadline, which bans the sale of new petrol and diesel cars. One option under discussion is the inclusion of “full hybrid” models—vehicles that use both an engine and a battery in parallel but do not rely on plug-in charging. These hybrids, popularized by the Toyota Prius, can significantly reduce emissions but are not capable of driving solely on battery power for long distances.

Though former transport secretary Louise Haigh had been receptive to the idea of allowing these full hybrids after 2030, her sudden resignation over a 2014 criminal conviction is not expected to disrupt ongoing government discussions. However, some within the government remain cautious, warning that allowing full hybrids to remain on sale could undermine the transition to fully electric vehicles.

The car industry has raised concerns that the current ZEV mandate, which requires automakers to increase their percentage of zero-emission sales from 22% this year to 80% by 2030, is too aggressive. With EV sales falling short of expectations, allowing full hybrids to be sold after 2030 is seen by some as a “safety net” for manufacturers struggling to meet the target.

The ZEV mandate has been criticized for its potential impact on jobs in the automotive sector. Companies like Stellantis and Ford have already announced job cuts, citing weak EV sales and the pressures of the ZEV mandate. Nissan has also expressed concerns about potential job losses unless the mandate is relaxed.

Under the current scheme, automakers face fines of £15,000 for each missed zero-emission vehicle target, and many have resorted to buying credits from other manufacturers that are ahead of schedule. This has led to calls for increased flexibility within the system. The government is considering expanding the “trading” loophole that allows manufacturers to purchase credits, as well as providing leeway for companies to miss early targets without incurring penalties, provided they commit to meeting future goals.

The hybrid vehicle debate is central to the consultation, with carmakers like Toyota, Honda, and Hyundai—who have strong hybrid offerings—keen to maintain their sales in the UK. The government is expected to explore what types of hybrid vehicles should be allowed during the transitional period after 2030, including whether plug-in hybrids should be required.