Lead

Carmakers are delaying final decisions to invest in UK factories until electric car sales rules are relaxed, according to the head of the British car industry's lobby group. Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders (SMMT), said manufacturers with existing UK operations were considering building new models but had held back so far.

The comments come as the British car industry pressures the Labour government to weaken the zero-emission vehicle (ZEV) mandate, which forces manufacturers to sell an increasing share of electric cars each year up to 2030. Business secretary Jonathan Reynolds, who has returned to the role under Andy Burnham, has indicated that the mandate is likely to be watered down.

Coverage comparison

Two distinct strands of the story emerged in the same outlet's reporting. The first details the SMMT chief executive's remarks on investment delays. Hawes said manufacturers were waiting for the mandate to be eased before committing to next-generation models. "They're waiting for the mandate, certainly," he said. "There's investment decisions on next model, next generation, which need a resolution, need an easing of the mandate."

The second strand reveals that major carmakers privately lobbied the UK government to revoke a ban on new petrol and diesel cars after 2035, according to documents obtained by The Fast Charge newsletter via a freedom of information request and shared with The Guardian. The 2035 ban on sales of new petrol and diesel cars is described as a cornerstone policy in cutting the UK's carbon emissions.

Key claims

  • Car makers are delaying final investment decisions in UK factories until electric car sales rules are relaxed, according to Mike Hawes, chief executive of the SMMT.
  • The British car industry has put heavy pressure on the Labour government to weaken the zero-emission vehicle mandate, which requires an increasing share of electric car sales each year to 2030.
  • Business secretary Jonathan Reynolds has indicated that the government is likely to water down the mandate.
  • UK vehicle production fell 7.5% in the first half of 2026 compared with a year earlier, with factories producing 386,000 cars and commercial vehicles, according to SMMT figures published on Thursday.
  • The industry's struggles include competition from China, US tariffs, and the extra costs of investment in electric technology.
  • Calls for easing come as government data shows that the switch to electric vehicles is the single biggest contributor to cutting UK carbon pollution in the next decade, according to the government's Climate Change Committee.
  • Four major carmakers – BMW, Ford, Nissan and Toyota – plus parts maker Bosch wrote a joint letter to ministers in April calling for an "open technology approach" including petrol and diesel cars after 2035, which would allow "highly efficient ICE [internal combustion engines], hybrids, plug-in hybrids, range extenders and combustion engines when utilising green steel and sustainable fuels".
  • A government spokesperson said the 2035 ban was not up for negotiation. However, successive governments have weakened battery EV policies; Labour has already introduced "flexibilities" into electric vehicle targets that run up to 2030, and further changes are being considered after lobbying by carmakers.
  • Hawes declined to name companies waiting for the government to relax the rules, but they may include Toyota, which has manufactured the Corolla in Derbyshire since 2019, and Mini, which has postponed plans to build electric models at its Oxford plant. Nissan is in talks to build a car at its Sunderland plant.
  • The proposal to revoke the 2035 ban drew criticism from campaigners and from Polestar, an EV brand. Matt Galvin, managing director of Polestar UK, said: "Reversing the transition to pure electric vehicles in the middle of a climate emergency would be a historic policy failure. The technology exists, consumers are embracing it and the economic case is becoming stronger every year."

Perspectives

The car industry, represented by the SMMT, argues that the mandate needs easing to unlock investment. Mike Hawes said manufacturers need "a resolution" and "an easing of the mandate" before committing to new models, pointing to the industry's struggles with competition from China, US tariffs, and the extra costs of electric investment.

The government has not commented on the mandate watering down in the articles, but a spokesperson said the 2035 ban was not up for negotiation, while business secretary Jonathan Reynolds has indicated the mandate itself may be relaxed.

Environmental campaigners and the electric car charging industry oppose any further changes, with the charging industry "strongly opposed" and campaigners "aghast" that the government would consider a policy that would result in millions of tonnes of extra carbon emissions.

Polestar, an EV manufacturer, also criticised the lobbying, with its UK managing director warning that reversing the transition would be a "historic policy failure" in the middle of a climate emergency.