Overview

• The UK government has reinstated the 2030 ban on new petrol and diesel cars but extended the sale of hybrids and plug-in hybrids until 2035.
• Small and micro-volume manufacturers, including luxury brands like Aston Martin and McLaren, are exempt from strict EV mandates beyond 2030.
• Fines for missing EV sales targets have been reduced from £15,000 to £12,000 per vehicle, with expanded credit trading options for manufacturers.
• A £2.3 billion investment package will enhance EV production and charging infrastructure, with a new charge point planned every 30 minutes.
• The policy changes respond to US-imposed tariffs and weak consumer demand for EVs, aiming to balance environmental goals with economic competitiveness.