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The Business Secretary Jonathan Reynolds has announced a consultation on the ZEV Mandate targets amid a huge backlash from carmakers.
The government has said it will now consult on the targets, but will stick to the 2030 deadline for phasing out new petrol and diesel car sales.
This week Vauxhall owner Stellantis said it was shutting its plant in Luton in April next year with the loss of 1,100 jobs, partially due to ZEV Mandate pressures.
Business Secretary Jonathan Reynolds has said the government would consult on the ZEV Mandate.
There are flexibilities in the system, allowing manufacturers who can’t meet the targets to buy “credits” from those that can.
The Society of Motor Manufacturers & Traders has called for urgent market intervention as weak demand and unsustainable business costs undermine UK industry. It said carmakers face a £6bn bill to meet ZEV Mandate in first year.
It added that Industry outlook anticipates 116,000 fewer new electric cars and vans will be registered this year compared with expectations when mandate was announced.
And despite an estimated £4bn of discounts consumer demand for electric vehicles was not there.