8 March 2025, 10:05

The government is set to relax electric vehicle mandates following a stark warning from Nissan.

The car manufacturer said that electric vehicle targets posed a risk to its factory in Sunderland.

Under the ‘ZEV’ (zero-emission-vehicle) policy, car manufacturers must meet annual sales targets for electric cars or they will be fined.

The ruling initially focused on manufacturers meeting an annual quota of 80% electric vehicle sales by 2030.

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Business Secretary Jonathan Reynolds said a “substantial change of policy” had been agreed, according to The Times.

“We will do everything we can to make sure Nissan has that secure long-term future in the UK, making sure the business and regulatory environment reflects that.”

Mr Reynolds added: “The whole government is absolutely of the view that you will not get to the progress around net zero and the energy transition that we want to see by closing down British jobs and British industry.”

According to Mr Reynolds, the policy shift is backed by Energy Secretary Ed Miliband – who has faced scrutiny in recent months due to Chancellor Rachel Reeves’ support for a runway expansion at Heathrow Airport.

As carmakers face stiff competition from Chinese firms, manufacturers including Stellantis and JLR have also lobbied the government for a change in the ZEV policy.

Mr Reynolds has not discussed exactly how the policy will be changed.

He said: “For us it’s about being ambitious as to the destination [towards zero emissions] but making sure we’re working with business … to deliver on that ambitious end point.

“We’ve shown a level of pragmatism on that which is essential, and it’s absolutely what Nissan wanted to see.”