Sir Keir Starmer is poised to relax a planned ban on popular hybrid cars amid warnings that electric vehicle (EV) sales targets are squeezing manufacturers too tightly.

The Department for Transport was expected to ban some hybrids from sale after 2030, when selling pure petrol and diesel cars will also become illegal. However, sources said it was reconsidering the plans following intensive lobbying by the industry.

The proposed rules would have prevented the sale of popular hybrid models such as the Range Rover Evoque and Ford Puma, The Telegraph previously disclosed, owing to concerns that they still have high CO2 emissions. Other, less polluting hybrids would remain available between 2030 and 2035.

Following warnings from carmakers that the move could hurt investment, a Whitehall source on Thursday suggested that the Government is now open to allowing more hybrids to be sold up until 2035.

They said ministers were listening to industry concerns, adding: “When we said everything was on the table, we meant it.”

The option of allowing continued sales of a wider range of hybrids was “100pc” being discussed, the source added, although they stressed no decisions had been made yet.

Jonathan Reynolds, the Business Secretary, promised “substantial changes” following a meeting last week with Japanese giant Nissan, which operates a large factory in Sunderland.

On Thursday, the Society for Motor Manufacturers and Traders (SMMT) called for “recognition of the role that all technologies – including hybrids, plug-in hybrids and hydrogen – have to play in decarbonising road transport, as either stepping stones towards, or full delivery of, a zero tailpipe emission market by 2035”.

It is understood that carmakers have warned Sir Keir’s Government that restrictions on hybrids of any kind between 2030 and 2035 would hurt investment in the UK.

The SMMT is also calling for tax breaks to stimulate demand for EVs, arguing that providing VAT relief could boost sales from 2025 to 2027 from 1.8m to more than 2m.

Major manufacturers including Japanese giant Toyota, which makes the Prius, have championed hybrids as a way of hedging their bets against slower-than-expected EV adoption across Europe.

Most companies lose money on EVs but still make healthy profits on hybrids, particularly luxury models.

The Department for Transport’s proposed restrictions, unveiled in December, was designed to prevent a situation where some large, heavy hybrids remained on sale in the UK from 2030 even though they generate higher carbon emissions than the most efficient petrol cars.

To solve this contradiction, it proposed using either technical definitions, emissions limits, average fleet emission limits, or some combination of the three to rein in sales of more polluting models.

Under one possible approach, emissions would be limited to 115 grams of carbon dioxide per kilometre.

This would rule out sales of some large and standard hybrid models, as well as potentially some plug-in ones.

Models that would face bans under this rule include the mild hybrid versions of the Ford Puma, Range Rover Evoque, Nissan Qashqai and VW Golf, amongst several others.

But the final impact could be even larger because current emission ratings for most plug-in hybrids do not reflect their real-world performance and are expected to be updated.

In many cases the true emissions of plug-ins are 243pc higher, according to the Government. If the emissions figures are revised upwards in the coming years, many more models would be forced out of the market.

Carmakers are lobbying against these plans, arguing that they will pile further pressure on the industry’s already-strained finances when it is having to invest heavily to meet EV sales targets.

Under the so-called zero emission vehicle (ZEV) mandate, 28pc of sales must be electric this year rising to 80pc by 2030. A full ban on cars with combustion engines then comes into force from 2035.

Despite suggestions the Government could relax its proposals, ministers could still face a backlash – but from EV manufacturers and charging providers instead.

‘Surrendered to lobbying’

Quentin Willson, the founder of FairCharge, said: “To include all hybrids in the ZEV mandate – and not just plug-in versions that can run on battery alone – means that our Government will have surrendered to intense auto industry lobbying to keep making combustion engines.

“Hybrids that use a petrol engine for 90pc of the time aren’t an improvement for consumers, air quality or CO2 reduction.

“They’re old, faulted technology, and a huge step backwards.”

A Department for Transport spokesman said: “We have been working closely with car manufacturers on how we can support them to deliver the transition to electric vehicles.

“Our consultation looked at which new hybrid cars can be sold between 2030-35 and we are now carefully considering the feedback before we respond.

“We continue to back the sector by investing over £2.3bn to help the country make a supported switch to EVs, creating high-paid jobs, tapping into a multibillion-pound industry and making the UK a clean energy superpower as part of our Plan for Change.”