The future of the UK car industry is at risk if ministers fine firms for selling petrol cars.

Ministers are resisting calls from carmakers to find ways to relax compliance with zero-emissions rules or jeopardize the future of the UK car industry.

Chief executives of leading international car manufacturers and electric vehicle (EV) charging companies have told Business Secretary Jonathan Reynolds and Transport Secretary Louis Hague that the UK car industry will miss government mandated EV sales targets in its first year following a slowdown in consumer demand.

The industry has warned the Government that urgent action is needed to eliminate financial penalties of up to £15,000 per vehicle for missing targets, which could divert vital investment away from new vehicles and technologies in the UK.

Nissan has warned the government that failure to change its EV targets could lead to a “potentially irreversible impact on the UK automotive sector”.

The Japanese automaker was one of the automakers that took part in an industry-wide meeting on the transition to electric vehicles with cabinet ministers and other officials. As the meeting took place, Ford announced it was cutting up to 4,000 more jobs, including hundreds in the UK, as it grapples with slowing demand for electric vehicles and fierce competition from Chinese rivals.

Nissan said that despite discounts made by manufacturers to boost sales this year, trade group the Society of Motor Manufacturers and Traders (SMMT) forecasts that slowing consumer demand means electric vehicle sales will reach only 18.5% of the overall market. against a zero-emission vehicle (ZEV) mandate target of 22 percent by 2024, rising to 28 percent in 2025.

“Failure to meet this target will result in significant penalties for manufacturers unless the credits are purchased from EV-only brands, none of which are made in the UK, meaning the UK car industry will effectively be subsidizing the EV sector in other countries for investment account in Britain,” the company warned.

The carmaker, which is investing heavily in electric vehicles at its plant near Sunderland, has called for more flexibility and a two-year “monitoring period” that would protect the industry from “potentially devastating” fines for failing to meet UK EV targets.

Guillaume Cartier, head of Nissan Europe, said the company has consistently supported the goals of the UK’s ZEV mandate and has been working towards an all-electric future since the introduction of the first Nissan LEAF model in 2010.

The Japanese carmaker said it was proud to call the UK home. It employs over 7,000 people who design, engineer and manufacture cars in the UK for customers across Europe and the world, contributing over £2 billion to the UK economy through UK wages. built-in parts and services.

But he warned: “The mandate risks undermining the business case for car manufacturing in the UK, as well as the viability of thousands of jobs and billions of pounds of investment. We now need to see urgent action from the government before the end of the year to avoid a potentially irreversible impact on the UK automotive sector.”

Ministers were warned that Nissan is the UK’s largest car maker thanks to its Sunderland plant, with international engineering and research and development in London and Bedfordshire. Three new electric vehicle models have already been announced for production in the UK. Further investment is also ongoing in battery recycling, skills training and vehicle-to-grid technologies to help realize a “sustainable, all-electric future”.

“A strong market and manufacturing base that supports jobs and drives growth requires workable regulation, backed by consumer support – tax incentives and confidence that the charging network will be available when needed. We will now urgently work with the government to identify any adjustments needed to help the industry and government achieve their goals, while instilling confidence in consumers and other stakeholders who are all part of this transition.”

A Government spokesman said: “Recognizing the global challenges facing the industry, ministers underlined the Government’s commitment to working constructively and working closely with the industry as we support the transition to electric vehicles by 2030.

“The UK car sector is now experiencing the fastest growth in sales of zero-emission vehicles of any major European market, and we are committing over £2.3 billion to support industry and consumers in the transition, with an average of 57 new chargers being added for public electric vehicles. every day”.

Manufacturers have been given targets ranging from 22 percent ZEV in 2024, 28 percent in 2025, 33 percent in 2026, 38 percent in 2027, 52 percent in 2028, 66 percent in 2029 and 80 percent in 2030. Manufacturers face fines for every non-compliant vehicle sold.