Nissan Motor has called on the UK government to relax its electric vehicle (EV) mandate as it could cause “irreversible impact” in the nation’s automotive industry.
The UK’s Zero Emissions Vehicle (ZEV) Mandate requires at least 22% of an automaker’s new car sales in 2024 to be purely EVs, with fines for non-compliance.
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The Japanese automaker cautioned that failing to meet the target could lead to hefty fines for manufacturers and advocated for greater flexibility in acquiring credits.
Nissan also suggested a two-year monitoring period for 2024 and 2025 due to the slowdown in consumer demand.
In a statement, Nissan chair for the Africa, Middle East, India, Europe and Oceania region Guillaume Cartier said: “The mandate risks undermining the business case for manufacturing cars in the UK.
“We now need to see urgent action from the government by the end of the year to avoid a potentially irreversible impact on the UK automotive sector.”
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By GlobalDataThe call follows a meeting between UK transport secretary Louise Haigh, business and trade secretary Jonathan Reynolds, charging companies, and eight EV manufacturers, including Volkswagen, Nissan, and Tesla, to discuss the government’s electrification policy.
Ministers are resisting industry pressure to weaken the ZEV mandate, the Financial Times reported.
The government maintains its stance on fines of £15,000 per car for failing to meet targets.
An official stated that a delay in penalties until the end of 2025 is unlikely.
While ministers have not ruled out lowering fines, they prefer alternative mechanisms, such as allowing British-made cars sold abroad to count towards sales targets.
Citing Society of Motor Manufacturers and Traders, Nissan said that the UK is likely to miss the 2024 targets set by the ZEV mandate.
Nearly 300,000 new EVs have been registered in the UK in 2024, representing an 18.1% market share, up from 16.3% last year, but still below the 22% target.
Global automakers are scaling down electrification targets due to slowing demand, lack of affordable models, and increased competition.
Nissan’s call comes as Ford has announced plans to cut its European workforce by 4,000, primarily in Germany and the UK.
The US company hopes to create a more cost-competitive structure and ensure long-term sustainability and growth in Europe
