It will follow up the revamped ZEV mandate with the unveiling of a “modern industrial strategy” in the summer, “which will help British businesses realise the potential of industries of the future”.
The government is still attempting to negotiate a new trade deal with the US in a bid to neutralise the impact of the tariff, but ministers are drawing up a list of retaliatory measures that the UK could put in place in the coming weeks if it’s unsuccessful.
The government said: “Support for the car industry will be kept under review as the impact of new tariffs become clear.”
SMMT chief executive Mike Hawes hailed the relaxations as a step in the right direction, saying: “The government has rightly listened to industry and recognised the intense pressure manufacturers are under.
“Industry remains committed to decarbonising road transport, but the ZEV mandate targets are incredibly challenging, especially with a paucity of consumer demand and geopolitical upheaval.
“Growing EV demand to the levels needed still requires equally bold fiscal incentives, however, to give motorists full confidence to switch.
“We await full details of the regulatory amendments but, given the potentially severe headwinds facing manufacturers following the introduction of US tariffs, greater action will almost certainly be needed to safeguard our industry’s competitiveness.
“UK-US negotiations must continue at pace, while the long-awaited industrial and trade strategies should prioritise automotive and be delivered at speed.
“In this vastly changed world, a package of measures is needed to support manufacturing, especially the supply chain, so our industry can deliver the economic growth, jobs and investment the country needs.”
Hybrids to remain on sale past 2030
The government said that allowing hybrids to remain on sale until 2035 will “ease the transition and give industry more time to prepare”.
Last month, there was a 37.9% year-on-year uptick in registrations of plug-in hybrids in the UK, and registrations of other types of hybrid (including mild hybrids) rose 27.7%, giving electrified cars a combined market share of 25%, compared with 20.7% for EVs.