UK could loosen EV rules to allow sales of Prius-style hybrids until 2035 | Automotive industry

Car manufacturers may be allowed to sell Toyota Prius-style hybrid models in the UK until 2035, as the government looks at ways to loosen electric vehicle sales rules.

Earlier this week the government launched a fast-track consultation to determine what types of electric vehicles carmakers can sell after a ban on new petrol and diesel cars, which is due to come into force from 2030.

The transport secretary, Louise Haigh, who resigned on Friday after it emerged she had been convicted of fraud in 2014 over a missing work phone, had been reported as being open to allowing the sale of “full hybrid” models that use a normal engine as well as a battery, according to the Financial Times.

This technology was pioneered by Toyota with its Prius model and is now used by several manufacturers. It cuts overall emissions but does not allow cars to drive for long periods without using the polluting petrol or diesel engine.

Unlike plug-in hybrid vehicles with larger batteries, full hybrid vehicles use their engine to recharge instead of charging points.

Labour’s manifesto promised to restore the original 2030 phase-out date for the sale of new cars with pure internal combustion engines, which had been pushed back to 2035. In September, it emerged that the government was studying how long to allow the sale of hybrid cars.

Toyota has long lobbied for the government to permit full hybrid cars to be sold up to 2035, arguing it would help to secure the future of its UK car factory in Burnaston, Derbyshire. Toyota is due to invest in a new model to replace the Corolla at the plant in around 2027 and executives have previously said they would not build a fully electric version at that point – waiting instead for another of its standard seven-year cycles to pass.

The automotive industry has been lobbying in parallel for a change to the UK’s zero-emission vehicle (ZEV) mandate, which forces brands to sell an increasing proportion of electric cars each year, saying that the consumer demand for pure-electric vehicles continued to remain much lower than had been expected.

Last week, Ford announced it was cutting 4,000 jobs in Europe, including 800 in the UK, citing a need to reduce costs because of a slowdown in electric vehicle sales.

On Tuesday, Stellantis, the owner of brands including Vauxhall, put 1,100 jobs at its Luton factory at risk, blaming the UK’s weak economic conditions and the government’s ZEV mandate – although many in the industry are sceptical of that link. That evening, Jonathan Reynolds, the business secretary, told a dinner for 1,000 car industry executives that the government would “fast-track” changes.

Under the mandate, electric cars must make up 22% of sales of new vehicles this year, rising to 28% in 2025 – albeit with important loopholes that can reduce the target considerably. If they miss their targets, carmakers face fines of up to £15,000 for each vehicle.

No carmakers publicly argue with the goal of 80% battery electric cars by 2030, before a complete ban on new petrol and diesel engines in 2035.

However, a decision to allow the sale of Prius-style cars after 2030 would be welcomed by the industry to help the transition away from full petrol and diesel cars.

The Financial Times cited a government source who said that allowing the sale of full hybrids after 2030 would be a “break glass in case of emergency” scenario.

The consultation will also look at other areas of the ZEV mandate, including the “trading” loophole, which allows carmakers to buy credits from rivals to avoid fines, which could be expanded or extended.

Electric vehicles accounted for 18% of sales between January and October. That was below the headline 22% ZEV mandate threshold, but about in line with what they need to do once the loopholes are taken into account.

Full hybrid sales made up 13.5% of sales and plug-in hybrids accounted for 8.4% of car sales, according to sales data from the Society of Motor Manufacturers and Traders.