UK Revises Car Transition Plan Amid Tariff Issues

The UK government has revised its vehicle transition plan, maintaining the 2030 phase-out of new petrol and diesel cars, but extending the sale of full and plug-in hybrids until 2035. This decision aims to support the domestic car industry amid global economic challenges, including tariffs imposed by the US. Small and micro-volume manufacturers like McLaren and Bentley are exempt from the Zero Emission Vehicle (ZEV) mandate targets, and measures such as tax breaks and infrastructure investments are being implemented to bolster the sector. Prime Minister Keir Starmer emphasizes the importance of government intervention to protect and advance British manufacturing, promoting a resilient economy in the face of international trade pressures. The updated policies reflect extensive consultations and aim to provide flexibility and stability for manufacturers, ensuring a smoother transition to electric vehicles. Global trade dynamics, including potential free-trade zones, are also influencing these strategic changes.