The UK government has mandated that automakers must meet an electric vehicle sales quota by the end of this year, with non-compliance resulting in fines. However, current sales figures are falling short. Manufacturers are resisting this requirement and have already taken measures such as price cuts, but the industry still faces challenges. The government may adjust the quota-related policies, with mixed reactions from stakeholders. Meanwhile, unlike the US and Europe, the UK has not imposed punitive tariffs on Chinese electric vehicles, though it remains uncertain whether this policy will continue.

To promote vehicle electrification, the UK government has set a target for automakers to achieve a 22% share of electric vehicle sales by the end of this year, with a £15,000 fine per vehicle for non-compliance. However, as of the end of October, the actual share was only 18%. European automakers have resisted this, complaining about weak demand for electric vehicles and resorting to price cuts of up to one-third to boost sales. While these measures have had some effect, the target is still unlikely to be met by year-end. Manufacturers like Stellantis have even threatened layoffs and factory closures. The government may make it easier for companies to obtain climate credits to help meet the quota and is also discussing consumer purchase incentives. However, some manufacturers still hope for a lower quota, while companies that have invested in charging infrastructure oppose diluting the target.

Key points:

UK automakers are under pressure from the government's electric vehicle sales quota during their transition to electrification. Despite their efforts, meeting the target remains challenging, and the industry faces a tough situation. While the government may adjust quota-related policies, opinions are sharply divided. Additionally, the UK's approach to tariffs on Chinese electric vehicles differs from that of the US and Europe, but the sustainability of this policy is uncertain.