Government delivers support to UK car industry after pressure from manufacturers

The UK Government has announced a series of initiatives aimed at supporting the automotive industry amidst challenges posed by US tariffs and the transition to electric vehicles.

Already lobbying for modifications to the electric vehicle mandate, the car sector was hit hard by the imposition of a 25% tariff on exports to the US. In response to concerns over potential job losses, the Government has introduced a range of measures designed to bolster this crucial sector. A key element includes easing the targets for electric vehicle sales, after Nissan highlighted that stringent goals could jeopardise the 'viability' of its UK presence, including its Sunderland plant.

Prime Minister Sir Keir Starmer said: "Global trade is being transformed so we must go further and faster in reshaping our economy and our country through our Plan for Change. I am determined to back British brilliance. Now more than ever UK businesses and working people need a Government that steps up, not stands aside.

"That means action, not words. So today I am announcing bold changes to the way we support our car industry. This will help ensure home-grown firms can export British cars built by British workers around the world and the industry can look forward with confidence, as well as back with pride. And it will boost growth that puts money in working people's pockets, the first priority of our Plan for Change."

Business Secretary Jonathan Reynolds, said: "This pro-business Government is taking the bold action needed to give our auto sector the certainty that secures jobs, drives investment and ensures they thrive on the global stage. Our Industrial Strategy will back the country's high growth sectors, including advanced manufacturing, so we can grow the economy and deliver on the promises of our Plan for Change."

In a move to support car manufacturers towards the 2030 target for