UK car industry calls for 'meaningful' watering down of EV targets after latest slump in production

See more This is Money on Google - save us as a Preferred Source Updated: 04:33 EDT, 27 August 2026 Britain’s car makers have called for an ‘urgent’ watering down of electric vehicle targets and action on energy costs as latest figures showed they remained under ‘intense pressure’.UK car production fell to 61,767 in July, down by 10.6 per cent on the same month last year, according to the Society of Motor Manufacturers and Traders, an industry body.For the year to date they are running 4.7 per cent lower at 433,523, the SMMT said.It comes as the industry struggles to meet government targets to increase the share of electric vehicles that they sell in the UK. Falling short could see car makers face fines.This year, one in four new cars sold so far have been electric vehicles (EVs) – leaving the 33 per cent target for 2026 unlikely to be met. By 2030, that target will rise to 80 per cent, under the current 'zero-emission vehicle' (ZEV) rules.Earlier this month, the government said it would water down the targets given the ‘slower than anticipated’ uptake.The SMMT’s latest figures revealed a much-needed improvement in fortunes for greener cars, with production of fully electric and hybrid models up by 6.8 per cent to 25,678 units.They now account for more than four in ten cars built in the UK. Carmakers are under 'intense pressure' after a slump in production, new figures showCar makers are also grappling with industrial energy costs that are 60 per cent higher than those of rivals in Europe as well as the prospect of new ‘Made in the EU’ proposals from Brussles that threaten to make British-made vehicles uncompetitive on the continent.SMMT chief executive Mike Hawes said: ‘July’s figures underline the intense pressure under which UK vehicle manufacturers are currently operating.’Hawes said part of the latest decline was due to the timing of normal summer shutdowns as well as model changeovers but said that was ‘being compounded by weaker overseas demand and fierce global competition’.He added: ‘The rise in electrified vehicle production is encouraging, but long-term success depends on making the UK a more competitive place to make and sell vehicles.‘Meaningful and urgent reform of the ZEV Mandate, reduction of the UK’s sky-high energy costs and negotiations to safeguard free and fair trade with our largest and closest export market are essential to put UK automotive manufacturing back on a path to growth.’DIY INVESTING PLATFORMSAJ BellAJ BellEasy investing and ready-made portfoliosHargreaves LansdownHargreaves LansdownFree fund dealing and investment ideasinteractive investorinteractive investorFlat-fee investing from £4.99 per monthFreetradeFreetradeInvesting Isa now free on basic planTrading 212Trading 212Free share dealing and no account feeAffiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.Compare the best investing account for you