Stellantis, a multinational automotive group encompassing brands such as Fiat, Peugeot, and Vauxhall, has raised concerns that the UK government’s policy of welcoming Chinese car imports is complicating efforts to meet the country’s zero-emission vehicle (ZEV) targets. The company expressed apprehension about the “sustained impacts” from Chinese manufacturers including BYD and Chery.

Under the UK’s ZEV mandate, sales of new petrol and diesel vehicles must end by 2030, with all new cars required to be fully electric by 2035. The policy sets incremental targets for electric vehicle (EV) sales, increasing from 33 percent this year to 38 percent next year, among other milestones. Automakers failing to meet these targets face potential financial penalties.

In a letter sent in April to former Transport Secretary Heidi Alexander and former Business Secretary Peter Kyle, Eurig Druce, Stellantis UK’s managing director, described the targets as creating an “intolerable commercial impact” on the company’s operations. Druce noted that EV sales in the first quarter were approximately 10 percent below mandated levels and contended that the mandate’s objectives were neither achievable nor reflective of current UK customer adoption rates. He further argued that the government’s openness to “likely heavily subsidised” Chinese imports was exacerbating these challenges.

Chinese brands have made significant inroads into the UK market, accounting for nearly 20 percent of new zero-emission vehicle registrations this year. Models like the Jaecoo 7, a hybrid SUV resembling a Range Rover, have attracted consumer interest. Unlike the European Union and the United States, the UK currently imposes no additional tariffs on Chinese car imports. According to the Society of Motor Manufacturers and Traders (SMMT), over 196,000 Chinese-made vehicles were sold in the UK last year, more than doubling the 96,000 units sold in 2024.

The government is scheduled to review the ZEV mandate later this year amid industry pressure. A joint letter sent in April from manufacturers including BMW, Bosch, Ford, and Nissan called for an adjustment to the target trajectory, describing current goals as “too stringent” and overlooking the financial burden of compliance. These companies emphasized their substantial UK presence, citing direct employment of over 30,000 people and more than £3 billion in investments over the past decade.

In a June letter to the transport secretary, Mike Hawes, chief executive of the SMMT, warned that the mandate was forcing the sector to sustain “significant and unsustainable incentives” to encourage consumer uptake of EVs.

However, some industry voices disagree with calls for relaxing the targets. Ginny Buckley, chief executive of Electrifying.com, an electric car buying platform, said that Chinese brands have made EVs more affordable and accessible, thereby benefiting consumers. She cautioned that abandoning EV targets in favor of traditional petrol and diesel vehicles would hinder progress and make the UK less competitive compared to markets like China.

A spokesperson for the Department for Transport reaffirmed the government’s commitment to ending sales of non-zero emission vehicles by 2035, highlighting a 35 percent increase in EV sales compared to the previous year and pointing to a £2 billion electric car grant program aimed at supporting manufacturers and consumers.

Stellantis declined further comment beyond stating that the automotive market environment remains challenging, a situation it has communicated clearly to government officials.