Automakers with existing operations in the United Kingdom are postponing decisions on new factory investments as they await potential changes to the country’s electric vehicle sales regulations, according to the leader of the British car industry’s main trade association. Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders (SMMT), said manufacturers have been considering the development of new models but have not finalized plans due to uncertainty surrounding current rules.

The UK government enforces a zero emission vehicle (ZEV) mandate, which requires carmakers to increase the proportion of electric vehicles sold annually, with progressively stricter targets through 2030. However, the industry has urged policymakers to relax these requirements, suggesting that the existing rules are impeding investment in domestic production capacity.

Jonathan Reynolds, the UK business secretary, has signaled that the government is likely to ease the ZEV mandate in the near future. Speaking on the issue, Hawes indicated that many manufacturers are delaying their investment decisions pending clarification or revision of the current regulations. “Manufacturers are waiting for the mandate, certainly,” he said. “There’s investment decisions on next model, next generation, which … need an easing of the mandate.”

The situation highlights tensions between the government’s ambitions to accelerate the transition to zero emission vehicles and the car industry’s concerns about the impact of stringent targets on production planning and financial commitments. As automakers weigh their options, the timing and extent of any regulatory adjustments remain key factors influencing investment choices in the UK automotive sector.