The European Union’s decision to drop its planned ban on the sale of new petrol, diesel and hybrid cars has fundamentally changed the landscape for automotive decarbonisation – leaving the UK increasingly isolated, writes Fraser Brown of automotive consultancy, MotorVise.
Brussels has now confirmed that a total ban on internal combustion engine vehicles from 2035 is off the table indefinitely, replacing it with a requirement for a 90% reduction in fleet-wide CO₂ emissions. It’s a decisive shift away from technology bans towards a more flexible, outcomes-based approach, and one that carries serious implications for Britain’s own policies.
I’m a firm supporter of emissions-free motoring, but that does not mean blind acceptance of rigid and inflexible regulation. Right now, the UK risks going it alone in a way that could damage its automotive sector without delivering the environmental gains policymakers are seeking.
The EU’s reversal is not accidental. It follows sustained pressure from major car-producing nations such as Germany and Italy, growing concern over slower-than-expected EV uptake, and increasing anxiety about the impact of cheaper Chinese electric vehicles on European manufacturers. In that context, policymakers have chosen pragmatism over dogma.
If the UK presses ahead with its plan to ban new petrol and diesel cars from 2030, followed by hybrids in 2035, while Europe allows continued sales under a reduced emissions framework, the consequences for manufacturers and retailers here could be profound.
UK vehicle production is deeply intertwined with European markets. Diverging regulatory regimes risk forcing manufacturers to design and build different vehicles for different regions, driving up costs and increasing complexity. In the worst-case scenario, British plants could find themselves producing EU compliant vehicles that are unsellable at home. It’s hardly a recipe for competitiveness, inward investment or long-term job security.
Retailers would be caught squarely in the middle. Dealers are already grappling with uneven EV demand, patchy public charging infrastructure and lingering consumer uncertainty. Mandating supply without doing enough to stimulate demand places real pressure on margins and stock profiles, particularly for smaller, independent retailers without the financial resilience of large dealer groups.
Consumer choice still matters. Restricting it too abruptly risks slowing the transition rather than accelerating it.
This is why the Government’s Zero Emission Vehicle (ZEV) mandate now requires urgent reassessment. A review is scheduled for 2027, but with Europe changing course, there is a strong case for bringing that review forward. It’s not about abandoning net zero ambition but about aligning policy with economic reality and market readiness.
Flexibility in targets, aligned more closely with our largest export market, would give industry breathing space while preserving direction of travel and, crucially, certainty. Without that alignment, investment decisions around EV and battery manufacturing in the UK risk becoming harder, not easier, to justify.
Taxation also needs careful timing. The proposed move towards a pay-per-mile tax for EVs may be fiscally logical in the long term but introducing it too early risks undermining consumer confidence just as adoption needs to accelerate. Early EV adopters have already paid a premium to make cleaner choices. Penalising them before the market has fully developed sends the wrong signal.
If the Government is serious about accelerating the transition, it must focus as much on demand as supply. That means extending and enhancing incentives to buy EVs – not just headline grants, but practical measures that address real-world barriers. Reducing VAT on public charging, supporting home and workplace infrastructure, and incentivising the used EV market would all help broaden adoption beyond fleets and early enthusiasts.
What’s happening in Europe is not an abandonment of climate responsibility, but a recognition that decarbonisation must be economically viable, socially acceptable and internationally aligned.
The UK can remain committed to net zero without isolating its automotive industry. The goal must be fewer emissions, not fewer options. A flexible, technology-neutral framework, supported by smart incentives and aligned with Europe, offers a far better chance of delivering both environmental progress and a resilient automotive sector.
Author: Fraser Brown is founder of automotive consultancy MotorVise