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UK automakers hold back factory investment pending EV mandate changes
The SMMT said UK vehicle production declined 7.5% year over year in the first half of 2026 to 386,000 cars and commercial vehicles.
Carmakers are delaying decisions on investments in UK factories for new electric models until the government eases the zero emission vehicle mandate, the head of the Society of Motor Manufacturers and Traders said. Guardian Business reports that Mike Hawes said manufacturers with existing UK operations are “waiting for the mandate,” noting that investment choices for next model and next generation require a resolution and an easing of the rules.
The zero emission vehicle mandate requires automakers to sell an increasing share of electric cars each year through 2030. According to the outlet, UK Business Secretary Jonathan Reynolds has indicated the mandate is likely to be watered down.
The pressure comes as the British car industry faces competition from China, US tariffs, and higher costs tied to electric technology investment. Guardian Business added that the SMMT cited weaker output, saying UK vehicle production fell 7.5% in the first half of 2026 versus the prior year, with factories producing 386,000 cars and commercial vehicles.
The article also notes that the electric car charging industry has opposed further changes, while environmental campaigners have criticized any move that could lead to additional carbon emissions. Hawes declined to name specific companies waiting for the rule changes, though the story says it may include Toyota and Mini based on their UK operations mentioned in the piece.