Prius-style hybrids could be sold after 2030 in loosening of UK’s EV rules

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Carmakers may be permitted to sell Prius-style hybrid models in the UK until 2035, as ministers consider ways to water down the country’s electric vehicle sales regime, according to people with knowledge of the discussions. 

A fast-tracked consultation launched this week will include a long-expected decision on what types of vehicles carmakers can sell after a 2030 ban on new petrol and diesel cars comes into force, the people said.

Former transport secretary Louise Haigh had been “open to” allowing the sale of “full hybrid” models that use an engine and battery in parallel, according to multiple people in government and industry.

Her abrupt resignation, after she admitted on Thursday receiving a criminal conviction in 2014, was not expected to cause a significant shift in the government’s discussions on full hybrids.

The technology, pioneered by the Toyota Prius and now commonly used by several brands, cuts a vehicle’s overall emissions significantly but does not allow cars to drive for an extended time using battery power alone.

Unlike “plug-in hybrids”, which have larger batteries, “full hybrids” do not plug in to recharge.

A decision to allow these cars to be sold after 2030 would be welcomed by the industry, which has called for an overhaul of the current scheme because sales of pure-electric vehicle remain stubbornly lower than had been expected.

Allowing sales of full hybrids to continue after 2030 would be a “break glass in case of emergency” situation, according to one government figure who did not rule it out as an eventual possibility.

But electric vehicle advocates and some ministers believe allowing “full hybrid” sales would deter people from buying an EV.

The consultation is expected to lead to the government giving carmakers greater flexibility on several other areas of the UK’s electric vehicle sales mandate.

Two existing flexibilities that will be expanded or extended are the “trading” loophole that allows carmakers to buy credits from rivals to avoid fines, and another under which they can miss early targets but avoid fines by pledging to overachieve in future years.

“We will go gangbusters on flexibility,” said one government figure. 

The current scheme requires a certain percentage of each carmakers’ annual sales to be zero-emission vehicles, with the percentage annually rising from 22 per cent this year to 80 per cent in 2030. Companies face fines of £15,000 for each missed vehicle. 

The scheme, called the “ZEV mandate”, has come under significant criticism from the industry, which has warned that pushing too fast will cost jobs.

Stellantis blamed the “ZEV mandate” on Tuesday as it announced plans to shut its van factory in Luton, putting 1,100 jobs at risk. Ford has also announced 800 job cuts in the UK because of weak EV sales, while Nissan has warned about manufacturing job losses unless the scheme is weakened.

Electric vehicles accounted for 18 per cent of sales between January and October — below the 22 per cent threshold — while full hybrid sales made up 13.5 per cent, and plug-in hybrids were 8.4 per cent, according to sales data from the Society of Motor Manufacturers and Traders.

A decision in favour of hybrids would boost Toyota, Honda, Hyundai, Nissan and Kia, which all have strong sales of the petrol-electric vehicles. 

The consultation will include “open-ended” questions over what types of hybrid should be allowed in that five-year period and — crucially — whether they will have to be plug-in hybrid cars.

Some cars are marketed as “mild hybrids” because they contain 48-volt batteries that do not drive the vehicles, but they are not classed by the industry as hybrids.

Carmakers have struggled to meet the ZEV mandate without buying credits from rivals that are ahead on the electric transition, or that only sell EVs such as Tesla. Companies are also given credit for significant reductions in their own overall carbon emissions, which has benefited brands that sell large numbers of hybrids.