Nissan chiefs warn of the danger of thousands of car industry job losses due to 'outdated' electric vehicle targets

As part of the UK’s Zero Emissions Vehicles Mandate car manufacturers, including Nissan, were given an electric vehicles (EV) sales target of 22% for this year (2024) rising to 28% in 2025.

However the Society of Motor Manufacturers and Traders predict that the slowdown in consumer demand means that EV sales will only reach 18.5% of the total market.

Missing the target will result in significant fines for manufacturers unless credits are purchased from EV-only brands – none of which manufacture in the UK.

Nissan chiefs say this means the UK automotive industry will “effectively be subsidising EV sectors in other countries at the expense of investment in Britain”.

Nissan representatives say the company remains committed to a fully-electric future and with partners is investing billions in new models and technologies for its UK operations.

However, in light of the slowdown in consumer demand, they say the UK Government needs to urgently address the ZEV Mandate and potential sanctions which manufacturers say was built on the “assumption that the sharp rises in consumer demand for EVs seen in recent years would continue”.

Guillaume Cartier, Chairperson for the Nissan Africa, Middle East, India, Europe and Oceania (AMIEO) region, said: “Nissan has consistently supported the aims of the UK’s ZEV Mandate and has been working with Governments and partners towards a fully electric future since the first Nissan LEAF arrived in 2010.

“The Mandate risks undermining the business case for manufacturing cars in the UK, and the viability of thousands of jobs and billions of pounds in investment. We now need to see urgent action from the Government by the end of the year to avoid a potentially irreversible impact on the UK automotive sector.”

Nissan bosses say rather than impose fines, there should now be a two year monitoring period to “allow companies to plan accordingly and ensure the UK can deliver on the 80% target by 2030, even amidst existing market headwinds”.

They also feel there should be increased flexibility on borrowing credits from EV only manufacturers.

Nissan employs over 7,000 people, over 6,000 of which are employed at the company’s Sunderland manufacturing plant.

The Japanese car giant has already announced the production of three new EVs as part of its EV36Zero blueprint for the future of manufacturing.

The company says it is also investing in battery recycling, skills development and vehicle-to-grid technology to “help realise a sustainable, fully-electric future”.

Mr Cartier added: “We are committed to working with Government and industry partners on a long-term solution, but action is needed urgently to ensure we protect UK car manufacturing and ensure we can all realise and support the transition to zero emissions and carbon neutrality.”