The UK car industry is calling for a ‘meaningful’ softening of EV targets after the latest production slump

Britain’s carmakers have called for an “urgent” weakening of electric vehicle targets and action on energy costs as latest figures showed they remained under “intense pressure”.

British car production fell to 61,767 in July, down 10.6 percent from the same month last year, according to the Society of Motor Manufacturers and Traders, an industry body.

For the year to date, they are down 4.7 percent at 433,523, the SMMT said.

It comes as the industry struggles to meet government targets to increase the share of electric vehicles they sell in Britain. If they fall short, carmakers could face fines.

This year, one in four new cars sold so far has been an electric car (EV), meaning the 33 percent target for 2026 is unlikely to be met. By 2030, that target will rise to 80 percent, under current zero-emission vehicle (ZEV) regulations.

Earlier this month, the government said it would water down the targets given “slower than expected” uptake.

The latest figures from the SMMT show that production of fully electric and hybrid models increased by 6.8 percent to 25,678 units.

They now account for more than four in ten cars built in Britain.

Carmakers are also grappling with industrial energy costs that are 60 percent higher than rivals in Europe, as well as the prospect of new ‘Made in the EU’ proposals from Brussels that threaten to make British vehicles uncompetitive on the continent.

SMMT chief executive Mike Hawes said: ‘July’s figures underline the intense pressure under which British car manufacturers are currently operating.’

Hawes said some of the latest decline was due to the timing of normal summer shutdowns and model changes, but said this was “exacerbated by weaker external demand and intense global competition”.

He added: ‘The increase in production of electrified vehicles is encouraging, but long-term success depends on Britain becoming a more competitive place to make and sell vehicles.

‘Meaningful and urgent reform of the ZEV mandate, reducing Britain’s skyrocketing energy costs and negotiations to secure free and fair trade with our largest and nearest export market are essential to putting the UK car industry back on the path to growth.’