UK motor industry trade association
Major automakers have pulled several electric models and cancelled projects after federal tax credits ended in 2025, while Q2 2026 US EV sales have recovered sequentially to about 247,226 units. Higher fuel prices, state rebates and low‑cost entrants such as Slate, Fiat Topolino and Chinese brands in Europe are reshaping supply, pricing and consumer demand.
Electric-vehicle prices have risen in July as automakers tighten incentives after the expiration of federal tax credits. Analysts say limited supply and luxury demand are keeping prices high, while cheaper, mass-market models could pressure the market later in 2026.
The UK government has launched a consultation on the future of the zero emission vehicle mandate, with options to cut the 2030 target from 80% to as low as 50% or to keep 80% but extend flexibility to 2034. The final 2035 zero‑emission deadline remains unchanged, while industry groups warn of investment risk if targets loosen. The consultation runs until 23 October.
Britain seeks closer access to European markets as the EU pushes the Industrial Accelerator Act to curb China’s role in Europe’s supply chains. Britain warns against new barriers while exploring a reset with Brussels.