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Ministers are planning to back away from a total ban on the sale of new petrol-powered cars by allowing hybrid vehicles to remain on the market until 2035.
In its election manifesto, Labour vowed to scrap the sale of “new cars with internal combustion engines” by 2030 as part of efforts to reach net zero.
The language suggested that new hybrids – such as Nissan’s best-selling Qashqai which uses a petrol or diesel engine in conjunction with a battery – would be covered by the ban.
But amid growing reluctance among drivers to buy electric vehicles and concerns about range, resale value and the availability of charging points, as well as lobbying from the manufacturing industry, the Government is now expected to make clear that hybrids will still be sold for an extra five years after “pure” petrol and diesel cars.
On Friday, Helen Whately, the Tory shadow transport secretary, claimed Labour “either didn’t know what they were committing to” during the election “or have now realised it isn’t possible”.
The Government’s decision is likely to delight motorists, who have proved far more willing to embrace hybrids than electric cars. Production of electric Fiat 500s was halted in Europe last week because of a lack of orders. In recent weeks, manufacturers including Volvo and Toyota have also announced plans to extend hybrid production amid cooling EV demand.
However, the move to allow 20pc of new car sales to be hybrids until 2035 is likely to cause friction with environmental campaigners who are critical of their emissions. Greenpeace has previously described hybrids as the car industry’s “wolf in sheep’s clothing”.
Conservative frontbencher Ms Whately said: “This new plan is the worst of both worlds. It doesn’t do much to drive down emissions and it’s moving too fast for businesses and motorists.
“Labour spent years in opposition telling everyone they’d give businesses certainty, but they’re backsliding within months.
“This dithering creates a huge headache for manufacturers and ultimately hurts economic growth.”
On Saturday a Labour source insisted it was always its policy to allow the continued sale of some hybrids.
A government spokesman said: “This government’s policy has always been to revert to the original 2030 phase out date for the sale of new vehicles with pure internal combustion engines.
“The original phase out date included the provision for some hybrid vehicle sales between 2030 and 2035. We will set out further details on this in due course.”
Labour’s policy had previously been ambiguous, leaving the possibility that hybrids may also be banned, according to car makers.
In July, Mike Hawes, chief executive of the Society for Motor Manufacturers and Traders (SMMT), said companies were concerned the 2030 ban could mean “a complete end of everything that has a tail pipe”.
Under the consultation the Government is planning to keep in place controversial rules introduced under the Tories that force manufacturers to ramp up sales of electric cars.
The regulations – known as the zero emission vehicle (ZEV) mandate – require 22pc of cars sold by manufacturers to be electric from this year, rising gradually to 80pc by 2030.
The Government’s plans were revealed this week at a gathering of car industry executives in Parliament, where a senior civil servant in the Department for Transport said ministers planned to consult on the changes “as soon as possible”.
A senior government official told the gathering: “This government’s come in and said they’re going to move back to a phase-out date for petrol and diesel cars of 2030.
“Now, that doesn’t mean we’re shifting the [ZEV] mandate to be 100pc EV in 2030. To reassure you, we are staying at 80pc in 2030.
“What it means is, there will have to be some sort of hybridization of the remaining 20pc.”
It is not yet clear which hybrids will qualify for sale in the final five years up to 2035.
That definition will be decided as part of the consultation process, The Telegraph understands.
Hybrids come in a range of types: from “mild”, which use small batteries to support a petrol or diesel-fueled engine, to plug-in hybrids that have large batteries capable of powering a car for short trips before needing to switch to a petrol engine.
The same official said the consultation will clear up this ambiguity.
“What this market really needs is certainty and stability. It doesn’t need more uncertainty.
The reassurance follows a slowdown in demand for EVs across Europe that has spooked automotive companies and prompted warnings that legally-binding sales targets in the UK are too “aggressive”.
Manufacturers face fines of £15,000 for every petrol car sold over a set quota.
The system has led to complaints that car makers are restricting the supply of petrol and diesel cars for fear of falling foul of the rules.
On Friday, a source at a UK car manufacturer said: “At the moment, we have regulations that compel supply but the demand from consumers is simply not there.”
Petrol car ‘rationing’
The Government’s revised policy means it will be adopting the original plan proposed by former prime minister Boris Johnson in 2020, who said no new pure petrol or diesel-powered cars would be sold after 2030 but allowed hybrid sales until 2035.
Rishi Sunak subsequently pushed the ban on pure petrol sales back to 2035, with the former Conservative prime minister claiming an earlier date would impose “unacceptable costs” on families.
Mr Sunak’s plan is still party policy, meaning a key difference between the Conservatives and Labour’s new plan is that the opposition would allow pure petrol and diesel sales up until 2035.
Car companies including Stellantis, the owner of Vauxhall which operates major factories in Luton and Ellesmere Port, have warned they are being forced to slash prices to unsustainable levels to sell enough EVs to comply.
Car manufacturers privately say they will push for further concessions on the ZEV mandate, potentially to introduce more allowances or reduce penalties.
Alternatively, there are calls for the Government to stimulate demand with tax breaks or grants for consumers who go electric.
Mr Hawes of the SMMT, on Friday urged ministers to help revive electric car sales growth with “fiscal incentives, a turbocharged chargepoint rollout and an industrial strategy that supports investment, economic growth and broad market decarbonisation”.
He added: “Manufacturer discounting cannot continue indefinitely.”
Senior industry figures have warned that the Government’s policy as it stands is distorting the new car market. As previously revealed by The Telegraph, dealership chain Vertu Motors has said some manufacturers are rationing supplies of petrol cars so they can hit their targets for EVs.
Robert Forrester, Vertu’s chief executive, this week wrote to Jonathan Reynolds, the Business Secretary, to request an urgent meeting to discuss the issue and claimed consumers were being “coerced” into going electric.
He said: “The targets in the United Kingdom are far more aggressive than in any other western country. Frankly, the industry can’t get there without significant collateral damage.”
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