But in the letter from lobby group ChargeUK, seen by The Telegraph, charging companies told the PM: “Weakening the mandate now – by adjusting its dates, its annual targets or its flexibilities – would be the third revision of this crucial policy in three years.
“Twice is circumstance, but three times is a pattern that will get priced into the cost of capital by every investor weighing whether Britain keeps its word in our sector and beyond.
“Our members tell us £2bn of planned investment now turns directly on this review – a halving of investment over the critical period of the next five years.”
The letter also claims that scaling back investment in EVs will mean an “industrial disaster” for carmakers, as it will shrink the market “on which their long-term success depends”.
Major funds, including Macquarie, BlackRock and M&G, are among those to have poured hundreds of millions of pounds into British charging infrastructure on the assumption that the Government’s EV mandate would incentivise sales and provide demand.
The mandate came into force in 2024 and requires a certain proportion of carmakers’ sales to be electric each year, starting at 22pc and gradually ratcheting up to 80pc by 2030.
The regime has already been watered down twice. Now Sir Keir is preparing to make further changes following pressure from car companies, unions and Peter Kyle, the Business Secretary, according to The Sunday Times. The Prime Minister will reportedly reduce the 2030 EV sales target from 80pc to 50pc, with an announcement expected in the coming weeks.
James Alexander, of the UK Sustainable Investment and Finance Association, said: “Investors in the UK have been absolutely clear that the ZEV mandate is vital for driving investment into our charging infrastructure.
“This framework has given the market confidence to commit vast sums of private capital to building out these networks across the country.
“Any attempt to water down these targets could send warning signals to these investors about the government’s long-term commitment to electrifying our transport network.”
Tanya Sinclair, chief executive of Electric Vehicles UK, added that “constant changes of direction” suggested that Labour “has yet to establish a clear policy position and maintain it”.
‘This is a huge victory’
Carmakers insist the current mandate targets do not reflect “real-world conditions”.
This year, EVs have accounted for only 24pc of sales, according to the Society of Motor Manufacturers and Traders (SMMT), below the Government’s headline 33pc target.
When various scheme “flexibilities” within the regime are factored in, the “real” requirement this year is 24.6pc according to experts, but carmakers are currently on track to undershoot that as well.
Mike Hawes, chief executive of the SMMT, said earlier this month: “Consumers consistently cite familiar reasons to hold off: cost, uncertainty about infrastructure, and whether an EV will meet their driving needs.
“It’s clear that the assumptions underpinning the mandate no longer hold. This is not about weakening ambition, but restoring credibility. Regulation must reflect real-world conditions.”
Union Unite had warned that a failure to relax the EV targets would put thousands of jobs at risk. Responding to reports that Sir Keir was preparing to soften the targets, Sharon Graham, Unite general secretary, said: “This is a huge victory. UK car workers have been increasingly fearful for their jobs.”
By contrast, Greg Jackson, the boss of Octopus Energy, which runs a large electric car leasing business, said: “It looks like the Government has chosen short-termism incumbent lobbying instead of the long-term future of industry.
“This hesitation undermines the credibility of government commitments, which were supposed to give certainty to investors. Fewer EVs will mean higher electricity bills for everyone as we spread lower demand over ever higher fixed grid costs, less investment in charge points and a very dim future for our car industry.”
In concessions to industry, Rishi Sunak previously pushed back a ban on petrol cars. Labour subsequently allowed hybrid car sales to make a greater contribution to the targets, and ministers also promised a review of the regime in 2027 to determine whether it needed further adjustment.
On Friday, a Government spokesman said: “We remain committed to phasing out all new non-zero emission car and van sales by 2035, and the ZEV mandate review will be concluded by early 2027 as planned.”