Nissan: UK’s Strict EV Rules Would Divert R&D Funds

Nissan, a key player in the UK’s electric vehicle manufacturing sector, warned the government that its original ZEV mandate would force the company to divert money away from “battery EV research and development in the UK.” This claim was part of a successful, behind-the-scenes effort by carmakers to gain more lenient sales targets.
The Japanese manufacturer, whose Sunderland factory is pivotal to the UK’s EV ambitions, argued that without more flexibility, the costs of compliance would reach “critical levels.” The implication was that the financial pressure of meeting sales quotas would stifle the very innovation needed to create the next generation of electric cars.
This argument was echoed by other industry leaders. BMW, Toyota, and Jaguar Land Rover all submitted responses to the government consultation outlining the economic risks posed by the mandate. They collectively portrayed the policy as a threat to jobs, investment, and the long-term competitiveness of the UK automotive sector.
The lobbying campaign resulted in the government amending the rules to be less demanding. Nissan subsequently welcomed the government’s “pragmatic approach.” However, critics suggest this move prioritises short-term financial concerns over the long-term environmental necessity of accelerating the transition to clean transport.