FAMAGUSTA GAZETTE – The British government has announced a comprehensive support package to bolster the automotive industry as it faces challenges from new U.S. tariffs and the global transition to electric vehicles (EVs).
Jaguar Land Rover (JLR), which exports nearly a quarter of its vehicles to the U.S., has temporarily suspended exports following the imposition of a 25% tariff on foreign-made cars.
Prime Minister Keir Starmer emphasized the need for decisive action, introducing reforms to the Zero Emission Vehicle Mandate.
These include allowing carmakers to borrow “electric vehicle credits” between 2024 and 2026, extending the use of hybrid vehicles until 2035, and providing greater flexibility to meet EV production targets.
The government also confirmed a £2.3 billion investment to support EV adoption and expand charging infrastructure.
The automotive sector, which contributes significantly to the UK economy, faces potential job losses due to tariff pressures.
Analysts warn that up to 25,000 jobs, particularly in the West Midlands, could be at risk.
Transport Secretary Heidi Alexander highlighted the package’s role in protecting jobs and positioning the UK as a leader in EV technology.