Keir Starmer Promises Overhaul of EV Policy as Tesla’s UK Market Share Crashes 25%

• Prime Minister Keir Starmer has issued new policies for the U.K.’s electric vehicle industry, aiming to secure long-term adoption in the sector.
• Donald Trump’s U.S. tariffs have disrupted U.K. automotive exports, sparking concerns over international trade.
• Tesla’s market share in the U.K. has decreased by a quarter, reflecting the growing challenges to its brand across the globe.

U.K. Prime Minister Sir Keir Starmer has pledged to overhaul the country’s electric vehicle (EV) policy as the industry grapples with sweeping tariffs imposed by U.S. President Donald Trump.

The announcement comes as Tesla, the leading EV brand in the U.K., has seen its market share decline amid a global backlash.

Starmer’s EV Overhaul

On Monday, April 7, Starmer is expected to promise “bold changes” to the rules governing EVs, including reaffirming the 2030 deadline for banning new fossil fuel vehicle sales.

To ease the transition for manufacturers and consumers, the government will allow the sale of hybrid vehicles, including plug-in hybrids, until 2035.

Due to their limited production volumes, smaller luxury carmakers such as Aston Martin and McLaren will be exempt from the 2030 ban.

Beyond regulatory adjustments, the government plans to invest £2.3 billion to support the EV transition, including tax incentives for EV purchases, expanding domestic EV manufacturing, and improving charging infrastructure nationwide.

Starmer is expected to emphasize the importance of active government support:

“That means action, not words,” the Prime Minister is set to say.

Transport Secretary Heidi Alexander echoed the sentiment, stating that the automotive industry needs certainty during a volatile economic period.

“Our ambitious package of strengthening reforms will protect and create jobs, making the U.K. a global automotive leader in the switch to EVs, all the while meeting our core manifesto commitment to phase out petrol and diesel vehicles by 2030,” she said.

Trump Tariffs Shake U.K. Auto Sector

The policy shift follows newly imposed U.S. tariffs, as President Trump levied a 25% tariff on imported vehicles—heavily impacting British carmakers.

On Saturday, Jaguar Land Rover announced a temporary halt to U.S. shipments while assessing the impact of the tariffs.

A Jaguar Land Rover spokesperson told the BBC the company was “taking some short-term actions including a shipment pause in April, as we develop our mid to longer-term plans”.

The Institute for Public Policy Research (IPPR) warned that over 25,000 British automotive jobs could be at risk as U.S. exports decline.

All other U.K. imports have been struck with a 10% tariff.

Tesla’s U.K. Market Share Falls

Meanwhile, Tesla’s market share in the U.K. EV segment has dropped by 25% since the beginning of 2025, as the company and CEO Elon Musk face mounting global criticism.

According to New AutoMotive , EV sales in the U.K. rose 38% in March compared to last year’s, with a record 68,255 EVs sold.

Despite the overall growth, Tesla’s U.K. market share  has fallen from one in seven of all-electric cars registered to one in ten, The Times reported .

While the U.S. tariffs are unlikely to significantly impact Tesla’s U.K. operations—given its manufacturing hubs in China and Germany—the company continues to struggle with broader challenges.

In March, Tesla’s stock price fell more than 50% from its mid-December peak, surpassing its worst monthly decline recorded in December 2022.

The EV giant is also contending with slowing global demand and protests linked to Musk’s political involvement and his relationship with President Trump.