Skip advert
Advertisement

Cheap electric car finance could be on the cards as government aims to boost sales

A newspaper column and whispers suggest that government-backed cheap EV loans could be coming to stimulate market

Omoda E5 - front tracking

Cheap car finance for EVs could be on the cards as the government scrambles to boost the number of UK electric car sales and appease disgruntled manufacturers amidst anger surrounding the ZEV mandate.

Writing in the Observer on Sunday, Secretary of State for Business and Trade, Jonathan Reynolds, told readers that the government “want[s] to do everything possible to make sure the next generation of zero-emission vehicles (ZEV) are designed and built right here in Britain [and] are affordable and accessible for working people”.

These statements come shortly after Reynolds announced at the Society of Motor Manufacturers and Traders’ (SMMT) annual dinner that Labour was seeking to conduct a review into the controversial ZEV mandate. This requires manufacturers to ensure a fixed and growing proportion of their output comprises electric and other zero-emissions vehicles, lest they receive a hefty fine of as much as £15,000 per car over the annual threshold.

Advertisement - Article continues below

While the business secretary’s words may cast some obscurity over the government’s approach to the current situation, which has seen some car makers announce the closure of UK facilities in order to cut costs, insiders suggest that ministers may be investigating how they could introduce low interest rate loans to the market in order to increase EV uptake.

Skip advert
Advertisement
Skip advert
Advertisement - Article continues below

Reynolds also reiterated his commitment to the manufacturers themselves, stating that “there is no route to net zero without backing British industries and workers”. He also told firms how the £2billion investment from Chancellor of the Exchequer Rachel Reeves in the autumn Budget will “support the latest research and development into these technologies, accelerating their commercial scale up and unlocking capital investment”.

To keep companies afloat while demand for EVs grows, another insider suggestion is that the government is weighing up whether to reduce fines for manufacturers straying over the mandate’s limit, which is set at 22 per cent of output for 2024. However, Reynolds reminded the public of the government’s commitment to the mandate as a whole, saying how the upcoming consultation “is about how, not if we reach this ambition”.

In the meantime, hundreds of jobs lay in the balance after both Ford and Stellantis (the owner of Vauxhall) decided to streamline UK operations in order to cut costs in light of tepid demand for EVs. Nissan, which has previously called on the government for “urgent action”, has also threatened job cuts if returns for investments are not met.

Would you buy an electric car if cheap finance was available? Let us know your thoughts in the comments section...

Skip advert
Advertisement
Consumer reporter

Tom is Auto Express' Consumer reporter, meaning he spends his time investigating the stories that matter to all motorists - enthusiasts or otherwise. An ex-BBC journalist and Multimedia Journalism graduate, Tom previously wrote for partner sites Carbuyer and DrivingElectric and you may also spot him presenting videos for the Auto Express social media channels.

Skip advert
Advertisement

Most Popular

Mercedes ‘Display in Glass’ tech puts screens on the outside of cars
Mercedes ‘Display in Glass’  - rear windscreen 'keep distance' warning

Mercedes ‘Display in Glass’ tech puts screens on the outside of cars

Mercedes has revealed the ‘Display in Glass’ technology it’s currently developing, along with a holographic head-up display system
News
4 Nov 2026
Car Deal of the Day: Audi A1 for under £200 a month is too good to miss
Audi A1 - front cornering

Car Deal of the Day: Audi A1 for under £200 a month is too good to miss

Audi’s smallest model is unbeatable value right now. It’s our Deal of the Day for 5 November.
News
5 Nov 2026
Jaecoo 7 locked in tight battle with Ford Puma for UK car sales crown
Jaecoo 7 - front cornering

Jaecoo 7 locked in tight battle with Ford Puma for UK car sales crown

The Jaecoo 7 is once again topping the UK sales charts, but can it really beat the Ford Puma for the honour of best-selling car over the whole year?
News
5 Nov 2026

Find a car with the experts