In the high-stakes battle over the UK’s green car laws, Jaguar Land Rover deployed a powerful, nationalist argument, claiming the rules were forcing British-based companies to “subsidise” their international rivals, particularly those in China.
JLR’s argument focused on the ZEV mandate’s credit-trading mechanism. This system allows companies exceeding their EV sales targets to sell surplus credits to those falling short. JLR contended that since Chinese manufacturers are leaders in EV production, the system effectively funnelled cash from UK operations to competitors abroad.
This plea tapped into anxieties about the UK’s industrial sovereignty and the economic threat posed by China. It transformed the debate from a simple environmental issue into one of national economic security, a far more potent subject for political lobbying.
While it is just one of several arguments used by the industry, JLR’s complaint was notable for its geopolitical framing. The eventual relaxation of the rules, which lessens the need for companies to buy credits, suggests this line of reasoning contributed to the government’s decision to rethink its approach.