Britain will reconsider rules that force automakers to produce more electric vehicles after the industry warned that the plan would lead to factory closures and job losses without stronger demand from consumers.

Britain’s new Labour government will launch a consultation on auto manufacturers' sales targets during the transition to electric vehicles, following the decision by Stellantis, the owner of Vauxhall,

Britain said on Wednesday it would rethink the rules that force carmakers to produce more electric vehicles after the industry warned that the current plan would lead to factory closures and job losses,

The UK government vowed more support for the nation’s car industry and will consult with manufacturers about changing an electric-vehicle sales mandate they won’t meet this year.

Britain has launched a consultation to review the targets set for carmakers to boost electric car sales, finance minister Rachel Reeves said on Wednesday, after industry warnings that the rules could force factory closures and job losses.