Labour is considering relaxing the planned ban on hybrid cars amid industry warnings that electric vehicle targets are too restrictive.
The Department for Transport had been expected to prohibit the sale of some hybrid models after 2030, when new petrol and diesel cars become illegal.
However, Whitehall sources told The Telegraph that ministers are reconsidering following intensive lobbying from manufacturers after carmakers warned that current restrictions on hybrids between 2030 and 2035 could damage investment in the UK automotive sector.
The potential policy shift comes as manufacturers struggle with the Government's Zero Emission Vehicle mandate, which requires 28 per cent of sales to be electric this year.
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Labour could amend rules for zero emission vehicles after backlash from the automotive industry
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The proposed rules would have prevented the sale of popular hybrid models such as the Range Rover Evoque and Ford Puma, due to concerns over high CO2 emissions.
Other, less polluting hybrids would still be permitted between 2030 and 2035, while the second-hand market would remain unaffected.
The restrictions were designed to address a contradiction where some large, heavy hybrids could remain on sale despite generating higher carbon emissions than the most efficient petrol cars.
To resolve this issue, the Department for Transport proposed using technical definitions, emissions limits, or average fleet emission limits to control the sales of more polluting models.
The plans were unveiled in December as part of the Government's strategy to reduce vehicle emissions and move towards net zero targets.
A Whitehall source suggested the Government is now open to allowing more hybrids to be sold until 2035, adding: "When we said everything was on the table, we meant it."
The option of allowing continued sales of a wider range of hybrids was "100 per cent" being discussed, according to the source, though no decisions have been made yet.
Business Secretary Jonathan Reynolds has promised "substantial changes" following a meeting last week with Nissan, which operates a large factory in Sunderland.
Any changes to the Zero Emission Vehicle mandate could impact sales of the popular Ford Puma
FORD
"Hybrids that use a petrol engine for 90 per cent of the time aren't an improvement for consumers, air quality or CO2 reduction. They're old, faulted technology, and a huge step backwards."
A spokesperson for the DfT said: "We have been working closely with car manufacturers on how we can support them to deliver the transition to electric vehicles. Our consultation looked at which new hybrid cars can be sold between 2030-35 and we are now carefully considering the feedback before we respond.
"We continue to back the sector by investing over £2.3billion to help the country make a supported switch to EVs, creating high-paid jobs, tapping into a multibillion-pound industry and making the UK a clean energy superpower as part of our Plan for Change."