Proposed reforms to electric car sales in the UK could increase demand uncertainty, a UK charging company said, as the government confirmed the industry had met last year's sales targets.

Pod Point, majority-owned by EDF Energy, said weak demand for new cars meant revenue from charger and service sales would be £53m in 2024, against a target of £60m. Shares in the London-listed company fell by a third on Monday morning.

The auto industry has been warning of dire market conditions for more than a year, with a market-wide sales slowdown hitting electric vehicles particularly hard, as EVs still cost more upfront than gas-powered vehicles (although not in the long run).

The weakness has prompted the industry to lobby the UK government to relax sales quotas known as the Zero Emission Vehicles (ZEV) Directive. These rules force automakers to sell more electric vehicles each year.

The overall target for 2024 is 22%, rising to 28% this year, but carmakers also have significant "flexibility" allowing them to effectively reduce vehicle sales, and the government has launched consultations that are expected to further relax the rules.

The government confirmed on Monday that every carmaker in the UK will actually meet its targets - albeit using flexibilities - and avoid huge financial penalties for failure.

A spokesman for the Department for Transport (DfT) said: "Thanks to the flexibility of the ZEV Directive, we are confident that the entire market will comply with the 22% target and no car manufacturer will need to pay a penalty."

The statement confirmed a report by The Guardian, which found no carmaker would pay the fine, and was based on analysis by transport and environmental campaign group T&E. T&E called on the government to resist calls from manufacturers to weaken the rules, saying the mandate was working as planned.

The industry has complained that the rules are too strict amid falling demand. Mike Hawes, chief executive of lobby group the Society of Motor Manufacturers and Traders, said manufacturers must spend £4.5bn on discounting electric cars to make them attractive to buyers and meet targets.

He said: "It is clear that the industry is under significant pressure, even from brands that are complying with the regulations, asking the government to provide support for consumers or review the regulations to ensure that it can lead to vibrant markets, business Opportunity and the economy. “We all need growth. "

For charger companies, however, the prospect of further declines in EV sales will be a blow. Pod Point CEO Melanie Lane said the electric vehicle industry faced a "difficult market backdrop" and a "weaker-than-expected private electric vehicle market" which affected sales of its home chargers.

Pod Point stated that the difficult period will continue in 2025 and it is unlikely to meet market sales expectations. Consultations on changes to the ZEV directive "are likely to further increase near-term uncertainty for the industry," the report said.

A DfT spokesperson said: “2024 is a record year for the switch to electric vehicles, with 382,000 electric vehicles sold last year, a 21% increase on 2023.

“Enabling this switch will support the growth of the UK market as more people turn to electric vehicles and will provide access to a multi-billion pound industry that will create well-paid jobs for decades to come.”