The measure comes amid a row between the government and the industry over the phasing out of the sale of new petrol and diesel cars.
Last month, Ford said the UK government’s mandate to produce and sell more electric vehicles (EVs) “just doesn’t work” without demand.
Lisa Brankin, Ford UK’s chair and managing director, told BBC Radio 4’s Today programme on that occasion: “The one thing that we really need is government-backed incentives to urgently boost the uptake of electric vehicles.”
The transport secretary said the automotive industry had been “stifled by a lack of certainty and direction” over the last few years.
“This government will change that,” she added.
The consultation proposes updates to the Zero Emission Vehicle (Zev) mandate, which sets out the percentage of new zero emission cars and vans that manufacturers will be required to sell each year up to 2030.
More than two-thirds of car manufacturers in the UK, including Stellantis, have committed to transitioning fully to electric cars by that year.
However, firms have also announced thousands of job cuts, partly because of EV targets.
The Department for Transport said the consultation would “restore clarity for vehicle manufacturers and the charging industry” so they “have the confidence to invest in the UK in the long term and drive growth in the UK automotive industry”.
The Energy and Climate Intelligence Unit think tank said the UK would meet its targets because the mandate took into account credits earned from selling lower-emission hybrid petrol and diesel vehicles, as well as sales of vehicles that were fully electric.
The 22% required to be achieved by each manufacturer is due to be reached as an average across the industry, according to the think tank.
Last month, EVs made up one in four cars sold in the UK, Ms Alexander said, with drivers “already embracing EVs faster than ever”.
“Today’s measures will help us capitalise on the clean energy transition to support thousands of jobs, make the UK a clean energy superpower, and rebuild Britain,” she added.
The government said the consultation would also be part of a “wider push” to make it easier and cheaper to charge electric cars.
There are now more than 72,000 public charging points in the UK, with another 100,000 planned by local authorities across England.
Mike Hawes, chief executive of automotive industry body the Society of Motor Manufacturers and Traders, said the automotive industry welcomed the government’s “review of both the end of sale date for cars powered solely by petrol or diesel, and possible changes to the flexibilities around the Zero Emission Vehicle Mandate”.
“These are both critical issues for an industry that is facing significant challenges globally as it tries to decarbonise ahead of natural market demand,” he added.
“With the 2025 market looking under even greater pressure, it is imperative we get an urgent resolution, with a clear intent to adapt the regulation to support delivery, backed by bold incentives to stimulate demand,” Mr Hawes said.
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