LONDON :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, without stronger demand from consumers.

As part of its wider net zero goals, Zero Emission Vehicle (ZEV) mandates introduced by Britain's previous Conservative government require carmakers to sell a higher proportion of EVs each year, or face fines. The rules came into force earlier this year.

But public demand for electric vehicles has not kept up, and without an urgent government intervention, both industry jobs and Britain's appeal as a manufacturing hub are under threat, carmakers have warned.

Finance minister Rachel Reeves said the government had launched a consultation "to look at the plans we inherited from the previous government."

"It is really important ... to make sure that we get the balance right and (have) proper support for the automotive sector, the car industry, in Britain," she told reporters.

"We want people to buy electric vehicles, but we want to keep jobs, we want to keep investment in Britain, and we're determined through the consultation to do just that."