The Government has retained the Zero Emission Vehicle (ZEV) mandate with British forms still required to meet strict deadlines on EV sales.
Business Secretary Kemi Badenoch confirmed the policy would remain in place regardless of Mr Sunak's decision to delay the petrol and diesel car ban until 2035.
It means UK firms will need to ensure over a fifth of new vehicles (22 percent) sold are fully electric from January 2024.
This target will rise annually with the goal expected to hit 80 percent by the end of the decade.
Manufacturers who fail to meet the regulations will be slapped with a £15,000 fine for each extra combustion vehicle they produce.
Ginny Buckley, Founder and CEO of Electrifying.com said the ruling meant the car industry could not afford to rest on their laurels.
She explained: "Despite the Government performing a handbrake turn on the 2030 ban on the sale of new petrol and diesel cars, the car industry can't afford to take its foot off the gas when it comes to selling electric cars due to stringent Government targets that are set to stay.
"This may not be the route manufacturers were hoping for, but with clarity on the road ahead, they need to focus on getting more affordable models to market as we know this is holding back many consumers from making the switch."
According to an Electrifying.com survey of 11,000 drivers, a whopping 87 percent thought electric cars were too expensive to switch.
However, experts feel the ZEV mandate could help bring down prices as manufacturers become desperate to offload electric models.
AutoTrader has said the average cost of an electric car is around 39 percent more than petrol and diesel models.
Ian Plummer, commercial director of AutoTrader commented: "It's likely price will need to play a big part in this.
"Electric vehicles carry a hefty price premium, so if prices come down, they'll suddenly become a far more attractive proposition for a greater pool of car buyers."2023-09-21T17:38:43Z dg43tfdfdgfd