The UK Government has launched a review of the Zero Emission Vehicle (ZEV) mandate, potentially introducing softer annual EV car and van sales targets for manufacturers while maintaining the 2030 phase-out of new petrol and diesel cars and 2035 zero-emission targets.
The consultation, brought forward from the original 2027 timeline, will examine whether existing annual targets remain appropriate as the automotive industry faces changing economic conditions, supply chain disruption and continued uncertainty around international trade and tariffs.
Manufacturers are currently on track to meet their 2025 ZEV targets, but the Government says global economic and trade uncertainty have changed the market.
Industry Divided on Mandate Changes
The Society of Motor Manufacturers and Traders (SMMT) and unions have claimed thousands of jobs are at risk if the mandate remains in its current format. Mike Hawes, SMMT chief executive, said: “We welcome Government’s consultation on the ZEV Mandate and how it should change to better support the UK’s transition.”
The industry remains committed to a zero-emission future, investing billions in new technologies and products. However, Hawes noted that the regulation was conceived under different economic conditions with cheaper energy, rapidly declining production costs, and more optimistic global demand expectations.
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“Regulatory targets are now running ahead of current consumer demand, so this review is a timely opportunity to optimise the pace of change,” Hawes said. “This is a regulation that increasingly dictates consumer choice – and therefore automotive companies’ future strategies and viability – so it must work for all involved.”
Charging industry representatives have pushed back against softening the mandate. ChargeUK has estimated that a stable mandate and wider transport electrification could create 334,000 jobs and deliver £385 billion in value to the UK economy.
New polling for ChargeUK found that only 37% of the public want the transition to electric vehicles to slow down. That figure falls to 21% among those who voted Labour at the 2024 general election, when reinstating the 2030 ZEV mandate was a manifesto commitment.
Delvin Lane, CEO of InstaVolt, warned: “Ultra-rapid charging investment doesn’t happen on the back of uncertainty. We’ve invested hundreds of millions of pounds into the UK’s charging network because government policy gave us a clear runway to plan against. Softening the mandate at this stage risks spooking exactly the private capital that’s been building the infrastructure this transition depends on.”
While manufacturers face immediate pressure to meet sales quotas, the broader debate reflects a fundamental tension between policy ambition and market readiness. Government targets must balance environmental commitments against economic realities, creating a challenging setting for all stakeholders invested in the transition.
EV Demand Accelerating Despite Headwinds
The review comes as demand for electric cars continues to increase in the UK. According to the Government, more than one in four new cars sold are now electric, with EV sales in July up 45% compared with the same month last year. More than two million electric vehicles are now registered on UK roads.
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The Government’s Electric Car Grant, offering up to £3,750 towards the purchase of an eligible new EV, has helped more than 160,000 drivers make the switch since its introduction.
For fleet operators, the review could have significant implications for vehicle availability, model choice and the pace at which manufacturers increase their zero-emission offerings. Toby Poston, chief executive of the BVRLA, said: “Today’s consultation on the ZEV Mandate provides a vital opportunity to take stock of the UK’s transition to zero emission vehicles.”
BVRLA members have already invested more than £36 billion in 750,000 electric vehicles and have been the driving force behind the UK’s shift to electric mobility.
Richard Jones, CEO of Zenith, highlighted the challenge for used car buyers: “The transition will only succeed if used car buyers are prepared to adopt BEVs at huge scale, yet they remain completely overlooked by policy actions and support.”
He noted a two-tier running cost reality: “If you can charge from home, you will save money by switching to a BEV, and if you mainly rely on public charging, it will cost you more when compared to a petrol or diesel car.”
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Infrastructure and Investment Concerns
The consultation highlights the importance of charging infrastructure in supporting the transition. The Government says there are now around 120,000 public charge points across the UK, alongside more than one million home and workplace chargers.
It is committing a further £600 million to expand the charging network, on top of £400 million already being used to deliver more than 100,000 additional public charge points.
Transport Secretary Heidi Alexander said the Government wanted to ensure the targets remained practical while continuing to support the automotive industry. “The end goal hasn’t changed – but we need to take business with us on the journey,” she said.
More than 30 organizations have signed a joint letter calling on the government to maintain its commitment to the ZEV mandate. Openreach, Climate Group EV 100, Zapmap, NetZero Fleet, the Electric Car Scheme, Ionity and Osprey warn that “watering down targets or significantly extending flexibilities would risk creating doubt in the minds of investors and would have a longer-term impact on business confidence.”
The consultation will run until October 23, 2026, with the Government promising to provide greater certainty on the outcome as quickly as possible.
