The National Franchised Dealers Association (NFDA) has written to Keir Mather MP, parliamentary under-secretary of state for aviation, maritime and decarbonisation, calling on the Government to bring forward its planned review of the Zero Emission Vehicle (ZEV) Mandate and publish its findings before the end of 2026.
The trade body said an earlier review is needed because several of the assumptions underpinning the mandate have changed significantly since it was introduced.
In its submission, NFDA highlighted ongoing challenges around electric vehicle (EV) affordability, charging infrastructure, battery costs and slower-than-expected consumer uptake.
The association argued that these issues make it important to reassess the policy against current market conditions.
Sue Robinson, chief executive of NFDA, said: “The industry remains committed to the transition to zero-emission vehicles, but it is important that policy reflects the realities facing consumers, retailers and manufacturers.
“An earlier review would provide an opportunity to assess current challenges and help ensure the ZEV Mandate supports a sustainable and achievable transition.
“A review would help provide greater certainty for businesses and consumers alike, while ensuring the pace of change remains aligned with infrastructure, affordability and market demand.”
Dealers need greater clarity
NFDA said publishing the review before the end of 2026 would provide greater clarity for retailers, manufacturers and consumers while supporting continued progress towards the UK’s decarbonisation goals.
The call comes as pressure grows on ministers to revisit the ZEV Mandate sooner than planned. The Government has previously committed to publishing a review in 2027.
The House of Commons Business and Trade Committee recently warned that the review should be completed this year to help avert what it described as an “existential risk” to the UK automotive industry.
The committee argued that current ZEV sales targets no longer reflect market demand, citing weaker-than-expected EV uptake, concerns over battery supply chains and the prospect of future trade barriers with the European Union.
Evidence submitted by manufacturers including Jaguar Land Rover, Ford and the Society of Motor Manufacturers and Traders suggested the industry is spending around £5 billion annually on EV discounts to stimulate demand and avoid penalties under the mandate.
In a letter to trade and transport ministers, the committee warned that the ZEV Mandate is “severely hurting profit margins of UK manufacturers” and claimed it is “actively redistributing value away from UK producers” through the compliance credit system.
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