The Government is expected to yield to pressure and water down electric vehicle (EV) sales targets under the Zero Emission Vehicle (ZEV) mandate.
It emerged at the weekend that ministers will meet with automotive industry representatives this week and are minded to ease the current targets, which lobbyist argue are trying to push EV adoption faster than British motorists are ready for it.
If ministers agree to new targets, they will launch a consultation on the potential changes to the policy.
According to the BBC, targets ranging from 50% to 70% of new car sales being electric by 2030 are under consideration, compared with the current requirement for 80% of new car sales to be zero emission by the end of the decade.
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.
The move follows sustained lobbying from dealership groups, vehicle manufacturers and trade unions, which argue that consumer demand has not kept pace with the pace of regulatory change.
Industry pressure grows
The ZEV mandate was introduced in 2024 and requires manufacturers to sell an increasing proportion of zero emission vehicles each year or face penalties.
The target increased from 22% in 2024 to 28% in 2025 and rises again to 33% this year, before reaching 80% in 2030.
Manufacturers that fail to meet the target face fines of £15,000 per vehicle, although they can purchase credits from rivals that exceed their requirements.
The Society of Motor Manufacturers and Traders (SMMT) has repeatedly called for an earlier review of the mandate, arguing that manufacturers have spent more than £10 billion supporting EV sales through discounts and incentives over the past two years.
An SMMT spokesperson told the BBC: “Unless there is urgent relief of the mandate, which is still running well ahead of demand and about to ramp up, then the cost will be in jobs, investments and the viability of some businesses.”
The National Franchised Dealers Association (NFDA) is also calling on the Government to bring forward its planned review of the ZEV mandate and publish its findings before the end of 2026.
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.
“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.”
Unite has also increased pressure on ministers to act. Unite general secretary Sharon Graham said the mandate in its current form was “significantly contributing” to job losses across the automotive sector.
The prospect of weaker targets has raised concerns among charging infrastructure providers and investors, who argue that policy certainty is essential to support long-term investment.
Research commissioned by ChargeUK and produced by consultancy LCP Delta concluded that weakening the mandate could significantly reduce investment in charging infrastructure over the next five years.
Thom Groot, CEO of The Electric Car Scheme, meanwhile said that diluting the ZEV mandate would be a ‘catastrophic own goal’.
“Consumer demand for EVs is growing, proof that the appetite is absolutely there,” he said. “Through salary sacrifice alone, we’ve seen demand for new EVs double in the past year.
“Consumers and manufacturers alike need consistency to plan and invest. Watering down these targets only benefits those who haven’t taken them seriously from the start. I would like to see the Government channel the momentum already gained into focusing on innovations and incentives that make EVs more accessible. We will make this clear in the review.”
Demand remains below target
The debate comes as EV registrations continue to grow but remain below mandated levels.
Battery electric vehicles accounted for 23.4% of new car registrations in 2025, according to SMMT figures, below the 28% target required under the ZEV mandate.
Industry representatives continue to point to concerns around charging infrastructure, vehicle affordability and residual values as barriers to faster adoption.
Welcoming news of a possible review, Nick Connor, chief executive of the Institute of the Motor Industry (IMI), said: “The government needs to strike a balance right now. Targets have to be realistic and deliverable, for manufacturers, for the supply chain, and for the consumers who’ll ultimately decide how quickly this transition happens.
“However, it’s important that a relaxed target isn’t seen by the wider sector as a signal to slow down on training and skills investment. Every electric vehicle already on UK roads, regardless of what happens to the 2030 target, will need a technician qualified to work on it safely throughout its life. Yet our latest IMI EV TechSafe data shows that only around a third of UK technicians currently hold an EV qualification.”
Downing Street is expected to meet automotive industry representatives this week to discuss the policy, with a formal consultation on revised targets anticipated in the coming weeks.
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