10:46 am, February 12, 2026
Automotive business expert Professor David Bailey has called for a ‘comprehensive review’ of the ZEV mandate, amid mounting concern around the impact of the eco targets.
Bailey, who works at Birmingham Business School, has backed calls from the SMMT for the government to re-evaluate the measures, as manufacturers continue to heavily discount electric vehicles in order to meet goals.
The expert, who has previously written for Car Dealer, pointed to issues with charging infrastructure as a major concern and said that carmakers could not make a ‘government-mandated number of consumers’ want to buy an EV.
He added that the current targets are likely to lead to ‘market distortion rather than smooth transition’.
In an opinion piece published on the website, BlogsFromTheBlackStuff, Bailey said: ‘The direction of travel is clear. And as someone who has been driving EVs for over a decade, I am pretty confident that they really can work for many people.
‘What is far less certain is whether the current policy framework is calibrated in a way that delivers this transition effectively, affordably, and at scale.
‘It is in this context that the SMMT is right to call for a comprehensive review of the ZEV mandate.
‘The ZEV mandate requires manufacturers to ensure that an increasing proportion of their annual vehicle sales are zero-emission or face financial penalties. In principle, this creates a clear signal to accelerate supply. In practice, however, it risks placing regulatory pressure on the wrong part of the system.
‘Manufacturers can produce electric vehicles, but they can’t compel a government-mandated number of consumers to buy them, nor can they control the pace at which charging infrastructure, energy systems, and consumer confidence all evolve.
‘When regulation assumes demand will automatically follow supply, the result is often market distortion rather than smooth transition. Or put another way, all sticks and no carrots doesn’t make for a good policy.’
In his blog, Bailey pointed to several barriers that are holding back EV adoption, including high upfront costs, uncertainty over resale values, and concerns about charging access.
He said that any review would need to address those concerns, while also ensuring that the UK remains an ‘attractive location for manufacturing and innovation’.
‘A mandate that steadily increases supply targets without addressing these barriers risks forcing manufacturers into aggressive discounting strategies that satisfy compliance metrics but fail to reflect genuine consumer adoption,’ he wrote.
‘A rigid mandate that ignores these dynamics risks creating a self-reinforcing cycle of weaker than expected demand growth, heavy discounting, and rapid depreciation.
‘There is also the broader question of international competitiveness. The UK automotive sector operates in an international investment environment, where manufacturers allocate capital based on long-term regulatory stability and commercial viability.
‘While the UK has strengths in EV production and battery research, overall investment per capita in automotive electrification lags some European peers for a number of reasons (including high energy costs).
‘If the ZEV mandate is perceived as inflexible, especially in the absence of sufficient demand-side support, it could perversely deter future investment rather than encourage it.
‘A review would allow policymakers to ensure that the UK remains an attractive location for manufacturing and innovation while still pursuing ambitious emissions goals.’
You can read the full blog here.
