2:48 pm, August 14, 2026
The Government has officially launched its long-awaited review of the ZEV mandate, amid a growing revolt among the automotive industry.
Car Dealer reported this morning (Aug 14) that retailers wanted to see the targets watered down, with experts calling the current situation ‘unsustainable’.
Ministers have now announced that a public consultation will take place, seeking the views of manufacturers, suppliers, charging companies, retailers and consumers.
The consultation will close on October 23, with the Government aiming to provide extra ‘certainty’ by reaching a quick decision.
Under the current rules, manufacturers must achieve a rising percentage of zero-emission sales each year, reaching 80% in 2030. The government’s wider plan is for all new cars to be zero-emission by 2035.
However, ministers have acknowledged concerns that the targets are too high, leading to significant discounting, which has hit dealer profits.
Confirming the latest consultation, transport secretary Heidi Alexander said: ‘The UK EV market is strong – sales are up, British manufacturers and charge point operators are investing billions, alongside our backing of £7.5bn, including our Electric Car Grant that has helped over 160,000 people make the switch.
‘It is right we keep targets under review to ensure they’re practical and back British industry. The end goal hasn’t changed – but we need to take business with us on the journey, and that’s exactly what we’re doing today, by making sure industry has the chance to shape how we get there.’
Despite EV sales continuing to rise, market share remains below this year’s current ZEV mandate target of 33%.
The target rises to 38% in 2027 before jumping to 52% in 2028, 66% in 2029 and 80% in 2030, although there are no official targets set between 2030 and 2035.
The SMMT has been among the most vocal bodies in calling for a review of the rules and the latest consultation has now been welcomed by the trade organisation.
Chief executive Mike Hawes said: ‘We welcome government’s consultation on the ZEV mandate and how it should change to better support the UK’s transition.
‘Industry remains fully committed to a zero-emission future, investing billions in new technologies, products and, along with government, consumer incentives.
‘The regulation was conceived, however, under very different conditions – cheaper energy, rapidly declining production costs, and more optimistic global demand expectations.’
Welcome respite
The Times reported last week that the government is considering watering down ZEV Mandate targets to as little as 50%.
That report suggested that ministers would consult on lowering the 2030 requirement to 70%, 60% or potentially just 50%.
Swansway director Peter Smyth, told Car Dealer he wanted to go even further and drop the pure EV requirement as low as 25%.
Meanwhile, Vertu boss Robert Forrester said change was as the mandate was doing ‘major damage to the UK economy’.
He told Car Dealer: ‘If I could make one policy change, it would be to reduce state intervention in the new car market as the ZEV mandate policy is causing major damage to the UK economy and the automotive sector in particular.’
Reacting to the latest news, he added: ‘The UK new car market has suffered a number of years of dislocation due to the state intervening via the ZEV mandate.
‘Its targets and the threat of fines have led to billions of pounds in discounts on battery electric vehicles to increase demand. This has meant fewer jobs, lower investment and reduced economic activity across the whole sector with profit pools reduced.
‘This is only set to worsen as the targets deviate from reality at an increased pace. The industry will be in an awful place with no change. It is a good sign from the new Government that it wants to create jobs, wealth and economic activity ahead of delusional green targets.
‘The consultation is therefore welcomed.’