7:28 am, August 14, 2026
EV demand is not strong enough to support ZEV mandate goals and the targets need to be watered down.
That is the clear message of dealers and industry experts, who have argued that the pace of change needs to be slowed down.
It comes after multiple franchised retailers named the mandate as the piece of legislation they would most like to see changed, when asked by Car Dealer earlier this week.
When quizzed on what specifically should be amended, dealers called for the targets to be softened to better align with demand.
As a director of Swansway, Peter Smyth has seen the impact of the mandate first hand. He says that buyer behaviour has changed towards EVs and hybrids but the transition is still being handled too ‘aggressively’ by the government.
‘People are becoming more and more accepting of EVs, and definitely more and more accepting of hybrid vehicles,’ he told Car Dealer.
‘They [the Government] just need to tone it down a bit. I think we need to be on the trajectory because the vast majority of OEMs have done the R&D now, they’ve tooled up and they’re on the journey.
‘What they need to do is just tone it down a bit, make the target more achievable and natural to customer demand.
The 61-year-old is now calling on the genuine EV target to be reduced to between 25% and 30%, despite admitting there is little chance of it happening.
He added: ‘There is absolutely no chance of going that low because the figures at the moment are being massaged by large fleets and self-registrations by the OEMs, who are then taking the loss and leaking them into the marketplace.’
Car Dealer reported last week that the government is considering watering down ZEV Mandate targets to as little as 50%.
The Times reports that the Department for Transport is set to launch a consultation this week proposing further relaxations to the controversial rules.
Under the existing mandate, 33% of manufacturers’ new car sales are required to be zero emission this year, with the headline target rising progressively to 80% in 2030.
However, The Times believes that ministers will now consult on lowering the 2030 requirement to 70%, 60% or potentially just 50%.
‘Unsustainable cycle’
Vicky Hart, marketing director at Waylands, says that the fundamental problem with the current ZEV framework is that manufacturers and retailers were being made responsible for a lack of demand.
She warned that manufacturers are increasingly relying on incentives and discounting to hit targets, with dealer profits being hit as a result.
‘The biggest issue with the current ZEV framework is that it places the compliance burden on supply when the principal challenge is demand, she told Car Dealer.
‘Manufacturers and retailers are being required to hit increasingly ambitious targets, often through costly incentives and discounting, despite consumer adoption not keeping pace.’
Looking ahead, Hart says that she wants to see three key changes to the way the mandate is operated: Greater flexibility, More focus on stimulating demand and a recognition of the importance of the used EV market.
She added: ‘If the mandate is to work for the industry as a whole, I believe three key changes are needed. Firstly, greater flexibility within the annual targets would help avoid excessive discounting that ultimately damages profitability and residual values.
‘Secondly, more focus should be placed on stimulating retail demand through consumer incentives, charging infrastructure investment and public education, rather than relying solely on supply-side targets.
Finally, policymakers should recognise the importance of the used EV market, as this is where many consumers will make their first move into electric.
‘Supporting battery health certification, used EV financing and consumer confidence measures would have a significant impact.
‘Without these changes, the industry risks creating an unsustainable cycle of discounting that undermines residual values and dealer profitability, ultimately slowing rather than accelerating the transition.
‘The objective of increasing EV adoption is the right one, but success will come from creating sustainable demand rather than forcing volume into the market.
‘A framework that balances environmental ambition with commercial reality will ultimately deliver better outcomes for consumers, manufacturers and retailers alike.’
Pricing and demand are problems
As well as dealers, a number of other industry experts have also been critical of the ZEV mandate.
Philip Nothard, insight director at Cox Automotive International, has called for greater focus on the demand side of the transition.
‘A successful transition requires stronger demand-side measures, recognising that cost of living pressures continue to influence purchasing decisions, he said. ‘Increasing vehicle supply alone is unlikely to bridge the gap between regulatory targets and real-world consumer demand.’
The experienced figure says that more certainty is now needed, to allow the industry to continue its path towards greener vehicles.
‘Fundamentally, what the industry requires more than anything is certainty, he said. ‘Without this, we will always struggle to deliver a sustainable, zero emission solution.’
Ian Plummer, chief customer officer at Auto Trader, said price remained one of the biggest factors determining whether consumers chose an EV.
He said EVs sold well when their upfront and running costs were competitive with equivalent petrol or diesel cars, but warned that government grants and manufacturer discounting could not provide a permanent solution.
‘The success of the transition has been heavily hinged around price so far,’ he told Car Dealer.
‘Grants and discounting can’t go on indefinitely. The industry and government need to find a more economically viable and sustainable solution that importantly doesn’t knock consumer confidence or send further mixed messages about the transition.’