8:12 am, June 16, 2026
The car industry has reacted strongly to reports that the government is considering a major reduction in ZEV Mandate targets.
Vertu chief executive Robert Forrester has welcomed the move while others warned it could damage investor confidence.
Over the weekend, Car Dealer reported on a story first published in The Sunday Times that revealed Sir Keir Starmer has personally intervened in discussions around the ZEV Mandate, with ministers reportedly considering cutting the 2030 target from 80% electric vehicle sales to 50%.
Among the first industry leaders to back the reported plans was Vertu CEO Robert Forrester, who said the existing rules were forcing manufacturers into an unsustainable position.
‘Vertu sells, and believes in, electric cars, but the rules forcing the public to buy them are too harsh and need reform,’ he said.
‘If true, this change in government policy is positive news because petrol and diesel cars are likely to be rationed in the years leading up to 2030 because unachievable electric targets are being set before the public is ready.’
Forrester suggested the UK risked putting itself out of step with other major markets if the current targets remain unchanged.
‘The UK car industry is at a tipping point because fines of £12,000 per car and £15,000 per van are forcing the hand of manufacturers here, but elsewhere, notably the USA and the EU, EV mandates have either been relaxed or abolished.’
However, he also warned that any policy shift could still be vulnerable to political uncertainty.
‘Clearly there is internal debate in the government. Therefore, any change of leadership could set back this new pragmatic approach.’
While Vertu welcomed the prospect of additional flexibility, other parts of the industry urged caution.
Octopus Energy founder and CEO Greg Jackson argued that any relaxation of the targets would risk undermining the UK’s automotive future.
‘It looks like the government has chosen short-termist incumbent lobbying instead of the long term future of industry,’ he said.
‘The fossil fuel market is shrinking globally and our best hope is to speed up development of electric vehicles not go the other way.’
Jackson also warned that weakening the mandate could have wider consequences.
‘Fewer EVs will mean higher electricity bills for everyone as we spread lower demand over ever higher fixed grid costs, less investment in charge points and a very dim future for our car industry.’
Former Nissan and Aston Martin boss Dr Andy Palmer also criticised the reported move, arguing that repeated changes to government policy risk undermining the UK’s attractiveness to investors.
Palmer said: ‘If reports are correct that Starmer is preparing to dilute the ZEV Mandate to just 50% EV penetration by 2030, it feels like another sign of a government drifting from conviction to populism.’
He added: ‘The ZEV Mandate created certainty. It allowed global automotive companies to commit capital, technology and jobs to the UK,” he said.
Palmer pointed to recent investments including Nissan’s plans to build electric versions of the Leaf and Juke in Sunderland, alongside battery manufacturing projects in Sunderland and Somerset, arguing they had all been made against the backdrop of a clear regulatory framework.
‘When governments repeatedly change direction, investors start asking a simple question: “Why should we trust the UK?”‘
Industry analyst Matt Freeman, managing consultant at Solera Cap HPI, said that while some brands may welcome lower targets, the overriding concern for most OEMs is policy certainty.
‘The automotive industry plans years in advance. Product programmes, factory investment and supply chains are all built around long-term assumptions,’ he said.
‘What manufacturers need above all else is stability and a clear understanding of what the market is expected to look like.’
Freeman added that many manufacturers have already committed substantial resources to electrification and cannot simply reverse those decisions.
‘Businesses can adapt to change, but they need confidence to make long-term investment decisions,’ he said.
‘The most important thing for OEMs is a stable framework that allows them to invest with confidence. Whatever the target is, manufacturers need confidence that it will remain in place long enough for them to plan around it.’
