UK government to ease EV sales mandate – but only slightly
The UK government has initiated a review of the ZEV mandate and is willing to relax electric car sales targets between 2027 and 2035. However, during the consultation, it became clear that the policy will be less watered-down than initially thought.
Image: Nissan
As reported by the _FT_, the government under Andy Burnham now takes the position that, by 2030, 60 per cent of all new cars in the UK must be fully electric – rather than the 80 per cent previously required by the current ZEV mandate. Additionally ,the remaining 40 per cent must be hybrid vehicles. Pure petrol and diesel cars will thus no longer be eligible or registration from 2030.
According to the _FT_, this information comes from “trusted circles.” The report states that Burnham’s government, as part of the ongoing consultations, has asked the industry about the proposed 60 per cent BEV target for 2030. Reactions to this proposal remain unclear, although the UK automotive industry had actually expected a more substantial relaxation of the rules. Prior to the consultation, both Ford and Nissan had already called for the new car sales target to be reduced to 40 or 50 per cent BEVs. Additionally, Peter Kyle – who served as Economic Secretary for Burnham’s predecessor, Sir Keir Starmer (under whom the consultations were still being prepared) – had hoped to lower the EV quota for 2030 from 80 to 50 per cent.
The _FT_ reports that the proposed 60 per cent target is itself contentious within Burnham’s government: “The business department is keen to cut the mandate as much as possible to help the UK’s car industry, which is under pressure from Chinese competition and wants a slower transition to EVs. Meanwhile, the Department for Energy Security and Net Zero (DESNZ) is pushing back as it tries to keep Britain on track with its climate targets.”
While EV registrations in the UK, as in almost all European industrial nations, have increased this year, the growth has been slower than in countries like Germany or France: the current EV share stands at 26 per cent – up from 22 per cent the previous year. UK-based automakers have long argued that the planned increase in the ZEV Mandate from 38 per cent next year to 80 per cent by the end of the decade is unrealistic.
To bridge the significant differences in positions, the aforementioned consultation is currently underway. It began in mid-August and runs until 23 October 2026. As part of this process, automakers, industry stakeholders and other interest groups now have just over two months to submit their official responses.
For context: since 2024, the UK has set extremely ambitious and progressively tightening EV sales targets under its ZEV Mandate. However, the industry has been vocal about its concerns for some time. For new Prime Minister Andy Burnham, the consultation inherited from the previous government is now the first political measure related to the automotive sector.
Here’s what’s at stake: the ZEV requirements were introduced in 2024, stipulating that manufacturers must ensure 22 per cent of all passenger car sales are electric vehicles. This quota rose to 28 per cent in 2025 and stands at 33 per cent this year. The target for next year is 38 per cent, followed by sharp increases to 52 and 66 per cent in 2028 and 2029, respectively – and 80 per cent in 2030. No targets have yet been set for the years between 2030 and 2035, though a de facto ban on internal combustion engine vehicle sales is currently planned for 2035. The ongoing consultation focuses on the target years from 2027 to 2035.
Meanwhile, British media and industry portals report that the overwhelming consensus across the UK automotive sector is that the current requirements are simply unachievable. This view is also held by the SMMT (Society of Motor Manufacturers and Traders), which argues that while the regulation can enforce supply, it cannot enforce demand. As a result, automakers are being pressured to spend billions on discounts and incentives to artificially stimulate demand. This is not a sustainable business model, emphasises Mike Hawes, Chief Executive of SMMT.
Incidentally, the original 2024 version of the ZEV requirements no longer applies in its initial form. In the interim, fines for non-compliant vehicles have already been reduced from £15,000 to £12,000 per vehicle for manufacturers. Above all, OEMs have been granted greater flexibility in meeting the targets – similar to EU manufacturers – allowing sales to be partially aggregated and accounted for over multiple years.