UK launches consultation on EV sales mandate

The UK government has launched a review of the ZEV mandate to potentially relax EV sales targets from 2027 to 2035. As part of the consultation, automakers, industry stakeholders, and other interested parties have two months to submit official statements.

Since 2024, the UK has set ambitious and steadily tightening sales targets for BEVs under its Zero Emission Vehicle (ZEV) Mandate. However, the automotive industry has repeatedly raised concerns about these targets. Under former PM Keir Starmer, the British government launched a consultation as part of a broader review of the regulations intended to give the industry and other stakeholders a voice. Now, the UK’s new Prime Minister, Andy Burnham, looks set to push ahead with the consultation – marking his first policy movements related to the automotive sector since assuming office this summer.

Here’s what the ZEV Mandate entails: introduced in 2024, it required manufacturers to ensure that 22 per cent of all passenger car sales were battery-electric vehicles. This quota rose to 28 per cent in 2025 and currently stands at 33 per cent for this year. The target for next year is 38 per cent, followed by a sharp increase to 52 per cent and 66 per cent in 2028 and 2029, respectively – and 80 per cent by 2030. For the years between 2030 and 2035, no fixed targets have yet been set. However, as it stands, a de facto ban on the sale of internal combustion engine (ICE) vehicles is planned for 2035.

The consultation, which runs until 23 October, focuses on the target years from 2027 to 2035. Rumours suggest the government may be willing to soften the ZEV Mandate during these years. In mid-June, the Sunday Times reported that discussions around reducing EV sales targets have been taking place amid pressure from both the industry and trade unions. Specifically, the requirement that 80 per cent of new car sales must be battery-electric vehicles by 2030 could be lowered to 50 per cent. However, this proposal was still attributed to the now-former PM Keir Starmer.

Meanwhile, British media and industry portals report that nearly the entire UK automotive sector believes the current targets are unattainable. This view is shared by the Society of Motor Manufacturers and Traders (SMMT), which argues that while the mandate can enforce supply, it cannot enforce demand. As a result, car manufacturers are being forced to spend billions on discounts and incentives to artificially stimulate demand – a model Mike Hawes, Chief Executive of the SMMT, describes as unsustainable.

Real-world sales figures are also not growing as quickly as the ZEV Mandate requires. The latest SMMT statistics show that while EVs account for a quarter of total registrations in the UK, they should represent a third to foster a healthy market.

The government is now engaging with the industry, emphasising its commitment to ensuring that the ZEV Mandate’s targets for the share of EVs in sales remain ‘business-friendly and realistic’. The consultation will explicitly seek input from manufacturers, suppliers, charging station operators, dealers, and consumers on how the planned phase-out of pure internal combustion engines can be achieved.

While a relaxation of the targets is considered likely in the UK, it is not a foregone conclusion. UK Transport Secretary Heidi Alexander describes the British EV market as strong: “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.” However, Alexander also acknowledged the need for regular reviews of the targets to ensure they are realistic and supportive of 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.” She also emphasised that the 2035 ban on ICE vehicle sales will remain in place.

The long-announced consultations, now underway, have been welcomed by the industry—particularly by the SMMT: “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,” said Mike Hawes in his official statement.

Other voices are also being heard. Vicky Edmonds, CEO of the non-governmental organisation EVA England, commented: “The Government should look honestly at why EV demand has not grown as quickly as expected. But the answer is not to lower the ambition of the ZEV mandate – which has been absolutely critical for creating a market of EVs that people want to buy. It has to be to fix the things that are stopping drivers from making the switch.”

Gurjeet Grewal, CEO of Octopus Electric Vehicles, is among the few supporters of the current targets: “The ZEV mandate is working – giving manufacturers confidence to invest and drivers confidence to switch. Weakening it now would send exactly the wrong signal, just as EVs are becoming some of the best-value cars on the road.”

Incidentally, the ZEV Mandate in its original 2024 form is no longer in effect. Penalties for non-compliant vehicles have already been reduced from £15,000 to £12,000 for manufacturers. Moreover, original equipment manufacturers (OEMs) have been granted greater flexibility in meeting the targets, similar to their EU counterparts. Sales can now be pooled and offset over several years.

autocar.co.uk, fleetnews.co.uk, gov.uk, smmt.co.uk, smmt.co.uk (Mike Hawes), facebook.com (EVA England), additional quotes via email