Currently reading: ZEV mandate consultation launched: review could soften electric car sales targets

Review will look at softening EV sales targets from 2027-2035 as industry argues they aren't achievable

The UK government has launched a review that will consider whether to soften the zero-emission vehicle (ZEV) mandate targets for electric car sales from 2027 to 2035.

It will look to consult with car makers, the wider industry and other stakeholders to reduce the proportion of EV sales that brands need to make between 2027 and 2035, at which point all new vehicles must be zero-emissions under the current plan. 

The government said it aims to ensure the EV sales mix targets outlined in the ZEV mandate "remain pro-business and grounded in the real world".

Launching the long-promised consultation today (14 August), the government is inviting manufacturers, suppliers, charging companies, retailers and consumers to contribute their views on how to achieve the planned phase-out of pure-ICE vehicles by 2030.

The move comes just after the best month for EV sales in the UK since 2019, with registrations up 45% year on year in July to give them a market share of more than 25%.

The government said that growth is partly testament to the effectiveness of its new Electric Car Grant scheme, but also that the review will look to adapt ZEV sales rules in light of "challenging and complex global economic conditions, including supply chain disruption and tariff and trade uncertainty".

Saying it wants to "give industry certainty on the outcomes as quickly as possible", the government has imposed a 23 October end date on the consultation, meaning it will last just over two months. Sources had earlier suggested it would be capped at six weeks. 

There is a fear within government that the ZEV mandate will begin to impact the viability of car makers operating in the UK, putting jobs at risk.

This will be a significant consideration of the review. However, it's also possible that no changes will be made, or just minor edits, with all options said to be on the table still. 

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’s 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." 

Whatever the precise changes may be, the review will undoubtedly be welcomed by nearly all 'legacy' car makers, which have long argued that the targets aren't reachable and don't keep pace with market interest in EVs.

This will be their chance to have their say on the record and try to influence a change in the policy. 

The ZEV mandate was introduced in 2024, when 22% of sales had to be electric. It rose to 28% in 2025 and is at 33% this year. Next year’s target, the first impacted by the review, is at 38%. From there it rises sharply to 52% in 2028, to 66% in 2029 and to 80% in 2030. There are no set target for the years between 2030 and 2035 (100% electric) at this stage.

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The wider view of industry is that this is simply not achievable. The most recent set of car sales data published by the Society of Motor Manufacturers and Traders revealed that EV sales rose 44.5% year on year from July 2025 but the current run rate of EV sales this year is still only one in four, when one in three is needed.

One review has already taken place on the ZEV mandate. This lowered fines for non-compliant cars sold from £15,000 to £12,000 and allowed a greater degree of flexibility between banking and borrowing EV sales against future years, as manufacturers introduced EVs as different rates.

Low-volume car makers were also given more time to apply and certain exemptions applied, while hybrid cars were confirmed as being allowable for sale from 2030 until 2035.

The review will be the first major policy intervention into the industry by the Andy Burnham administration.

There is a genuinely held fear about what impact the ZEV mandate will have on car makers that have invested in facilities and people in the UK over many years and what it will do to their viability and therefore jobs.

There is also awareness that new Chinese entrants to the market aren't suffering in the same way as the 'legacy' car makers in having to make a pivot towards EV. They won't lose out on jobs or cancel any market investment into the UK in the way that existing stakeholders will.

The full scope of the review isn't yet known, but it’s possible that targets for the years 2031 to 2034 could also be set. There’s no indication yet if the 2035 deadline itself is up for review.

However, given the role that the UK car parc plays in the wider net-zero legislation for 2050, it has long been anticipated and accepted that an overwhelming majority of new car sales must still be electric by 2035 if the legally binding net-zero by 2050 will be realised. 

Writing last week in a blog post, the SMMT chief executive Mike Hawes said that despite record sales for EVs demand was tracking some 10-13% below levels needed for the industry to be ZEV mandate compliant in its current form.

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He argued that the mandate can force supply but it cannot force demand, and as such car manufacturers were being forced into spending billions on the likes of discounts to artificially stimulate demand to bridge the gap.

"This is not a sustainable business model," he wrote. "Every pound spent on discounting is a pound diverted from the investment needed to keep the UK competitive.

"It also matters for decarbonisation itself, since EVs built in the UK typically carry less embedded carbon than many of those from elsewhere – a point often ignored or dismissed as 'out of scope', despite climate change being a global issue. And if selling vehicles in the UK becomes increasingly costly as a result, the case for investing here is thereby weakened, irrespective of where those vehicles are sold."

Hawes added that not one single manufacturer selling in the UK, be it ZEV mandate-compliant or not or domestic or importing, believes the UK is on track to hit the 2030 target of an 80% market share for EVs.

"Urgent reform of the mandate is therefore needed, alongside renewed commitment from all stakeholders to build consumer confidence," he concluded.

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Mark Tisshaw

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Title: Editor

Mark is a journalist with more than a decade of top-level experience in the automotive industry. He first joined Autocar in 2009, having previously worked in local newspapers. He has held several roles at Autocar, including news editor, deputy editor, digital editor and his current position of editor, one he has held since 2017.

From this position he oversees all of Autocar’s content across the print magazine, autocar.co.uk website, social media, video, and podcast channels, as well as our recent launch, Autocar Business. Mark regularly interviews the very top global executives in the automotive industry, telling their stories and holding them to account, meeting them at shows and events around the world.

Mark is a Car of the Year juror, a prestigious annual award that Autocar is one of the main sponsors of. He has made media appearances on the likes of the BBC, and contributed to titles including What Car?Move Electric and Pistonheads, and has written a column for The Sun.