Another consultation on the Zero Emission Vehicle (ZEV) Mandate and the 2030 ban on petrol and diesel vehicles has been launched by the UK Government.
It added that “new petrol and diesel cars will be phased out by 2030 and all new cars and vans will need to be fully zero emission by 2035”, which suggests there won’t be potential in the consultation to review the ban dates.
Instead, the consultation asks for views on how the UK gets to the target at 2030, and whether the existing annual targets for manufacturers “remain appropriate and deliver the long-standing commitment to review the ZEV Mandate by 2027”.
It comes after months of speculation about such a review – which was planned for 2027 – and whether it may be bought forward by either the Starmer or now Andy Burnham-led government.
The Department for Transport said the consultation was happening due to “challenging and complex global economic conditions, including supply chain disruption and tariff and trade uncertainty”.
As a result, the UK Government said it is “reviewing targets to ensure they remain pro-business and grounded in the real world”.
It comes as battery-electric vehicles hit more than 25% of new car sales in the year to-date, meaning that once flexibilities introduced by the UK Government are considered, the ZEV Mandate is on-track – or even being outpaced.
The Department for Transport said it was “starting the review now to give industry certainty on the outcome as quickly as possible”, rather than as planned in 2027.
Business, Innovation, Science and Trade Secretary, Jonathan Reynolds, said:
The UK’s automotive sector is vital to our economy and future growth and we’re determined to keep it that way as we get on with reindustrialising Britain to deliver good growth in every postcode.
This consultation is about listening to industry, examining the evidence and making sure the mandate continues supporting investment, innovation and competitiveness, so Britain’s car sector can thrive.
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 £7.5 billion, 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.”
Mike Hawes, SMMT Chief Executive, said:
“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.
“Regulatory targets are now running ahead of current consumer demand, so this review is a timely opportunity to optimise the pace of change. This is a regulation that increasingly dictates consumer choice – and therefore automotive companies’ future strategies and viability – so it must work for all involved. That means a commercially sustainable transition that supports UK competitiveness, investment and jobs while delivering greater choice and affordability for motorists – with a rapid resolution needed to unlock those benefits for everyone.”
Delvin Lane, CEO, InstaVolt, said:
“Ultra-rapid charging investment doesn’t happen on the back of uncertainty. We’ve invested hundreds of millions of pounds into the UK’s charging network because government policy gave us a clear runway to plan against. Softening the mandate at this stage risks spooking exactly the private capital that’s been building the infrastructure this transition depends on.
“Meanwhile, hundreds of thousands of drivers are choosing to go electric. The numbers back this up: BEVs made up 27% of new car registrations in July, up 49% year-on-year, and staying above the ZEV Mandate trajectory for a second month running. OEMs need to recognise that this demand is real and seize it, or risk watching competitors take the opportunity they’re hesitating over.”
Toby Poston, Chief Executive of the BVRLA, said:
“Today’s consultation on the ZEV Mandate provides a vital opportunity to take stock of the UK’s transition to zero emission vehicles. BVRLA members have already invested more than £36 billion in 750,000 electric vehicles and have been the driving force behind the UK’s shift to electric mobility. We will engage fully with this consultation, representing members from across the sector and ensuring Government understands where policy is working, where greater support is needed, and how we can keep the transition moving with confidence.”
Ginny Buckley, the chief executive of Electrifying.com, the electric car buying and advice site, said:
“Debate around the ZEV mandate is increasingly polarised, but the biggest threat to EV sales is constant flip-flopping and a lack of clear direction.
“I’d rather see no change to the existing mandate, however, life is all about compromise. I understand the pragmatic case for a 2030 target closer to 60%, while recognising plug-in hybrids with meaningful electric range. Mild hybrids are different: they can’t drive on electric power alone and remain fundamentally petrol cars.
“Whatever Government decides, it then needs to stick. Drivers need confidence in where we’re heading, and the charging industry needs certainty to keep investing ahead of demand.”
Tanya Sinclair, CEO of Electric Vehicles UK, said:
“There is a remarkable cognitive dissonance in a government who is asking whether we should extend the availability of polluting vehicles amid our hottest summer on record.
“It hasn’t rained for weeks, our ground is parched, air quality is poor. Electric vehicles are the most powerful public health and climate change intervention we have to mitigate these changes, as much as we’re able.
“And to top it off, they are cheaper to buy and drive, and fantastically equipped with the latest tech. It’s all upside, so why isn’t this government doing everything in its power to enable their uptake?”
Gurjeet Grewal, CEO, Octopus Electric Vehicles, said:
“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.
“Carbon Brief estimates weaker targets could cost consumers £3bn a year in expensive petrol by 2030. We should be accelerating the transition, not creating another policy wobble that leaves drivers, businesses and the UK economy paying the price.”
Ryan Johnson, Senior Vice President and Managing Director for UK & Ireland, Enterprise Mobility, said:
“We applaud the government’s decision to adjust the mandate, and we support the UK’s transition to electric vehicles, but the pace of change must reflect the reality on the ground.
“As one of the UK’s largest rental and fleet operators, we see these challenges first-hand. Our customers need vehicles that work for their journeys, budgets and businesses — with the confidence that the charging infrastructure is there when they need it. A pragmatic and realistic approach will give businesses the confidence to invest while ensuring drivers are brought with us.
“EVs need to be an attractive, affordable and practical choice. Getting the framework right now will help make the transition sustainable for the long term.”
Richard Jones, CEO of Zenith, said:
“We welcome the Government’s review of the ZEV Mandate as an opportunity to set a transition pathway that works for all customers while delivering a net benefit to the UK economy. Zenith is a strong advocate of the move to electric vehicles, however, the pathway must reflect the realities facing customers and be matched by policy action that supports both new and used car drivers.
“The transition will only succeed if used car buyers are prepared to adopt BEVs at huge scale, yet they remain completely overlooked by policy actions and support. The motorists yet to switch face different economic barriers to early adopters, and addressing those challenges will be critical. For example, there is a two-tier running cost reality for drivers making the switch. If you can charge from home, you will save money by switching to a BEV, and if you mainly rely on public charging, it will cost you more when compared to a petrol or diesel car.
“A successful transition must balance ambition with affordability, support UK investment and consumer confidence, and ensure the benefits are felt across the wider economy.”
Robert Forrester, CEO of Vertu Motors, said:
“The UK new car market has suffered a number of years of dislocation due to the state intervening via the ZEV mandate. Its targets and the threat of fines have led to billions of pounds in discounts on battery electric vehicles to increase demand. This has meant fewer jobs, lower investment and reduced economic activity across the whole sector with profit pools reduced.
“This is only set to worsen as the targets deviate from reality at an increased pace. The industry will be in an awful place with no change. It is a good sign from the new Government that it wants to create jobs, wealth and economic activity ahead of delusional green targets. The consultation is therefore welcomed.”
Per Voegerl, CEO of United Rental Group said:
“For the transition to electric vehicles to work, it must work for the thousands of small and medium sized businesses across the UK which rely on vans every day.
“For electric vans in particular, higher upfront costs, concerns around battery range and uncertainty over residual values continue to make the switch difficult, especially for smaller businesses with limited capacity to absorb additional costs.
“Businesses need confidence that switching is commercially viable. The ZEV Mandate review is an opportunity to address the gap between targets and real-world demand – supporting decarbonisation while ensuring businesses have the choice, affordability and flexibility they need to make the transition successfully.”
