The Society of Motor Manufacturers and Traders (SMMT) has re-iterated its call for a review of the ZEV Mandate, following figures that UK vehicle production fell 7.5% in the first half of 2026.
It said that despite electric vehicles (EV) representing four in 10 cars built in the first half of the year, output for the segment was 8.6% down on last year.
The SMMT said it was “urging rapid implementation of the Modern Industrial Strategy”, in particular, on industrial electricity prices, and that “ZEV Mandate reform is also vital”.
It said that manufacturers were “investing billions in zero emission technologies, but regulation remains ahead of demand” making the cost of selling in the UK “untenable” and “undermining any case for local manufacturing investment.”
The news also came as the SMMT told The Guardian that manufacturers were waiting on “investment decisions on next model, next generation, which need a resolution, need an easing of the mandate.”
In addition, the newspaper said that returning business secretary Jonathan Reynolds “has indicated that the government is likely to water the mandate down.”
Mike Hawes, SMMT Chief Executive, said:
“Global vehicle production remains under intense pressure, and the UK is no exception. Global market weakness, trade pressures and uncompetitive costs are taking their toll. But decline is not inevitable.
“Urgent action on energy costs, reform of market regulation and improved trading arrangements with our global partners would ensure the sector can return to growth. And given that growth would be across every region in the UK, there is every reason for the new government to get behind the sector.”
It follows a poll at the Transport + Energy Fleet Electrification Forum last month, where private and public sector organisations added that their plans for electrification would not change, even if the Mandate was further weakened.
Gurjeet Grewal, CEO of Octopus Electric Vehicles, said that the Mandate “was working” and changing it would “send exactly the wrong signal”:
“The (Mandate is) giving manufacturers the confidence to invest and drivers the confidence to switch. Global brands like Chery are choosing the UK because they see a market with clear direction.
‘Weakening the mandate now would send exactly the wrong signal to businesses looking to create jobs and invest here.
“EVs are no longer tomorrow’s technology – they’re increasingly the best-value cars on the road. The last thing the industry needs is another policy wobble that confuses consumers and puts investors off just as the transition is accelerating.”
Image from Green Car Guide
