The electric vehicle industry has reacted to reports that the UK Government is set to launch another consultation on weakening the ZEV Mandate.
According to reports in The Times, a consultation could be put in place as early as this week on reducing the Mandate from current 2030 levels of 80% of new registrations being battery-electric vehicles to potentially as low as 50%.
A letter has now been sent to Transport Secretary Heidi Alexander and signed by a large number of charge point operators, such as Believ, Fastned, Ionity, Osprey Charging, as well as fleet operators, industry groups and charger companies citing concerns on the possible new Mandate review.
The groups warned in the letter that changing the rules “potentially undermines billions of pounds of committed investment in the automotive sector, chargepoint sector, business fleets and battery manufacturing and recycling” and would prevent more families from accessing the savings EVs can provide. Signatories also included BT Group and Openreach, drivers’ association EVA England, and Greenpeace.
The potential review comes after significant alterations to the Mandate almost every year since its creation as a UK Government policy.
Changes
In 2020, the-then Prime Minister Boris Johnson announced the phase-out date for new petrol and diesel vehicles by 2030. Then, in 2023 it was pushed back to 2035 by Prime Minister Rishi Sunak, only months before the Mandate was due to commence in January 2024.
Following the general election of a Labour administration, a further consultation was opened on Christmas Eve 2024 on returning to the 2030 phase-out date – a Labour Party manifesto commitment.
The UK Government responded to this consultation in April last year, announcing a return of the 2030 date, and new flexibilities for vehicle manufacturers to meet targets.
SMMT
It also comes as the SMMT’s Mike Hawes penned an op-ed piece which criticised those stating the ZEV Mandate was working, and said such claims were made by “those detached from the commercial realities of building and selling vehicles”.
The SMMT often cite the overall figure of 33% of new vehicles being battery-electric (BEV) this year as the target, while other industry groups claim that, when flexibilities are put in place, it is more like a figure near 25%.
Figures from July put the number of BEVs above the 25% figure, which was cited by some as showing the Mandate was succeeding. But the SMMT in its own figures and comment used similar figures to illustrate that it was below the 33% target.
Job losses
The situation follows Andy Burnham becoming the Prime Minister after being elected leader of the Labour Party. He was supported by the Unite union, whose general secretary Sharon Graham has been opposed to the Mandate, claiming that keeping it in the current format could result in job losses in vehicle manufacturing.
But according to research by ChargeUK, tens of thousands of jobs are at risk from a stalled transition to electric vehicles in the charging and infrastructure sector, with charge point operators stating investment could halve if the ZEV Mandate was altered again – reducing up to £2 billion in capital expenditure on infrastructure rollout – with a knock-on impact on the UK’s ability to seize the £385bn transport electrification prize.
The potential consultation also follows Department for Transport (DfT) data showing that around one in five PHEV owners have no way to charge their vehicles at home, alongside European Commission research finding that plug-in hybrids emit 3.5 times more CO2 in real-world driving than official test figures suggest.
New polling from Savanta for the Climate Barometer Tracker has also found that over half (54%) of Labour MPs support the target of phasing out petrol and diesel vehicles by 2030, compared to less than one in five (17%) who oppose it.
Colin Walker, Head of Transport at the Energy and Climate Intelligence Unit (ECIU), said:
“The ZEV mandate is doing exactly what it was designed to do: driving competition between manufacturers, bringing down the cost of new EVs, growing the second-hand market, and helping more and more drivers end their exposure to expensive petrol prices by making the shift to electric driving. Despite calls from parts of the industry for the Government to weaken its EV sales target, the majority of MPs recognise that sticking to the 2030 phase-out is necessary if the savings that come from EV ownership are to be accessible for all British households.”
Blanche Shackleton, interim Executive Director of Green Alliance, said:
“Climate-fuelled wildfires are engulfing Europe, the price of oil is surging again, and Chinese manufacturers are knocking on the door. The signs are clear that Andy Burnham’s government must double down on the switch to electric vehicles to deliver lower costs for households and businesses while driving investment in a futureproofed UK automotive industry. The Zero Emission Vehicle Mandate is working and its ambition must be maintained.”
James Alexander, CEO of UK Sustainable Investment and Finance Association, said:
“The Zero Emission Vehicle (ZEV) mandate is an absolutely vital mechanism for driving investment into the UK’s electric vehicle (EV) charging infrastructure. It has given the market the confidence to support the roll-out of charging points across the country, which are helping to electrify our transport system.
“Watering down the mandate risks undermining this flow of capital, just as increasing numbers of motorists are turning to cheaper EVs. The government must maintain the existing targets in this framework, so investors have the long-term policy certainty they need to continue financing this crucial sector.”
Abby Chicken, Head of Sustainability at Openreach, said:
“We’re already electrifying the UK’s second largest commercial fleet – with more than 7,000 EVs on the road and over 4,000 charging points in place. This is a long-term commitment and we’re continuing to invest as we work towards our targets.
“And while we’ve made good progress, there’s more to do. Keeping that momentum going will be important. Clear, consistent Government policy can help businesses keep investing, alongside support to tackle challenges like vehicle availability, upfront costs and reliable charging.”
Luisa Melloh, Researcher at Climate Barometer, said:
“There’s more support than opposition among MPs for the 2030 ZEV mandate and the large majority also support investing in EV incentives and infrastructure. Switching to electric vehicles is not only a key part in delivering on the government’s own net zero target, it is also important for tackling air pollution in urban environments and increasing the affordability of environmentally friendly transport. Maintaining the ZEV mandate would be a key signal that the government is committed to tackling climate change in a way that is affordable and accessible to all.”
Ben Nelmes, CEO of New AutoMotive, said:
“The ZEV Mandate is doing its job: accelerating the transition to clean transport, lowering costs for families, and giving businesses the certainty they need to invest billions in the UK economy. Carmakers are already meeting their compliance targets, EV sales are hitting record highs, and prices are coming down. Weakening or watering down these targets now would snatch defeat from the jaws of victory, sending a damaging signal to investors and locking British drivers into high fuel costs for longer. The government must hold its nerve, maintain long-term policy stability, and keep the UK leading the global race for electric transport.”
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.”
Tanya Sinclair, CEO, Electric Vehicles UK, said:
“The ZEV mandate isn’t the problem. The problem is many of those responsible for delivering it are spending more time complaining about demand than creating it.
“Car manufacturers are among the biggest and most sophisticated marketers in the world. Claims that demand simply isn’t there ring hollow. They know better than most that demand doesn’t just appear. It is built.
“The Mandate isn’t too ambitious. It is deliberately flexible. Nor are EV sales falling short of requirements.
“If everyone involved spent half as much time building consumer demand – as we do at EVUK – as they do arguing over percentages, we would be much closer to a fully electric future.”
Gurjeet Grewal, CEO, Octopus Electric Vehicles, said:
“The ZEV mandate is working. It’s giving manufacturers the confidence to invest and drivers the confidence to switch. We’ve seen strong global investment in the UK because manufacturers see a market with clear policy direction. Weakening the mandate now would send exactly the wrong signal to businesses looking to create jobs and invest here.
“EVs are increasingly the best-value cars on the road and sales continue to grow at a remarkable pace. The last thing we need is another policy wobble that confuses consumers and puts investors off just as the transition is accelerating.”
Andy Palmer, Chair, EVUK, said:
“Plug-in hybrids are transition technology. The destination remains BEV, with efficient REEVs playing a useful role along the way.
“The key is plugging into cheap-rate electricity wherever possible – overnight at home, at work or on the street. That means getting the infrastructure right, and educating the consumer at the point of sale.
“And if hybrids are still needed beyond 2035, they should be efficient REEVs, designed to run primarily on electricity rather than petrol cars carrying a token battery.”
Simon Smith, CEO, Voltempo, said:
“Plug-in hybrids only work if people plug them in. That means convenient, affordable charging where cars actually park – but infrastructure alone isn’t enough. We also need proper driver education so people understand when, where and how to charge to get the best from the technology. If PHEVs are part of the transition, we need to make sure they’re being used as intended.”
Toby Poston, Chief Executive, BVRLA, said:
“The transition to cleaner, greener vehicles relies on people being informed. Dealers need to understand the technology so they can help their customers buy with confidence. The BVRLA is training dealers to give them that knowledge to pass on. Plug-in hybrids can deliver real fuel and emissions savings, but the technology only works as intended if drivers understand how to use it. For people to switch to hybrids and full electric vehicles, education is essential.”
Kelly Butler, Director of External Affairs, BEAMA, said:
“Presenting weaker EV targets as good news for household finances simply doesn’t add up. The government’s own figures show that in many cases an EV is already cheaper to run than a petrol or diesel car, saving drivers up to £1,400 a year. If policymakers want to reduce the cost of living on a long-term basis, they should focus on addressing the cost imbalance between electricity and fossil fuels, and providing more flexible tariffs.
“Weakening the ZEV mandate comes with a significant carbon cost. Our analysis suggests that if the 2030 ZEV target is lowered from 80% to 50% and the reduction in EV sales is made up by petrol and diesel cars, those additional vehicles could generate almost 19 million tonnes of carbon emissions over their lifetimes. That’s equivalent to around two months of emissions from the UK’s entire domestic transport sector.
“Investment in the UK risks becoming another casualty of this policy flip flop. Manufacturers have made long-term commitments on the basis of the transition Government asked them to deliver. Those decisions cannot simply be switched on and off when targets change.”
“Changing the mandate will damage confidence in the UK. If Government wants industry to keep backing electrification, it needs to show businesses that the policy direction will hold.”
Andrew Clint, CEO, myenergi, said:
“Weakening the ZEV Mandate would be a mistake at a time when the UK needs policy certainty and the confidence to stick with a long-term plan. If the priority is reducing the cost of living, slowing electrification is hard to justify.
“Charging an EV overnight costs a fraction of filling a petrol car, and when combined with home solar, battery storage and smart energy management, households can take even greater control of all their energy costs. The UK has spent years encouraging manufacturers, installers and the wider supply chain to invest in electrification, and businesses have invested billions on that basis. Changing the rules again creates uncertainty just when industry needs confidence.”
Image courtesy of Green Car Guide
