ZEV mandate review imminent: government mulls softer sales targets
The government is set to launch a review that will consider whether to soften the Zero Emission Vehicle (ZEV) mandate targets for electric car sales from 2027-2035.
The review is set to last six weeks and will launch imminently. It will look to consult with car makers, wider industry and other stakeholders to reduce the proportion of electric car sales car makers need to make between 2027 and 2035, where the current plan is for all new vehicle sales to be zero emissions.
There is a fear within government that the ZEV mandate will begin to impact the viability of brands operating in the UK, putting jobs at risk. Among them are those who have a manufacturing base in this country and the impact this policy is having on their investment plans in the UK.
This will be a significant consideration of the review. However, it is also possible that no changes will be made, or just minor edits, with all options said to be on the table still.
Even so, the review will undoubtedly be welcomed by nearly all legacy car makers, who have long argued that the targets are not reachable and do not keep pace with market interest in electric cars. This will be their chance to have their say on the record and try and make a change to the policy.
The ZEV mandate was introduced in 2024 and 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%, but from there it rises sharply to 52% in 2028, to 66% in 2029 and to 80% in 2030. There is no set target for the years between 2030 and 2035 at this stage.
The wider view of industry is that this is simply not achievable. The most recent set of car sales data published by the SMMT 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 electric cars as different rates.
Low volume car makers were also given more time to apply and certain exemptions applied, while hybrids were confirmed as being allowable for sale post-2030 until 2035.
The review would be the first major policy intervention into the industry by the Burnham administration. There is a genuinely held fear about what impact the ZEV mandate will have on existing car makers here who have invested in facilities and people over many years and what it will do to the viability of these brands and therefore jobs.
There is also awareness that new Chinese entrants to the market are not suffering in the same way as the legacy car makers in having to make a pivot towards EV, and they will not lose out on jobs or cancel any market investment into the UK in the way existing entrants will.
The full scope of the review is not yet known but it’s possible targets for the years 2031-2034 could also be set. There’s no indication yet if the 2035 date itself is up for review but given wider net zero legislation for 2050, and the role the car parc has in that, 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 in 2050 will be realised.
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