The UK’s ZEV Mandate must be reviewed immediately, as demand for electric cars continues to lag behind legally mandated targets, says the automotive industry.
One hundred percent of auto industry leaders surveyed by the Society of Motor Manufacturers and Traders (SMMT) in the latest State of the Automotive Nation report warned they are not on track to meet ZEV Mandate targets.
Almost three in four car company bosses also said they are “significantly behind” schedule.
They represent car firms with turnover of £94 billion, 113,000 employees and more than 96 percent of UK vehicle production – in other words, virtually the entire British automotive industry.
Under the ZEV Mandate, manufacturers are given targets for the number of electric cars they must sell each year. For 2026, the target is 33 percent. It goes up to 38 percent in 2027.
It then jumps to 52 percent, before reaching 80 percent by 2030. At present, those who fail to meet their EV quota risk a fine of £12,000 for every non-electric car they sell over the target.
There are flexibilities within the ZEV Mandate that reduce the headline figure for each brand. However, they are not enough to compensate for weak electric car demand, says the SMMT.
This year, the EV mix is running at just under 24 percent. And the natural demand, says SMMT chief executive Mike Hawes, is less than half that. “The underlying level of demand is simply not sufficient. No-one in the industry thinks we can get to 80 percent by 2030.”
This is despite car firms spending more than £12 billion on electric car incentives. Hawes says around £5 billion a year is helping to subsidise EV sales – “money that could otherwise have supported new models, jobs and investment”.
Such incentives, he added, are simply not sustainable.
Amend, not abandon ZEV targets
The SMMT wants a planned review of the ZEV Mandate to be brought forward as a matter of urgency.
The aim is to get the 80 percent figure amended. There has been speculation that the government will consider reducing it to 50-60 percent. However, this is now in flux following the resignation of Prime Minister, Sir Kier Starmer.
“We don’t want to rip it up,” insisted Hawes, “as this would send the wrong message. We don’t want it abandoned, but amended.
“Reforming the ZEV Mandate is not about weakening ambition; it is about making the transition achievable, protecting investment and ensuring the UK remains a place where automotive businesses can build, sell, export and grow. It is not a dilution, but a reality check, and makes the end goal more feasible.”
Hawes added that the window for action is closing and “we cannot wait for lengthy discussions”.
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