The UK government is poised to soften the zero emission vehicle (ZEV) mandate, which requires car manufacturers to sell an increasing proportion of electric vehicles annually. Under the mandate, a third of every car maker's UK sales must be electric in 2026, rising to 38% in 2027, 52% in 2028, 66% in 2029, and 80% in 2030.
The legislation allows firms to meet their quotas by buying surplus 'credits' from other manufacturers or by converting reductions in emissions from their combustion-engined fleet into credits. However, car makers that fall short of their ZEV targets face fines of up to $16,000 per car sold over the allowance.
In 2030, sales of new pure-combustion-engined vehicles – those without some form of hybridization – will be outlawed. Second-hand vehicles will not be affected by the ban.
View Price on AmazonCar makers had lobbied intensely about the dramatic ramp-up in EV sales that they will be forced to pursue in the coming years. Many have already turned to offering discounts to stimulate sales of EVs and warned that this practice is unsustainable.
For example, Volkswagen sales boss Martin Sander told Autocar in March that it could be forced to raise prices of its combustion-engined cars to offset losses made on EVs – which would also make its EVs a more attractive proposition, in comparison.
Meanwhile, Stellantis Europe chief Emanuele Cappellano told Autocar the group – which owns Citroën, Fiat, Peugeot, and Vauxhall, among others – may shrink its UK operations because of the losses.
Mike Hawes, head of trade body the Society of Motor Manufacturers and Traders, said last week that EV "uptake is still not keeping pace with ambition".
Indeed, the reports come after the House of Commons' Business and Trade Committee warned the government the mandate "poses significant risks" to UK automotive in its current form.
Liam Byrne, committee chairman and Labour MP for Birmingham Hodge Hill and Solihull North, said the government's target to boost domestic vehicle production to 1.3 million by 2035 was "jeopardized" by the mandate.
But not every manufacturer was against the mandate. Renault CEO Fabrice Cambolive told Autocar in November 2025 that the European Union needs its own ZEV mandate to "smooth the trajectory" in ramping up electric car sales.
Some industry stakeholders have now hit out against reports of the mandate being softened. Vicky Read, chief of EV charging body ChargeUK, warned that reducing targets could "send the entire [EV] transition into a tailspin".
Source: autocar.co.uk
