UK government reviews EV sales targets amid pressure from motor industry

The United Kingdom’s mandatory electric vehicle sales targets are set for review following sustained pressure from automotive manufacturers. The government has announced it is considering reducing the proportion of new cars that must be zero emission by 2030, potentially lowering the figure from eighty per cent to fifty per cent. This consultation will run until late October as ministers assess whether current obligations are practical for British industry.

Under the existing policy, known as the Zero Emission Vehicle mandate, manufacturers are required to ensure a rising percentage of their annual sales are zero emission vehicles. The target began at twenty-two per cent in 2024 and is scheduled to increase to thirty-three per cent in 2026 before reaching eighty per cent by 2030. The proposed changes would allow car makers greater flexibility, potentially permitting hybrid vehicles to account for a larger share of sales if the pure electric target is reduced. Alternatively, the government may maintain the eighty per cent target but extend the compliance deadline to 2034. Regardless of these adjustments, the outright ban on selling new petrol and diesel cars after 2030 remains in place, as does the longer-term phase-out of hybrid sales by 2035.

Motor industry representatives have urged ministers to ease the targets, arguing that consumer demand for electric vehicles has not yet reached sufficient levels and that meeting current mandates is imposing excessive costs on manufacturers. This comes despite data from the Society of Motor Manufacturers and Traders indicating that electric cars accounted for a quarter of total UK sales during the first seven months of the year. Lisa Brankin, managing director of Ford of Britain, welcomed the government’s willingness to engage with the sector, stating that certainty is vital for both industry and customers. Mike Hawes, chief executive of the SMMT, described the review as a timely opportunity to adjust the transition strategy so it works for all stakeholders, noting that the original mandate was conceived under vastly different market conditions.

Transport Secretary Heidi Alexander stated that keeping targets under review ensures they remain practical while supporting British industry. She emphasised that the end goal of transitioning away from fossil fuel vehicles has not changed, but the government must take businesses along on the journey. The policy landscape has shifted significantly in recent years, with previous Conservative governments altering phase-out dates and introducing more gradual targets. Labour has previously criticised these changes as moving the goalposts.

Environmental groups and climate advocates have strongly criticised the potential dilution of targets. Tanya Sinclair, chief executive of Electric Vehicles UK, condemned the move as extending the availability of polluting vehicles during a period of record heat. The Energy and Climate Intelligence Unit calculated that reducing the sales target to fifty per cent would result in 2.6 million fewer electric cars on UK roads by 2035. Gurjeet Grewal, chief executive of Octopus Electric Vehicles, argued that weakening the mandate sends the wrong signal as electric vehicles become more cost-effective. The Green Alliance warned that lowering targets would lock in avoidable emissions and undermine the investment certainty manufacturers require. Meanwhile, global interest in electric cars has spiked due to rising petrol prices linked to geopolitical tensions.