The Government has launched a consultation on the Zero Emission Vehicle (ZEV) Mandate, opening a review of the annual electric vehicle sales targets set for manufacturers ahead of the 2030 phase-out of new petrol and diesel cars. The consultation, announced today, runs until 23 October.
Vehicle manufacturers, suppliers, charge point operators, dealers, consumers and communities are being asked for their views on the pathway to ending sales of new petrol and diesel cars by 2030, and to all new cars and vans being zero emission by 2035. The consultation has been launched jointly by the UK and Devolved Governments.
The review comes as EV demand grows. According to the Department for Transport, July recorded the strongest new car market since 2019, more than one in four new cars sold are now electric, and EV sales were up 45 per cent on July last year. Over two million electric vehicles are now registered on UK roads.
The Government said its Electric Car Grant, which offers up to £3,750 off the cost of a new EV, has helped over 160,000 drivers buy an EV since it launched last July. It said drivers who make the switch can save up to £1,400 a year on running costs.
Transport Secretary Heidi Alexander said: “The UK EV market is strong – sales are up, British manufacturers and charge point operators are investing billions, alongside our backing of £7.5bn, including our Electric Car Grant that has helped over 160,000 people make the switch.
“It’s right we keep targets under review to ensure they’re practical and back British industry. The end goal hasn’t changed – but we need to take business with us on the journey, and that’s exactly what we’re doing today, by making sure industry has the chance to shape how we get there.”
According to the Government, manufacturers are currently on track to meet their 2025 targets and have built-in flexibilities to help them do so. It said the review is being carried out in the context of global economic conditions including supply chain disruption and tariff and trade uncertainty, and delivers a long-standing commitment to review the Mandate by 2027.
The consultation asks whether the existing annual targets for manufacturers remain appropriate. The Government is investing £7.5 billion in the transition, including £4 billion for DRIVE35 projects and £3.5 billion for van, truck and car grants, the Electric Car Grant and EV charging infrastructure.
Business Secretary Jonathan Reynolds said: “The UK’s automotive sector is vital to our economy and future growth, and we’re determined to keep it that way as we get on with reindustrialising Britain to deliver good growth in every postcode.
“This consultation is about listening to industry, examining the evidence and making sure the Mandate continues supporting investment, innovation and competitiveness, so Britain’s car sector can thrive.”
Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, said: “The automotive industry is fully committed to a zero-emission future, investing billions in new technologies, products and incentives. However, with the ZEV Mandate conceived under vastly different conditions, this welcome review is a timely opportunity to adjust the transition so it works for all. That means a commercially sustainable transition which supports UK competitiveness, investment and jobs whilst delivering greater choice and affordability for motorists – the sooner, the better.”
Others warned against loosening the targets. Gurjeet Grewal, chief executive of Octopus Electric Vehicles, said: “The ZEV mandate is working – giving manufacturers confidence to invest and drivers confidence to switch. Weakening it now would send exactly the wrong signal, just as EVs are becoming some of the best-value cars on the road.
“Carbon Brief estimates weaker targets could cost consumers £3bn a year in expensive petrol by 2030. We should be accelerating the transition, not creating another policy wobble that leaves drivers, businesses and the UK economy paying the price.”
Alongside the review, the Government is investing £600 million to roll out more charge points, building on the 120,000 already available on the public network and over a million in homes and workplaces. It said grants of up to £500 are available to landlords, flat owners and renters towards the cost of installing a home charger.
