UK Government Plans to Soften Electric Vehicle Sales Target
The UK government is preparing to reduce its target for the proportion of new cars sold that must be electric vehicles (EVs).
Currently, regulations require that 80% of all new cars sold in the UK be EVs by 2030. However, car manufacturers and trade unions have lobbied the government for several years to lower this target due to concerns about costs and employment.
At the same time, sustainability organizations warn that weakening the target could jeopardize the UK's long-term electrification and climate objectives.
The government will launch a consultation to determine the revised 2030 target, which means a final decision may take several months. Proposed targets under consideration range from 50% to 70%.
Evolution of EV Sales Policy
The policy on EV sales has undergone significant changes over recent years.
The initial ban on the sale of new petrol and diesel vehicles by 2030 was announced by former Prime Minister Boris Johnson in 2020. This deadline was later extended to 2035 by Rishi Sunak during his premiership.
Alongside this extension, Sunak introduced phased targets for EV sales in the UK, known as the Zero Emission Vehicles (ZEV) mandate.
The ZEV mandate requires an increasing percentage of new car sales to be EVs each year. The targets are 28% for 2025, 33% for 2026, continuing upward until reaching 80% by 2030.
The Labour Party has pledged in its manifesto to reinstate the petrol and diesel ban to 2030. Meanwhile, a policy review of the ZEV mandate was expected early next year, but industry stakeholders have urged for an earlier review.
Downing Street is anticipated to meet with representatives from the UK car industry this week to discuss the policy shift. Labour has previously accused the Conservative government of "moving goalposts on phase out dates."
Companies that fail to meet the ZEV mandate face fines of £15,000 per vehicle. They can also purchase credits from competitors who have exceeded their EV sales targets.
There are no current plans to alter this aspect of the mandate.
Range Anxiety and Charging Infrastructure
To meet their EV sales quotas, many manufacturers offer discounts, which have cost the industry over £10 billion in the past two years, according to the Society of Motor Manufacturers and Traders (SMMT).
The SMMT told the BBC that "unless there is urgent relief of the mandate, which is still running well ahead of demand and about to ramp up, then the cost will be in jobs, investments and the viability of some businesses."
Unite union general secretary Sharon Graham stated that failing to act on the mandate would be "an act of self-harm to a sector which is a jewel in the crown of UK manufacturing."
Industry sources indicate that consumers are hesitant to purchase EVs due to concerns about driving range and the scarcity of EV charging points. This hesitation has also contributed to EVs depreciating more rapidly in the second-hand market.
However, James Alexander, chief executive of the UK Sustainable Investment and Finance Association (UKSIF), warned that diluting the ZEV mandate could impede the expansion of charging infrastructure.
He said the mandate is "vital for driving investment into our charging infrastructure" as it has "given the market confidence to commit vast sums of private capital to building out these networks across the country."
"Any attempt to water down these targets could send warning signals to these investors about the government's long-term commitment to electrifying our transport network," he added.
A poll conducted by researchers More in Common, commissioned by UKSIF, found that 74% of Britons want their local councils to maintain or increase support for the rollout of EV charging points.
Recent EV Market Statistics
In total, 2,020,373 new cars were registered in 2025, marking the third consecutive year of growth and the highest total since the pandemic.
Electric cars accounted for 473,340 new registrations last year, representing a market share of 23.4%.
This was a significant increase compared to 2024, but still below the 2025 ZEV mandate target of 28%.
Of the 9.8 million cars sold in the UK last year, the vast majority—approximately 7.8 million—were second-hand vehicles, which are not subject to the ZEV mandate.
