The Government has launched a consultation on the UK’s Zero Emission Vehicle (ZEV) Mandate, asking vehicle manufacturers, suppliers, charge point operators, dealers, consumers and communities for their views on the pathway to ending sales of new petrol and diesel cars by 2030 and ensuring all new cars and vans are zero emission by 2035.
As we reported on Tuesday 11th August, the consultation, launched on Friday 14 August, follows the Government’s commitment to keep the ZEV Mandate under review and comes as demand for electric vehicles (EVs) continues to strengthen.
The review comes against a backdrop of a rapidly changing UK automotive market. July recorded the strongest new car market since 2019, with more than one in four new cars sold being electric. EV sales were up 45% compared with July 2025, while more than two million electric vehicles are now registered on UK roads.
The Government says its support for consumers is also helping accelerate the transition. Its Electric Car Grant, offering up to £3,750 towards the cost of a new EV, has helped more than 160,000 drivers make the switch since its launch last year.
According to the Government, drivers moving to an EV can save up to £1,400 a year in running costs, while the ZEV Mandate is helping increase the availability of electric models and drive more competitive pricing as manufacturers introduce an expanding range of vehicles.
Government insists 2030 and 2035 ambitions remain
The consultation does not abandon the Government’s existing zero-emission ambitions. New petrol and diesel cars are still scheduled to be phased out by 2030, while all new cars and vans are expected to be fully zero emission by 2035.
Instead, ministers are examining whether the existing annual ZEV Mandate targets remain appropriate in light of changing economic conditions, global markets and the practical challenges facing manufacturers and consumers.
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.”
The Government says manufacturers are currently on track to meet their 2025 targets and have built-in flexibilities available to help them achieve their obligations. However, it argues that supply chain disruption, tariff and trade uncertainty and wider global economic pressures mean the Mandate needs to remain responsive to real-world conditions.
Business, Innovation, Science and Trade 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.”
£7.5bn Government investment
The Government says it is investing £7.5bn to grow the EV market, increase sales, support manufacturing and expand the UK’s charging network.
The funding includes £4bn for DRIVE35 projects, alongside £3.5bn for van, truck and car grants, the Electric Car Grant and EV charging infrastructure.
A further £600m is being invested in charging infrastructure, building on the 120,000 public charge points already available across the UK and more than one million chargers located in homes and workplaces.
The Government says a further £400m is already being used to deliver more than 100,000 additional public chargers.
For households, drivers charging at home can save around £1,400 a year in running costs, while grants of up to £500 can help landlords, flat owners and renters reduce the cost of installing a home charger.
SMMT welcomes opportunity to reshape transition
The Society of Motor Manufacturers and Traders (SMMT) has welcomed the review, arguing that the ZEV Mandate was created in substantially different market conditions.
Mike Hawes, SMMT Chief Executive, 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.”
The SMMT position highlights one of the central questions facing the consultation: how the Government can maintain pressure to accelerate electrification while ensuring manufacturers can operate competitively in a volatile global market.
Fleet sector calls for a practical approach
The consultation is particularly significant for fleet operators, with the commercial vehicle sector facing different electrification challenges from the passenger car market.
Jon Lawes, Managing Director at Novuna Vehicle Solutions, said: “We welcome the Government’s decision to review the ZEV Mandate, which provides an important opportunity to ensure the UK’s transition to electric vehicles is both ambitious and achievable.
“The fleet sector has a key role to play in driving the transition, but the pace of change needs to reflect real-world demand, affordability and the availability of charging infrastructure. A pragmatic and flexible approach will give businesses and consumers greater confidence to make the switch, while supporting the UK’s longer-term decarbonisation ambitions.”
Simon Staton, Client Management Director at Venson Automotive Solutions, said: “We’ve consistently called for a practical approach to the UK’s transition to zero-emission vehicles, so the review is welcome. It’s clear that the pathway needs to reflect the operational and financial realities facing businesses, particularly commercial vehicle fleets.
“Electrifying a working fleet, particularly for commercial vehicles, isn’t simply a question of replacing one vehicle with another. Vehicle suitability, payload and range requirements, access to charging, acquisition costs and the need to keep vehicles operational all influence whether an electric van can currently do the job required of it. It is therefore encouraging that the Government is looking specifically at the trajectory for vans as part of this review.
“However, changing the sales trajectory alone won’t remove the barriers to fleet electrification. Government needs to look at the whole ecosystem, including charging infrastructure that works for commercial vehicles, vehicle availability and affordability, as well as measures that support a healthy second-hand EV market.
“The 2035 destination hasn’t changed, so fleets still need to plan for electrification. What businesses need from this review is greater certainty and a realistic, commercially sustainable pathway that enables them to make that transition without compromising operational efficiency or service delivery.”
These comments underline an important distinction in the ZEV Mandate debate. For many commercial operators, electrification involves considerably more than purchasing a replacement vehicle. Payload, operating range, charging availability, acquisition costs and vehicle downtime can all determine whether an electric van is suitable for a particular operation.
EV industry warns against weakening targets
Not everyone supports the prospect of changing the ZEV Mandate trajectory. Thom Groot, CEO of The Electric Car Scheme, warned against any dilution of the targets.
He said: “Diluting the ZEV mandate would be a catastrophic own goal. Consumer demand for EVs is growing, proof that the appetite is absolutely there. Through salary sacrifice alone, we’ve seen demand for new EVs double in the past year.
“Consumers and manufacturers alike need consistency to plan and invest. Watering down these targets would only benefit those who haven’t taken them seriously from the start. I would like the Government to channel the momentum already gained into focusing on innovations and incentives that make EVs more accessible. We will make this clear in the review.”
Gurjeet Grewal, CEO of Octopus Electric Vehicles, also argued that the Mandate is delivering results.
“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.”
Rental and charging industries raise investment concerns
The British Vehicle Rental and Leasing Association (BVRLA) says its members have already made significant investments in electrification.
Toby Poston, Chief Executive of the BVRLA, said: “Today’s consultation on the ZEV Mandate provides a vital opportunity to take stock of the UK’s transition to zero emission vehicles. BVRLA members have already invested more than £36 billion in 750,000 electric vehicles and have been the driving force behind the UK’s shift to electric mobility. We will engage fully with this consultation, representing members from across the sector and ensuring Government understands where policy is working, where greater support is needed, and how we can keep the transition moving with confidence.”
Charging operators have similarly warned that policy uncertainty could affect investment decisions.
Delvin Lane, CEO of InstaVolt, said: “Ultra-rapid charging investment doesn’t happen on the back of uncertainty. We’ve invested hundreds of millions of pounds into the UK’s charging network because government policy gave us a clear runway to plan against. Softening the mandate at this stage risks spooking exactly the private capital that’s been building the infrastructure this transition depends on.
“Meanwhile, hundreds of thousands of drivers are choosing to go electric. The numbers back this up: BEVs made up 27% of new car registrations in July, up 49% year-on-year, and staying above the ZEV Mandate trajectory for a second month running. OEMs need to recognise that this demand is real and seize it, or risk watching competitors take the opportunity they’re hesitating over.”
What happens next?
The ZEV Mandate consultation gives the Government an opportunity to assess whether the current pathway remains achievable while balancing the interests of manufacturers, fleets, consumers, charging operators and the wider economy.
The fundamental 2030 and 2035 ambitions remain in place, but the review could ultimately lead to changes in how manufacturers are expected to reach them. For fleet operators, the outcome will be particularly important as they assess vehicle replacement cycles, charging requirements and the future availability of suitable electric vans.
With EV sales continuing to grow, the Government faces a difficult balancing act. It must provide sufficient certainty to encourage investment while ensuring the transition reflects affordability, vehicle availability, infrastructure and the operational requirements of businesses.
The consultation, launched by the UK and Devolved Governments, will run until 23 October.
