The UK government is preparing to reduce its requirement for the proportion of new car sales that must be electric vehicles (EVs).
Currently, regulations stipulate that 80% of all new cars sold in the UK must be EVs by 2030. However, car manufacturers and trade unions have been pressing the government for years to lower this target, citing concerns over expenses and employment.
In contrast, sustainability organizations argue that any reduction in the target will jeopardize the UK's long-term electrification and climate objectives.
The government will initiate a consultation on what the revised 2030 target should be, which means it could be several months before a decision is reached. However, figures ranging from 50% to 70% are being considered.
The policy regarding EV sales has undergone numerous changes over time.
A prohibition on the sale of new petrol and diesel vehicles by 2030 was initially announced by former prime minister Boris Johnson in 2020, and was later postponed to 2035 by Rishi Sunak during his tenure as prime minister.
Alongside this adjustment, Sunak introduced phased targets for EV sales in the UK, referred to as the Zero Emission Vehicles (ZEV) mandate.
Under the ZEV mandate, the percentage of new car sales that must be EVs increases annually. The target was set at 28% for 2025, 33% for 2026, and so on until it reaches 80% by 2030.
Labour has committed in its manifesto to reinstating the petrol and diesel ban to 2030. Meanwhile, a policy review of the separate ZEV mandate had been anticipated early next year, but the industry has urged for it to occur sooner.
Downing Street is expected to meet with the UK car industry this week to discuss the policy shift, which was first reported by the Sunday Times. Labour has previously accused the Conservative government of "moving goalposts on phase out dates."
Companies that fail to meet the ZEV mandate face a fine of £15,000 per vehicle. They also have the option to purchase credits from competitors who have sold more electric cars than required.
It is understood that there are no plans to alter that aspect of the mandate.
Concerns over range and charging infrastructure
To meet their EV sales quotas, many car manufacturers are offering discounts. This has cost the industry over £10bn in the past two years, according to the Society of Motor Manufacturers and Traders (SMMT).
The SMMT informed 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 drivers are hesitant to purchase EVs due to concerns about their range and the shortage of EV charging points. They say this has also contributed to EVs failing to retain their value when sold second-hand.
However, James Alexander, chief executive of the UK Sustainable Investment and Finance Association (UKSIF), said that weakening the ZEV mandate could slow the deployment of more charging points.
He stated that 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.
According to a poll by researchers More in Common, commissioned by UKSIF, 74% of Britons want their council to maintain or increase support for the rollout of EV charging points.
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, giving them a market share of 23.4%.
That 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—some 7.8 million—were second-hand and are not covered by the ZEV mandate.