The Government is preparing to review its targets for electric vehicle (EV) sales, amid growing pressure from car manufacturers and trade unions who argue that current requirements are placing significant strain on the industry.
Under existing rules, 80 per cent of all new cars sold in the UK must be fully electric by 2030. However, ministers are now expected to consult on whether that target should be lowered, with figures between 50 and 70 per cent reportedly under consideration.
The move follows longstanding concerns from parts of the automotive sector about the costs of transitioning to electric vehicles and the potential impact on jobs and investment.
The UK’s approach to vehicle electrification has evolved considerably in recent years. In 2020, the Government announced plans to end the sale of new petrol and diesel cars by 2030. That deadline was later pushed back to 2035 before Labour pledged to restore the original 2030 phase-out date after entering government.
Alongside the planned ban, manufacturers are required to meet annual electric vehicle sales targets under the Zero Emission Vehicle (ZEV) Mandate. The scheme sets increasing quotas each year, rising from 28 per cent of new car sales in 2025 to 80 per cent by 2030.
Manufacturers that fail to meet the targets can face financial penalties of up to £15,000 per vehicle, although they can offset shortfalls by purchasing credits from companies that exceed their own targets.
Downing Street is expected to hold discussions with representatives from the UK automotive industry as part of the policy review.
Industry leaders have argued that demand for electric vehicles has not grown quickly enough to match the mandated sales targets. Many manufacturers have relied on substantial discounts to encourage customers to switch to electric models, a strategy that industry figures say has cost billions of pounds in recent years.
Concerns have also been raised about consumer confidence, with issues such as driving range, charging infrastructure and second-hand resale values continuing to influence purchasing decisions.
Trade unions have echoed concerns about the potential impact on Britain’s automotive sector if current targets remain unchanged. They warn that manufacturers could face increasing financial pressure at a time when global competition is intensifying.
However, environmental and investment groups have cautioned against weakening the targets. They argue that clear long-term commitments are essential for encouraging private investment in charging networks and supporting the wider transition to cleaner transport.
Supporters of the existing mandate say that certainty over future EV demand has helped attract investment into charging infrastructure across the country and that reducing the targets could create uncertainty for investors.
Research commissioned by the UK Sustainable Investment and Finance Association found that 74 per cent of people support maintaining or increasing local investment in electric vehicle charging facilities.
The debate comes as electric vehicle sales continue to grow. More than 2 million new cars were registered in the UK during 2025, marking a third consecutive year of growth and the strongest performance since the pandemic.
Electric vehicles accounted for approximately 473,000 of those registrations, representing a market share of 23.4 per cent. While that was an increase on the previous year, it remained below the 28 per cent target set under the ZEV Mandate.
Despite rising sales of new electric vehicles, the second-hand market remains dominant. Of the 9.8 million cars sold in the UK last year, around 7.8 million were used vehicles, which are not covered by the ZEV sales requirements.
The Government’s consultation is expected to determine whether the current targets remain achievable or whether adjustments will be needed as the transition to electric motoring continues.
