Why Are UK Car Dealers Calling for a Lighter ZEV Mandate? – What the New Review Means

Government launches review of the ZEV mandate

The UK Government has officially opened a review of the zero‑emission vehicle (ZEV) mandate, responding to growing pressure from the motor trade.

Dealers reported on 14 August that they want the mandated sales percentages to be “watered down”, with industry experts describing the current trajectory as ‘unsustainable’. In response, ministers have announced a public consultation that will seek input from manufacturers, suppliers, charging‑point operators, retailers and consumers.

Consultation timeline and participants

The consultation closes on 23 October, and the government has said it aims to deliver a quick decision to give the market extra certainty.

Current ZEV targets and why they are causing concern

Under the existing framework, manufacturers must increase the share of zero‑emission sales each year, reaching 80 % by 2030. The broader government plan is for all new cars to be zero‑emission by 2035.

Industry leaders argue that the targets are too aggressive, leading to heavy discounting of battery‑electric vehicles (BEVs) and squeezing dealer profit margins. Despite a steady rise in EV sales, the market share this year remains below the current ZEV mandate benchmark of 33 %.

The mandated share is set to rise to 38 % in 2027, 52 % in 2028, 66 % in 2029 and 80 % in 2030, with no official thresholds defined between 2030 and 2035.

Impact on dealer profitability

Transport Secretary Heidi Alexander highlighted the strength of the UK EV market – sales are up, British manufacturers and charge‑point providers are investing billions, and the government’s £7.5 bn support package, including the Electric Car Grant, has helped more than 160,000 people switch to electric vehicles.

Nevertheless, she acknowledged that “targets must be practical” and that the aim of a zero‑emission future remains unchanged, but the journey must include the business community.

Industry response: SMMT and dealer perspectives

The Society of Motor Manufacturers and Traders (SMMT) has been vocal in urging a review. Chief Executive Mike Hawes welcomed the consultation, stating that the industry remains fully committed to a zero‑emission future and is investing billions in new technologies and incentives.

Hawes noted that the original regulation was conceived under very different conditions – cheaper energy, rapidly falling production costs and more optimistic global demand.

Swansway director Peter Smyth went further, suggesting the pure‑EV requirement could be cut as low as 25 %.

Vertu boss Robert Forrester warned that the mandate is causing “major damage to the UK economy”. He argued that state‑driven targets have forced billions of pounds in discounts on BEVs, leading to fewer jobs, lower investment, and reduced profit pools across the sector.

Forrester welcomed the consultation, saying it is a positive step toward restoring balance between environmental ambition and economic reality.

Potential revision of the 2030 target

According to The Times, the government is reportedly considering lowering the 2030 requirement to 70 %, 60 % or even 50 % of new‑car sales being zero‑emission. Such a reduction would represent a significant departure from the current 80 % mandate.

If adopted, a softer target could alleviate the pressure on dealers, reduce the need for deep discounts and potentially stabilise investment in the UK car‑manufacturing sector.

What the outcome could mean for the market

A revised mandate is likely to reshape dealer strategies, pricing models and inventory decisions. While some industry voices fear a diluted target could slow the overall transition to electric mobility, many dealers argue that a realistic, business‑friendly approach will sustain the market’s growth in the long term.

Stakeholders are encouraged to submit their views before the 23 October deadline, ensuring that the final policy reflects both environmental goals and the commercial realities of the UK automotive sector.