ELECTRIVE — 2025-12-18
Automotive Industry
The UK government will start reviewing its zero-emission vehicle sales targets earlier than planned, responding to pressure from carmakers pushing to delay the transition to electric mobility. Nevertheless, ministers say the move will not change the 2035 phase-out of new combustion cars.
The UK government will begin a review of its electric vehicle sales targets next year, bringing the process forward from 2027 after sustained pressure from the automotive industry. The review will focus on the country’s zero-emission vehicle (ZEV) mandate, which requires an increasing share of new car sales to be electric each year until 2035. It is expected to assess how the ZEV mandate aligns with market uptake, manufacturing capacity and investment conditions, while keeping the UK’s electric mobility targets intact.
Industry minister Chris McDonald confirmed the accelerated timeline in an interview with the Financial Times, stating: “The ZEV mandate review starts next year [… ] and of course we’d want to complete that review as quickly as we can.” Previously, the government had said the review would be published in early 2027, with industry representatives understanding that the process itself would also begin that year.
The ZEV mandate is a central pillar of the UK’s electric mobility policy. While the government has maintained its target to end sales of new petrol and diesel cars by 2035, it adjusted elements of the mandate earlier this year, including reducing the level of fines imposed on manufacturers that fail to meet interim targets. That, too, was a response to growing pressure from the industry, as demand for electric vehicles stayed below expectations and manufacturers had to offer steep discounts to meet targets in 2024. As a result, they increasingly opposed the regulation, citing the risk of job losses. Stellantis, for example, had threatened to close its van plant in Luton rather than invest in the planned e-van production there – and it did indeed shut down the factory at the end of March.
The decision to bring forward the review comes amid growing pressure on carmakers as they invest heavily in electrification while facing increased competition from lower-cost electric vehicles, including models from Chinese manufacturers such as BYD. According to industry data, around 23 per cent of new cars sold in the UK this year were battery-electric, below the government’s target of 28 per cent. The mandated share is set to rise steeply to 80 per cent by 2030 and the government recently introduced the Electric Car Grant (ECG), offering subsidies of up to 3,750 pounds for qualifying EVs to boost demand.
Two senior automotive executives described the earlier review as ‘good news’ to the Financial Times but stressed the importance of a swift conclusion to provide planning certainty. Policy clarity has also been highlighted by the government as critical for continued investment.
The move in the UK follows similar developments at EU level, where the European Commission has also brought forward a review of its automotive policies. However, the UK government has emphasised that its long-term direction remains unchanged. Responding to questions about whether EU policy shifts could alter the UK’s trajectory, a Department for Transport spokesperson said: “We remain committed to phasing out all new non-zero emission car and van sales by 2035.” The spokesperson also noted that the UK reinstated the 2030 ban on the sale of new petrol and diesel cars earlier this year, while allowing full and plug-in hybrid models to remain on sale until 2035.