The UK government is poised to slash its target for electric vehicle sales, reducing the required proportion of new cars that must be zero-emission from 80% to as low as 50% by 2030, according to a policy shift first reported by the Sunday Times. Downing Street is expected to meet car industry representatives this week to discuss the change, which comes after years of lobbying by manufacturers and trade unions over costs and jobs.
Under current rules, carmakers must ensure 80% of all new cars sold are electric by 2030, part of a phased mandate known as the Zero Emission Vehicles (ZEV) mandate introduced by former prime minister Rishi Sunak. That mandate set yearly targets: 28% for 2025, 33% for 2026, climbing to 80% in 2030. But now, the government will hold a consultation on a new target, with numbers ranging from 50% to 70% under consideration, a process that could take months.
“UK government to weaken 2030 electric car sales target from 80% to as low as 50% after industry lobbying.”
The move marks another twist in a tumultuous policy history. Boris Johnson first announced a ban on new petrol and diesel car sales by 2030, which Sunak pushed back to 2035. Labour, now in power, pledged in its manifesto to restore the 2030 ban. A policy review on the ZEV mandate had been expected early next year, but industry pressure brought it forward. Labour previously accused the Conservatives of “moving goalposts on phase out dates”.
Companies that fail to meet the mandate face a £12,000 fine per non-compliant car, though they can buy credits from rivals that have exceeded their targets. There are no plans to alter that penalty. But the cost of compliance has already been steep: car makers have spent more than £10bn on discounts over the past two years to shift their EV quota, according to the Society of Motor Manufacturers and Traders (SMMT). The SMMT warned: “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 called any failure to act “an act of self-harm to a sector which is a jewel in the crown of UK manufacturing.” Industry sources say drivers are reluctant to buy EVs because of worries about their range and the lack of charging points, which has also contributed to EVs failing to hold their value when sold second-hand.
Sustainability groups argue any weakening of the target will threaten the UK’s long-term electrification and climate goals. The consultation will determine whether the UK can meet its climate commitments while keeping its car industry competitive.