Proposed changes to the UK’s electric vehicle targets have sparked a furious industry clash between those demanding operational flexibility and those warning of a climate policy retreat.

The much-anticipated 10-week, fast-track consultation opened last week and runs until 23 October 2026 to review the Zero Emission Vehicle (ZEV) mandate, proposing to ease annual electric vehicle sales targets between 2027 and 2035.

While the 100% zero-emission target for 2035 remains fixed, the review considers lowering 2030 targets for cars and vans, amid industry concerns over market demand and compliance costs.

The consultation asks for input on whether the existing annual targets “remain appropriate and delivers the long-standing commitment to review the ZEV mandate by 2027”. It also actively seeks views on the effectiveness of existing compliance flexibilities and potential new adjustments or policy options.

The review is being carried out jointly by the UK government, Scottish Government, Welsh Government and Northern Ireland’s Department for Infrastructure.

Auto sector urges sustainable EV transition

The UK’s car industry has said the “welcome review” is a timely opportunity to adjust the transition so it works for all.

“That means a commercially sustainable transition which supports UK competitiveness, investment and jobs whilst delivering greater choice and affordability for motorists – the sooner, the better,” said Mike Hawes, chief executive of the Society of Motor Manufacturers & Traders (SMMT).

And the National Franchised Dealers Association (NFDA) said it was a “timely opportunity to consider how the transition can work effectively for the whole automotive sector”.

Sue Robinson, chief executive, continued: “The industry has made significant progress in increasing the availability and choice of electric vehicles, but the market must remain commercially sustainable.

“The results from the consultation need to ensure consumers have the choice and affordability needed to make the transition. Franchised retailers are playing a vital role in this process and have a clear understanding of the opportunities and challenges facing customers.”

Opportunity to ensure policy works for fleets as well as OEMs

Many in the fleet, rental and leasing sectors have greeted the review.

The British Vehicle Rental & Leasing Association (BVRLA) said it was a vital opportunity to take stock of the UK’s transition to zero-emission vehicles.

Toby Poston, chief executive of the industry body, said: “BVRLA members have already invested more than £36bn in 750,000 electric vehicles and have been the driving force behind the UK’s shift to electric mobility. We will engage fully with this consultation, representing members from across the sector and ensuring government understands where policy is working, where greater support is needed, and how we can keep the transition moving with confidence.”

Europcar Mobility Group UK also welcomed the Government’s decision to bring forward the review of the Zero Emission Vehicle (ZEV) mandate.

Gavin Morgan, commercial director, commented: “As one of the UK’s largest fleet operators, we’ve seen first-hand both the opportunities and the practical challenges that come with transitioning to electric vehicles at scale. Fleets are central to the UK’s decarbonisation ambitions, and getting this policy right matters enormously – not just for mobility providers like us, but for the businesses and private motorists who rely on the rental sector.”

Europcar’s own data shows that whilst there is a clear commitment to transition to electric motoring, many business drivers still experience a number of barriers. The most recent EV Barometer found that cost is a barrier for 40% of respondents; charging infrastructure concerns also rose in Q2 to stand at 31.6%.

Morgan continued: “The review must therefore consider the whole EV ecosystem. Vehicle targets need to be supported by faster deployment of charging-infrastructure, measures that improve affordability and stronger consumer confidence in both new and used electric vehicles. A practical, coordinated approach will enable fleet operators to invest with greater confidence while ensuring that the transition remains accessible and workable for customers.”

A joint response from Enterprise Mobility, Zenith, United Rental Group and Vertu motors also calls for the Government to “adopt new plans for a more realistic trajectory”.

The joint statement says: “It has long been clear that our transition to EVs will not be achieved through regulation and targets alone, and that it requires a practical partnership between government, industry and consumers to create the conditions that will make it possible for people to switch.”

The four companies say current policy asks motorists to make the switch before charging infrastructure, affordability and consumer confidence are sufficiently developed, while “manufacturers and businesses across the automotive supply chain must contend with increasing targets that do not reflect levels of consumer demand”.

They add: “The lesson is clear: infrastructure, technology and affordability must all be present if the shift to electric vehicles is to succeed. The Government should therefore set out new plans for a more realistic trajectory, greater flexibility for manufacturers and stronger measures to stimulate genuine consumer demand across both new and used vehicles – building a pathway the market can realistically support.”

Not all leasing firms have come out in support of softer targets though.

Thom Groot, CEO of EV salary sacrifice specialist The Electric Car Scheme, said: “Diluting the ZEV mandate would be a catastrophic own goal. Consumer demand for EVs is growing, proof that the appetite is absolutely there. Through salary sacrifice alone, we’ve seen demand for new EVs double in the past year.

“Consumers and manufacturers alike need consistency to plan and invest. Watering down these targets would only benefit those who haven’t taken them seriously from the start. I would like to see the Government channel the momentum already gained into focusing on innovations and incentives that make EVs more accessible.”

And Gurjeet Grewal, CEO of Octopus Electric Vehicles, said: “The ZEV mandate is working – giving manufacturers confidence to invest and drivers confidence to switch. Weakening it now would send exactly the wrong signal, just as EVs are becoming some of the best-value cars on the road.

“Carbon Brief estimates weaker targets could cost consumers £3bn a year in expensive petrol by 2030. We should be accelerating the transition, not creating another policy wobble that leaves drivers, businesses and the UK economy paying the price.”

Action needed to tackle the van problem

Many stakeholders have pointed out that commercial van operators face the steepest mountain to climb under the current rules, making the proposed changes a critical lifeline.

Simon Staton, client management director at Venson Automotive Solutions, said: “It’s clear that the pathway needs to reflect the operational and financial realities facing businesses, particularly commercial vehicle fleets.

“Electrifying a working fleet, particularly for commercial vehicles, isn’t simply a question of replacing one vehicle with another. Vehicle suitability, payload and range requirements, access to charging, acquisition costs and the need to keep vehicles operational all influence whether an electric van can currently do the job required of it. It is therefore encouraging that the Government is looking specifically at the trajectory for vans as part of this review.”

But he warned that changing the sales trajectory alone won’t remove the barriers to fleet electrification.

“Government needs to look at the whole ecosystem, including charging infrastructure that works for commercial vehicles, vehicle availability and affordability, as well as measures that support a healthy second-hand EV market.

“The 2035 destination hasn’t changed, so fleets still need to plan for electrification. What businesses need from this review is greater certainty and a realistic, commercially sustainable pathway that enables them to make that transition without compromising operational efficiency or service delivery.”

Logistics UK said it welcomed the opportunity to shape how the transition is delivered for van fleets.

Ben Fletcher, chief executive of the business group, stated: “The commercial vehicle market works differently from the car market, and van uptake continues to run behind trajectory, largely because of practical barriers around grid connections, public charging that suits larger vehicles and costs.

“Getting those enablers right matters as much as the targets themselves.

“We’ll be consulting members over the coming weeks and responding in full.”

Climate experts warn of economic and planetary risks

Environmental groups have strongly condemned the proposals, warning that slowing down electric vehicle sales will worsen the climate crisis and increase living costs for UK families. Climate experts argue that weakening the mandate threatens the UK’s net-zero transition while locking drivers into high fuel costs.

Colin Walker, head of transport at the Energy & Climate Intelligence Unit (ECIU), said: “Proposing to water down the UK’s biggest climate policy the day after temperatures hit 38C, and a summer of heat and drought that risks the UK having its worst ever harvest, may seem strange to the increasing number of people concerned by images of homes on fire, and the security and affordability of the food we eat.

“At a time when the PM is on a cost-of-living tour, with pump prices up due to another war-driven oil and gas crisis, incentivising the industry to slow the sale of EVs will lead to higher costs of living for families across the UK, given electric cars can save hundreds, even thousands, of pounds a year in running costs, and are now no more expensive to buy then a petrol car.”

Tanya Sinclair, CEO of campaign group Electric Vehicles UK, said there was a “remarkable cognitive dissonance” in a government who is asking whether we should extend the availability of polluting vehicles amid our hottest summer on record.

“It hasn’t rained for weeks, our ground is parched, air quality is poor. Electric vehicles are the most powerful public health and climate change intervention we have to mitigate these changes, as much as we’re able.

“And to top it off, they are cheaper to buy and drive, and fantastically equipped with the latest tech. It’s all upside, so why isn’t this government doing everything in its power to enable their uptake?”

EV charging firms warn of impact on UK investments if quotas are weakened

While car manufacturers and leasing/rental firms lobby for weaker targets, the charging sector warns that moving the goalposts will jeopardise private capital and halt the rollout of the public charging network.

Many EV charging companies firmly oppose softening the ZEV mandate, demanding that the Government maintain the existing targets to protect hundreds of millions of pounds in private infrastructure investments.

Guy Bartlett, CEO of Believ, said: “This consultation should be a chance to lock in the progress towards the EV transition that drivers want and need, not press pause on it. It is therefore encouraging that ‘no change’ remains on the table.

“Recent data shows that only 37% of people want the EV transition slowed, with 53% wanting it kept on track or accelerated. Among Labour voters that figure rises to 68%. People want the benefits of cleaner, cheaper driving, not another delay.

“The switch to electric is also one of the UK’s biggest economic and environmental opportunities. Energy UK says EVs are the single biggest driver of emissions reductions in the UK’s Net Zero Pathway, cutting more than seven million tonnes of CO₂ from UK emissions every year. The ZEV mandate is helping underpin billions of pounds of investment in charging infrastructure, grid upgrades, innovation and supply chains, supporting jobs and growth across the country.

“We are encouraged by the open, evidence-led consultation, but remain steadfast that the Government must come out of it with the mandate protected, not weakened.”

And David Martell, CEO of charger firm Andersen EV, has warned that weakening the targets would confuse consumers, dampen EV demand and undermine private sector investment in charging infrastructure and technology.

Martell said: “Growth in the EV market has been achieved through certainty and stability. The Government must not rock the boat with a U-turn that creates uncertainty about its commitment to low-carbon motoring.”

The ZEV Mandate review consultation, launched by the UK and devolved governments, will run until 23 October 2026.