UK auto leaders warn ZEV Mandate misses target

By Jennifer Collins 01/07/2026 2 min read 6 views

The UK automotive industry has raised alarms over the ZEV Mandate, with all surveyed leaders saying they are falling short of legally set electric vehicle targets. The Society of Motor Manufacturers and Traders (SMMT) reported that 100% of auto executives surveyed in the latest State of the Automotive Nation report believe they are not on track to meet goals. Three-quarters of car company bosses added they are “significantly behind” schedule, representing firms responsible for £94 billion in turnover, 113,000 employees, and more than 96% of UK vehicle production – effectively encompassing the vast majority of the British automotive sector. The scale of the industry’s involvement shows the urgency of the challenges highlighted by the SMMT.

Under the ZEV Mandate, manufacturers must sell increasing numbers of electric cars each year. The target for 2026 is 33%, rising to 38% in 2027, 52% by 2028, and 80% by 2030. Firms that miss their quotas face fines of £12,000 per non-electric car sold. However, current EV sales hover at just under 24%, with SMMT chief executive Mike Hawes stating that natural demand is “less than half” of that figure. The mandate includes flexibilities that adjust the headline targets for individual brands, but these adjustments are insufficient to bridge the gap between policy expectations and market realities, according to the SMMT.

Hawes argued the mandate’s targets are unrealistic. “The underlying level of demand is simply not sufficient,” he said, adding no one in the industry believes the 80% target for 2030 is achievable. The SMMT emphasized that the automotive sector is already allocating significant resources to meet the ZEV Mandate, yet the financial burden on firms continues to grow as consumer adoption remains sluggish.

The SMMT is pushing for an urgent review of the ZEV Mandate, suggesting the 80% target may need adjustment. Hawes stressed the need for reform, not abandonment. “Reforming the ZEV Mandate is not about weakening ambition,” he said. “It’s about making the transition achievable.” The industry’s call for recalibration reflects broader concerns about aligning policy with the practical constraints of production, investment, and consumer behavior.

Hawes warned that time is running out. “We cannot wait for lengthy discussions,” he said, emphasizing the need for immediate action. The industry’s concerns highlight a growing gap between policy goals and market realities, with leaders urging a recalibration to align with actual demand and investment capacity. The urgency of the situation is compounded by the fact that the automotive sector must balance its commitments to decarbonization with the need to remain economically viable in the face of shifting consumer preferences and global competition.