The Society of Motor Manufacturers and Traders has demanded an immediate review of the UK’s Zero Emission Vehicle Mandate, arguing that current electric car sales targets can’t be achieved under present market conditions.
SMMT officials say economic and political shifts over the past five years have made the planned 2035 phase-out of internal combustion engines unrealistic. The trade body wants the government to accelerate its planned 2027 review of the mandate.
The organization claims EV sales targets were built on assumptions that no longer reflect “global and geopolitical reality” – requiring urgent revision of targets and timelines.
But critics warn that weakening the policy now would damage the UK’s climate goals. New government data shows manufacturers actually hit their 2024 targets through sales and emissions trading mechanisms.
Tough Targets Ahead
The UK maintains some of the world’s most aggressive EV requirements. By year’s end, 33% of new car sales and 24% of van sales must be zero-emission vehicles.
Those figures jump to 38% and 34% respectively by 2027.
EV sales climbed 24% last year, reaching 23.4% of all registrations. But early 2026 progress has slowed – EVs currently hold a 24.2% market share.
The SMMT acknowledged that manufacturer discounts boosted 2025 growth but warned these incentives aren’t sustainable. “Natural market demand will not deliver the doubling in new car market share in two years, never mind the quadrupling of electric van market share, needed to achieve these targets,” the organization stated.
Global events have undermined the mandate’s foundation, according to SMMT officials. They pointed to battery costs running 30% higher than 2021 predictions, increased energy and charging prices, and EVs failing to reach price parity with conventional cars.
Mike Hawes, SMMT chief executive, said the transition pathway was conceived with good intentions but proved over-ambitious.
A landscape which once looked solid has turned out to be quicksand. Recognising the world of 2026 is not the one envisaged five years ago is not a retreat from ambition; it is a necessary step to achieving it.
Industry Pushback
EV advocates argue that policy changes now would harm the country’s emissions targets more than helping manufacturers.
Tanya Sinclair, CEO of Electric Vehicles UK, emphasized that the transition is already underway. Electric vehicles captured nearly a quarter of new car sales last year, with over two million drivers already using EVs.
“If some manufacturers now want to weaken the targets designed to bring these vehicles to market, they are only hurting themselves,” Sinclair said.
She warned that slowing EV rollout contradicts driver preferences and risks reducing choice as demand grows.
“Weakening the ZEV mandate will not stop the transition. It will only leave the companies calling for it further behind.”
Targets Actually Met
Despite SMMT claims about missing targets, new Vehicle Emissions Trading Schemes data suggests the mandate is working.
EVs reached 19.8% market share against a 22% target in 2024. But through CO2 credit trading, lower ICE emissions, and forward borrowing, manufacturers achieved an equivalent 24.1% market share.
The industry not only met requirements but over-complied.
Ben Nelmes, CEO of New AutoMotive, said the data proves industry claims about unattainable targets were false.
At New AutoMotive, our modelling estimated the ‘real’ required ZEV sales level was being easily achieved by carmakers. I am delighted that the Department for Transport’s report validates our methodology and shows that the mandate is working exactly as intended, driving down emissions while providing manufacturers with the flexibility they need to transition.
The government’s 2027 review remains scheduled as planned, though pressure for earlier action continues from manufacturers facing increasingly strict requirements.
