EV & CLIMATE
UK to cut 2030 EV sales targets following carmaker pushback
Ministers prepare to soften the Zero Emission Vehicle mandate as auto manufacturers warn billions spent on buyer discounts endanger future factory investment.
What happened in London
The UK government is expected to lower its target requiring 80% of new cars sold to be electric by 2030, bowing to pressure from automotive manufacturers who warn the rigid mandate threatens manufacturing investment.
Downing Street insisted no final decision has been taken, but government sources said ministers will approach the policy revision in a "pragmatic and balanced" manner. Key cabinet discussions are being chaired by Cabinet Office minister Louise Haigh after Prime Minister Andy Burnham recused himself over his wife's commercial links to an electric vehicle company.
The expected policy rollback follows a formal review of electric vehicle sales targets launched in August. Carmakers have spent billions of pounds in buyer discounts to meet annual sales quotas set under the Zero Emission Vehicles mandate, prompting industry leaders to demand urgent regulatory relief.
What the ZEV mandate requires
The ZEV mandate, introduced by former Prime Minister Rishi Sunak, sets legally binding annual quotas for zero-emission vehicles sold by car manufacturers in the UK market.
| Year | Target EV share | Mandate status |
|---|---|---|
| 2025 | 28% | ZEV Mandate |
| 2026 | 33% | ZEV Mandate |
| 2030 | 80% | Under review |
| 2030 | Petrol engine phase-out | Original target |
| 2035 | 100% zero-emission sales | Statutory goal |
Under the current rules, electric vehicle share targets scale up each year towards the 80% threshold in 2030, culminating in a complete 100% zero-emission requirement for all new cars and vans by 2035.
The overall timeline for phasing out pure petrol and diesel engines was originally announced in 2020 by then-Prime Minister Boris Johnson, before Sunak delayed aspects of the transition schedule to 2035.
Why carmakers pushed back
Automotive manufacturers have argued that ramping up EV sales quotas during a period of lukewarm retail demand forces ruinous discounting across showroom floors.
Mike Hawes, head of the Society of Motor Manufacturers and Traders (SMMT), welcomed the government's review, noting that carmakers have absorbed a "heavy cost" to artificially drive consumer adoption. Hawes warned that keeping the strict 2030 targets intact would occur "without putting at risk any future investment" in vehicle production and infrastructure.
Political opposition has also intensified. Conservative Party leader Kemi Badenoch pledged that her party would scrap the petrol car ban entirely, describing the regulation as a "well-meaning, but ultimately destructive piece of legislation."
Backlash from energy and climate groups
Environmental campaigns and clean energy industry bodies have strongly rejected any watering down of the ZEV mandate, warning that changing course will destabilise long-term capital deployment.
Energy UK, the trade association for the energy sector, stated that reducing EV quotas risks eroding "the investment certainty needed to deliver the infrastructure, innovation and services required for the transition to zero-emission transport."
Green Party leader Zack Polanski accused the administration of "building up a shocking record of backsliding and bad decisions on climate issues," pointing to the recent approval of the Jackdaw gas field in the North Sea as further evidence of shifting priorities.
Critics also highlight the timing of the announcement, which comes as ministers prepare for the UN COP31 climate summit in Turkey.
How ministers frame the decision
Government representatives have pushed back against claims that climate commitments are being abandoned in favour of short-term economic relief.
Health Minister Karin Smyth defended the administration's record, asserting that the country is doing "great work in terms of our transition and looking at renewables – that's a key part of growth." Smyth added that the prime minister would have "a good story to tell" when addressing international leaders at COP31.
A government spokesperson reaffirmed that official policy remains "committed to the phase out of all new cars relying solely on petrol and diesel engines by 2030, and to 100% of new car and van sales being zero emission by 2035."
What this means for global EV adoption
The UK's policy shift reflects a growing international trend where governments are reassessing aggressive EV mandates amid market resistance. In the European Union, similar pressure led policymakers to abandon plans to ban new petrol and diesel car sales by 2035, driven largely by resistance from nations with large automotive manufacturing sectors such as Germany.
For global supply chains and emerging markets, including India's expanding EV ecosystem, weakening regulatory mandates in Europe and the UK signals potential volatility in international battery and component demand, while slowing down global scale economies needed to bring unit costs to parity.