Keir Starmer has been urged to reform the UK's Zero Emissions Vehicle (ZEV) Mandate to protect jobs in the car industry, according to the chief executive of the Society of Motor Manufacturers and Traders (SMMT). Mike Hawes warned that the current rules risk undermining the UK's competitiveness and investment.
ZEV Mandate targets not being met
The ZEV Mandate sets annual targets for the proportion of new car sales that must be electric. In 2026, the target is 33%, but SMMT data shows electric cars account for only 24.8% of the market. Hawes said: “Manufacturers are investing billions developing and bringing the vehicles to market – and spending billions more to sell them, yet the market is still not moving fast enough.”
Jobs at risk without reform
The SMMT has repeatedly called for a review of the mandate, warning that failure to act could lead to job losses. Hawes added: “Reforming the mandate now is essential not just to keep the transition on track but to protect the UK’s competitiveness, attract investment and safeguard jobs.”
Record electric car sales still insufficient
Despite a record 63,950 electric cars registered in June 2026 – a 35% increase year-on-year – the SMMT said even these levels are not enough to meet the mandated target. The gap between sales and targets highlights the challenge facing manufacturers.
Possible watering down of targets
Reports suggest the government may reduce the 2030 target from 80% to 50% electric car sales, which would be the second relaxation of the rules since Labour took office. A government spokesperson said: “Manufacturers and industry are on track to meet their 2025 targets - but we recognise manufacturers are facing challenges. That’s why we’re investing £7.5 billion to help industry and drivers go electric and have introduced flexibilities, allowing manufacturers to meet the Mandate in several ways - not just through ZEV sales.”
