The UK's ban on new petrol and diesel cars is leading to job losses in the automotive industry, according to motor industry chiefs. The Society of Motor Manufacturers and Traders (SMMT) has criticised the Zero Emission Vehicle (ZEV) mandate, the policy behind the ban, arguing that it forces manufacturers to produce more electric cars than the market demands, putting British jobs at risk.
Industry Leaders Sound Alarm
SMMT boss Mike Hawes stated that firms are spending billions subsidising electric vehicles because natural demand is insufficient. He highlighted that the EV market share is currently 23.9%, but independent reports suggest natural demand is less than half that. “Next year the target will be 38%. In 2028, 52%. Vans are only at 9.5% when we have to hit 34% in ’27 and 46% in ‘28. No one in the industry thinks it can be done,” Hawes said.
Fines and Financial Pressure
Manufacturers face fines for not producing enough electric cars, adding to the financial strain. Hawes warned that the ZEV mandate is already costing jobs and profitability, creating significant risk to UK investment. “The Climate Change Committee knows better than the industry, but its remit does not extend to industrial consequences. If we all have to buy EVs from abroad to hit net zero, the UK will meet its climate goals, but the domestic industry will be collateral damage,” he added.
Union Concerns and Support for Policy Changes
The Unite Union expressed growing concern that carmakers might stop selling cars altogether to avoid fines under the ZEV mandate, leading to large-scale job losses. The union backed Prime Minister Sir Keir Starmer's plan to water down the rules, potentially requiring only 50% of models to be EVs by 2030 instead of 80%. Unite general secretary Sharon Graham called the development “a huge victory,” noting that UK car workers have been increasingly fearful for their jobs.
Impact on Families and Communities
Industry chiefs stress that the ban puts British jobs at risk, affecting families across the country. The SMMT has urged the government to review the ZEV mandate urgently, not to abandon it but to amend it to reflect market reality.
