Government set to review UK electric car sales targets from 2027
The UK Government is preparing to review the targets forcing car makers to increase electric vehicle sales, amid concerns that the current timetable could put pressure on manufacturers and jobs.
The six-week review is expected to examine the Zero Emission Vehicle (ZEV) mandate from 2027 onwards, when the required share of new cars sold as electric rises from 38% next year to 52% in 2028, 66% in 2029 and 80% in 2030.
Under the existing plan, all new cars and vans are due to be zero-emission by 2035.
The review will bring together manufacturers, industry representatives and other stakeholders. Ministers could ultimately leave the targets unchanged, make limited adjustments or reduce the required proportion of electric sales. The precise scope of the review, including whether the 2035 deadline itself could change, has yet to be confirmed.
The pressure comes as electric car sales continue to grow but remain below the level manufacturers need to meet the mandate. The Society of Motor Manufacturers and Traders (SMMT) recently reported a 44.5% annual increase in EV sales in July, but electric cars still account for only around one in four sales so far this year, compared with the one-in-three level needed under the current trajectory.
The SMMT has called for urgent changes. Chief executive Mike Hawes said manufacturers were spending heavily on discounts to encourage buyers into EVs, arguing that the mandate can increase supply but cannot create consumer demand.
The Government is also concerned about the wider consequences for companies with long-standing UK factories, investment and workforces. Established manufacturers face the cost of moving production towards electric models while newer Chinese brands entering the British market have not had to make the same transition from an established UK manufacturing base.
The ZEV mandate has already been adjusted once. Previous changes reduced the fine for non-compliant sales from £15,000 to £12,000 and gave manufacturers greater flexibility to balance EV sales between different years.
Any changes could therefore affect more than showroom prices. The outcome may influence future investment, manufacturing jobs and the UK’s ability to build its own electric vehicles.
The review is expected to provide a clearer indication of whether the Government believes the current EV timetable can realistically be maintained.
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