The government has launched a major review of the rules designed to push car makers towards electric vehicles, with the possibility that EV sales targets could be cut significantly before the end of the decade.

The Zero Emission Vehicle mandate, better known as the ZEV mandate, currently requires manufacturers to work towards 80 per cent of their new car sales being zero emission by 2030, rising to 100 per cent by 2035. But a new consultation launched by the government could see that 2030 figure cut to 70, 60 or even 50 per cent.

There’s another option on the table, too: keeping the 80 per cent target but giving car makers more flexibility over how they meet it, potentially extending some of the existing arrangements until 2034.

What isn’t changing is the final destination. The government says its commitment to phase out sales of new cars powered solely by petrol and diesel in 2030 remains, while all new cars and vans will still have to be zero emission by 2035.

The review is likely to reignite an argument that has been rumbling around the motor industry for some time. Car makers have been pushing the government for more flexibility as they spend billions developing electric cars while also spending heavily trying to persuade enough buyers to make the switch. On the other side are EV and charging businesses that say the mandate has done exactly what it was intended to do by giving companies a clear timetable to work towards.

For 2026, the headline ZEV mandate target for cars is 33 per cent, with vans at 24 per cent. However, the system includes various ways for manufacturers to meet their obligations without simply ensuring that precisely one in three cars they sell this year is electric. The targets are currently due to rise steadily until 80 per cent of new cars and 70 per cent of new vans are zero emission in 2030.

The government says the review is being carried out against a background of difficult global trading conditions, including supply chain problems and uncertainty over tariffs and international trade. It also wants to look at whether some of the flexibility currently available to manufacturers should continue beyond its planned expiry in 2029.

Transport Secretary Heidi Alexander said: “The end goal hasn't changed – but we need to take business with us on the journey.”

The Society of Motor Manufacturers and Traders has welcomed the review. Its chief executive Mike Hawes said the industry remained committed to a zero-emission future, but argued that the mandate had been devised in very different market conditions. The trade body wants a system that it says can support jobs and investment while continuing to give buyers more choice at affordable prices.

More than one-in-four new cars sold in the UK is now electric, according to the government, while there are now more than two million EVs registered on UK roads. The government is also pointing to its Electric Car Grant as evidence that it is still trying to encourage drivers into EVs. The scheme, introduced last year, offers discounts of up to £3,750 on eligible new electric cars, with the government saying more than 160,000 drivers have already benefited.

It has committed £7.5 billion to supporting the wider switch to electric vehicles, covering manufacturing, grants and charging infrastructure, including £600 million towards the roll-out of more charge points. The government says there are now more than 120,000 chargers available on the public network, alongside more than a million at homes and workplaces.

However, some of the businesses investing in that charging infrastructure are concerned that relaxing the mandate could make further investment less attractive.

Robin Heap, CEO of charging company Zest, said: “The ZEV Mandate has provided the automotive industry with something it desperately needs: a clear direction of travel. While there is still work to do to make the transition to electric vehicles as seamless and affordable as possible, changing the rules now risks undermining confidence at precisely the moment the market is gathering momentum.

“EV adoption is no longer a distant ambition, it is becoming a mainstream consumer choice, with manufacturers, retailers, infrastructure providers and consumers all adapting to a rapidly changing market. The priority now should be removing the barriers that remain, supporting demand and giving businesses the certainty they need to continue investing.

“Government should be using this consultation to strengthen the conditions for the transition, not introduce another layer of uncertainty. The UK has an opportunity to build a genuinely competitive electric vehicle market and supply chain and that requires consistency, collaboration and confidence from policymakers.”

Octopus Electric Vehicles CEO Gurjeet Grewal also wants the current rules to remain, saying: “The ZEV mandate is working – giving manufacturers confidence to invest and drivers confidence to switch. Weakening it now would send exactly the wrong signal, just as EVs are becoming some of the best-value cars on the road.

“Carbon Brief estimates weaker targets could cost consumers £3bn a year in expensive petrol by 2030. We should be accelerating the transition, not creating another policy wobble that leaves drivers, businesses and the UK economy paying the price.”

Instavolt CEO Delvin Lane believes uncertainty over future policy could have an impact on the companies funding the charging network.

“Ultra-rapid charging investment doesn’t happen on the back of uncertainty. We’ve invested hundreds of millions of pounds into the UK’s charging network because government policy gave us a clear runway to plan against. Softening the mandate at this stage risks spooking exactly the private capital that’s been building the infrastructure this transition depends on.

“Meanwhile, hundreds of thousands of drivers are choosing to go electric. The numbers back this up: BEVs made up 27 per cent of new car registrations in July, up 49 per cent year-on-year, and staying above the ZEV Mandate trajectory for a second month running. OEMs need to recognise that this demand is real and seize it, or risk watching competitors take the opportunity they’re hesitating over.”

The consultation isn’t just looking at the headline numbers. The government is also asking what more could be done to encourage people to buy electric cars and how plug-in hybrids should be treated under future rules, including whether drivers could be encouraged to use them in electric mode more often.

Car makers, suppliers, dealers, charging companies and consumers are all being invited to have their say, with the consultation running until 23 October. What happens after that could reshape the electric-car sales targets manufacturers have been planning around for the rest of the decade.