Car industry calls for urgent review of EV sales targets

The car industry in the UK is asking the Government to review its EV sales targets, warning the country’s net zero and economic growth ambitions could be damaged.

New analysis released by the Society of Motor Manufacturers and Traders (SMMT) suggest the UK’s planned route toward a large‑scale electric car transition was founded on expectations that, in hindsight, were far too optimistic.

The Zero Emission Vehicle (ZEV) mandate requires carmakers to sell an increasing share of electric vehicles over the next decade.

The SMMT believes many of the assumptions underpinning earlier projections, particularly those concerning consumer uptake, industry readiness, and supporting infrastructure have not materialised as anticipated.

Although the UK holds one of the strongest battery electric vehicle (BEV) market share among major European nations, it is still falling behind its own ambitions.

In 2025, battery electric vehicles (BEVs) represented 23% of all new car registrations. This is short of the 28% required under the ZEV mandate and below the 26% share the Government once expected the market would reach naturally, without any regulatory intervention.

This underperformance comes despite British car buyers having access to a wide range of more than 160 BEV models, made possible by car manufacturers investing billions of pounds to expand electric options.

To compensate for the slower‑than‑expected growth, the automotive industry has been supporting demand through unprecedented discounting.

This has totalled over £10 billion in price reductions in the past two years.

According to the SMMT report, these tools have helped soften the gap between political targets and consumer uptake, but they are neither practical nor financially viable in the long term.

By the end of 2027, the mandate requirements will increase sharply to 52% for cars and 46% for vans, setting a far steeper trajectory for the market.

Achieving these targets would require the BEV share of new car sales to double within just two years. For electric vans, the market share would need to quadruple.

Battery costs are now more than 30% higher than forecast and industrial energy costs in the UK and EU have surged since 2021.

These pressures have delayed the moment when electric vehicles can match petrol and diesel models on price, slowing consumer uptake.

While the charging network has expanded, public charging is more than 140% more expensive over the past five years.

Progress on installing ultra‑rapid chargers has also lagged, with only around 70% of motorway service areas meeting the target of six high‑speed chargers by early 2025.

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Mikes Hawes, SMMT CEO, commented: “The UK’S EV transition pathway was conceived with the best of intentions, but the assumptions behind it have proved over-ambitious.

“A landscape which once looked solid has turned out to be quicksand.

“Recognising the world of 2026 is not the one envisaged five years ago is not a retreat from ambition; it is a necessary step to achieving it.

“We need an urgent review that reflects today’s realities, that delivers decarbonisation not deindustrialisation and offers consumers the choice they have always expected.”