Overview
- The Society of Motor Manufacturers and Traders pressed for an immediate review of the UK Zero Emission Vehicle (ZEV) mandate in late June, warning the policy is advancing faster than consumer demand and risks hollowing out domestic production.
- The mandate requires battery electric vehicles to make up 38% of new car sales from January 2027 and 52% in 2028 while current BEV market shares are about 23.9% for cars and 9.5% for vans.
- The SMMT says upcoming European 'Made in Europe' and tougher rules of origin could trigger a 10% tariff on roughly 70% of electrified vehicles traded across the English Channel from January 2027, putting about £16.4 billion of trade at risk and creating an estimated £1.4 billion tariff bill.
- Manufacturers report they have spent more than £12 billion subsidising EV sales with discounts, a practice the SMMT says weakens residual values and diverts funds from new investment and jobs while UK industrial energy costs remain high.
- Ministers are expected to meet industry leaders and launch a consultation on potential mandate changes before year end, with the SMMT urging fast action to realign regulation, trade arrangements and costs to keep Britain competitive.