The government is reviewing its electric car sale quotas – one of its flagship green policies.
With 2025 having the lowest vehicle production in the UK since 1952, ministers are now looking at how to change the zero emission vehicle (ZEV) mandate, the government confirmed.
If it decides to lower the quotas, it would represent a U-turn on one of the government’s – and specifically Net Zero Secretary Ed Miliband’s – flagship green policies.
After coming to power in 2024, the Labour government introduced the mandate, which requires carmakers to meet annual quotas of zero-emission car and van sales, with the aim of banning new petrol and diesel car sales by 2030.
The percentage is to increase each year to get to a 100% target by 2035, with strict fines for non-compliance. The 2026 target is 33%, while it was 28% in 2025 and 22% in 2024.
A government spokesperson told Sky News: “We recognise manufacturers are facing challenges, but we’ve shown we are adaptable before, and are beginning conversations to inform the planned review of the ZEV mandate, to be published by early 2027.”
They added: “It has never been easier or cheaper to own an EV, especially against the backdrop of high and fluctuating prices at the pumps.
“Our electric car grant is boosting sales for manufacturers and industry is on track to meet its 2025 targets.”
One in four new cars sold last year was zero emission, up 25% on the previous year.
However, car production fell by 17% in February compared with the same period in 2025, new figures published on Friday found.
Production of battery-electric, plug-in hybrid and hybrid cars also fell by 3% to 26,629 units.
The Conservatives criticised the government for launching “yet another review” and called for ministers to “face reality and ditch their misguided net zero zealotry that has left hard-working families footing the bill”.
Richard Holden, the Tory shadow transport secretary, said: “Under Kemi Badenoch, the Conservatives have a plan ready to go, led by innovation and consumer choice rather than an ideological direction set by [net zero secretary] Ed Miliband.
“The government should adopt the Conservatives’ plan ASAP.”
Labour aims to have 1.3m vehicles a year manufactured by 2035 – nearly double the number of cars and vans made last year.
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The ZEV mandate is one of Net Zero Secretary Ed Miliband’s key green policies. Pic: Reuters
The ZEV mandate has been blamed for much of the latest fall, with manufacturers having to pay a penalty of £12,000 for each car they do not sell to meet the quota.
This has led to large discounts on EVs which has cost carmakers £10bn over the first two years of the mandate, the Society of Motor Manufacturers and Traders (SMMT) said.
However, last April the government removed some buyer incentives by ending the vehicle excise duty exemption for EVs and announcing a “pay-per-mile” road tax for EVs from 2028
In that same month, the government changed the ZEV mandate slightly after Donald Trump imposed 25% import tariffs on cars and car parts coming into the US, which, with the EU, is the UK’s largest market.
Hybrids can now be sold until 2035 and small manufacturers will be exempt from the 2030 phase-out of new petrol and diesel car sales.
The government also gave carmakers more choice in how they meet the ZEV targets.
