The UK government is poised to ease its Zero Emission Vehicle (ZEV) mandate, which requires automakers to meet rising annual sales quotas for electric vehicles, following similar moves by the European Union. The shift comes amid warnings from the automotive industry, including Nissan, that strict EV production targets could threaten manufacturing operations.
Nissan, which operates the UK’s largest vehicle plant in Sunderland, has expressed concerns that the current requirements pose risks to its operations. In response, UK Business Secretary Jonathan Reynolds told The Times that a “substantial change of policy” had been agreed upon. “We will do everything we can to make sure Nissan has that secure long-term future in the UK,” Reynolds said, emphasizing that the government aims to balance environmental goals with economic stability.
See also: UK Extends Electric Van and Taxi Subsidies Until April 2026
Under the current ZEV mandate, 28% of all cars sold by manufacturers in 2025 must be electric, up from 22% in 2024. Automakers failing to meet these targets face penalties or must purchase credits from companies exceeding their quotas.
The Labour government, which had pledged to reinstate a 2030 phase-out of new petrol and diesel cars, now appears open to adjustments, including greater flexibility in meeting targets over multiple years or allowing hybrid vehicles to count toward compliance.
See also: UK Government Drops Proposal to Double E-Bike Motor Power Following Public Opposition
The UK’s stance mirrors recent developments in the EU, where the European Commission has proposed giving automakers more time to meet emissions targets amid concerns over declining EV demand. In the UK, automakers including Ford and Stellantis have warned that accelerating EV sales without sufficient consumer demand is unsustainable. Ford has argued that forcing higher EV production levels without a corresponding market shift “just doesn’t work.”
Reynolds indicated the government seeks a balanced approach. “For us, it’s about being ambitious as to the destination [towards zero emissions] but making sure we’re working with business … to deliver on that ambitious end point,” he said. As policymakers in both the UK and EU weigh easing regulations, the next steps will depend on industry negotiations and parliamentary approval.
See also: UK Government Explores Loan Subsidies to Boost Private Electric Vehicle Sales
