The UK government is preparing to scale back the mandatory targets that require carmakers to sell a rising proportion of electric vehicles each year, but by a smaller margin than the industry had been pushing for, according to a report by the Financial Times.

The zero-emission vehicle (ZEV) mandate, introduced to accelerate Britain's transition away from petrol and diesel cars, obliges manufacturers to ensure a set percentage of their new car sales are fully electric, with the threshold rising annually. Carmakers face significant fines for missing the targets, and several major manufacturers have warned that current goals are unrealistic given sluggish consumer demand, high vehicle prices and patchy charging infrastructure across the country.

Industry lobby groups have spent months lobbying ministers for relief, arguing that the pace of the mandate does not reflect the reality of the market. Some firms have warned that failing to adjust the targets could force them to cut production of petrol and diesel models to avoid penalties, or to sell electric vehicles at a loss through heavy discounting just to meet quotas. Others have raised the prospect of job losses at UK plants if the rules remain too strict.

Despite this pressure, the government appears set to offer only a modest easing of the targets rather than the sweeping rollback that some manufacturers had sought. Officials are understood to be wary of being seen to retreat from Britain's broader climate commitments, including its pledge to phase out the sale of new purely petrol and diesel cars later this decade. A watered-down mandate risks criticism from environmental groups and clean energy advocates, who argue that any weakening of the rules could slow the UK's progress toward its net zero targets and undermine investment already made by companies that have moved quickly to electrify their lineups.

The ZEV mandate has been one of the most contentious elements of Britain's net zero strategy for the automotive sector, with ministers under competing pressures from an industry warning of economic strain and campaigners insisting the climate timeline must not slip. The expected compromise suggests the government is trying to strike a middle ground, offering manufacturers some flexibility without abandoning the overall direction of policy.

The decision comes at a sensitive moment for the UK car industry, which has been grappling with weaker-than-expected electric vehicle demand even as it invests heavily in new battery and EV production facilities. How the final targets are set will be closely watched by manufacturers, dealers and environmental groups alike, as it will shape investment decisions and the pace of Britain's shift to electric motoring in the years ahead.

Source: Financial Times

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