The ZEV Mandate changes have introduced what the government calls ‘flexibilities’ around how manufacturers must meet sales targets for EVs in the run-up to 2030. They also granted a heavily-trailed stay of execution for plug-in hybrid models, which use electric and internal combustion powertrains, up to 2035 but industry insiders scoff at the notion that stability has been achieved. 

Policy threats to the car industry

Discussions Auto Express has had with highly placed car retail group executives suggest they see a number of threats posed by current government policy. These include the potential rationing of petrol and diesel vehicles by dealers as happened in 2024, in order to meet ZEV Mandate EV sales percentage targets. 

They also point to restricted consumer choice with drivers being coerced into vehicles they don’t really want, and the possibility of cutbacks in UK car production costing jobs.

Greenwood’s revelation that a VED luxury car tax break for EVs could be on the cards may prove to further destabilise the EV market if customers choose to hold off on purchases as a result. 

The next ‘fiscal event’ in Labour government parlance will be the autumn budget – still many months away. Now the cat is out of the bag, the question is whether Labour will be forced to move sooner with a road tax cut, in order to provide clarity to car buyers considering a new EV purchase in those interim months.

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