The UK’s Zero Emission Vehicle (ZEV) Mandate faces sharp criticism from Robert Forrester, chief executive of Vertu Motors plc, one of the nation’s largest car dealership groups. He describes the government’s targets for phasing out petrol and diesel cars as “delusional and utopian,” arguing they ignore current market realities.
ZEV Mandate Requirements
The mandate requires car manufacturers to increase electric vehicle sales progressively. In 2024, at least 28% of new vehicles sold in the UK must be fully electric, rising to 33% in 2026, 38% in 2027, 52% in 2028, 66% in 2029, and 80% by 2030. Beyond 2030, only hybrid vehicles and select low-volume producers can sell petrol and diesel models, with a complete ban on new combustion-engine cars by 2035.
Market Demand Lags Behind Targets
Forrester highlights a significant gap between government goals and consumer demand. “The actual demand for electric vehicles is substantially lower,” he states. “This is aggregate demand—business and consumer—is materially lower than the targets. Underlying consumer demand is not there in proportion to the targets. Over time, it will be there.”
Data from the Society of Motor Manufacturers and Traders (SMMT) supports this view. New electric car registrations rose by just 0.1% in January 2025, capturing only 20.6% of the market—13% below the year’s end target.
Penalties and Industry Strain
Manufacturers missing these targets face fines of £12,000 per non-compliant vehicle, prompting widespread discounting of electric models to avoid penalties. Forrester warns of broader issues: “The problem is the government thinks they can manage the economy by dictating to the market, and there are big unforeseen consequences of that. At the moment, it is the manufacturers who lose money selling electric vehicles, having invested billions of pounds in R&D to make them.”
EU Adjustment Contrasts UK Stance
The European Union recently softened its ambitions, lowering the 2035 target from 100% zero-emission vehicles to 90%. In contrast, the Department for Transport affirms its commitment to phasing out all new non-zero-emission car and van sales.
Forrester calls for adjustment: “The Europeans have watered it down; we need realistic market-led targets. You have to have a target, which is fine. We need to be far more in line with the actual adoption rate of consumers.”
