A fierce political battle has erupted yet again over the UK’s electric vehicle quotas, as carmakers and unions demand immediate cuts to the ZEV mandate while environmental groups urge the Government to hold firm.

The Business and Trade Committee (BTC) has called again for the Government to “fix” the mandate as it warns the current sales quotas threaten “to tip much of the industry into crisis” .

Last month saw MPs on the committee highlight an “existential risk” to the UK’s automotive sector from the combination of “outdated” ZEV mandate thresholds and the threat of new trade barriers with the EU.

On the back of its 20 May questions on reform of the ZEV mandate and wider issues in the UK automotive supply chain, the committee now says it’s received “alarming” correspondence that shows Ministers “see no need for urgency in fixing the ZEV mandate”.

Liam Byrne MP, chair of the committee, said: “The Government now admits that critical parts of the battery supply chain, including cathode active materials, are developing more slowly than expected, while manufacturers face rising costs, fierce international competition from unfairly subsidised Chinese rivals plus growing uncertainty in key export markets.

“Yet despite these warnings, ministers have refused to bring forward the review of the mandate, choosing instead to press ahead with targets that many in the industry fear are becoming increasingly detached from industrial reality.

“Surely it’s now time to pause and check whether aligning with the proposed European timetables makes sense, not least because our automotive supply chains are so interwoven.”

The campaign from the Business and Trade Committee follows lobbying from the UK auto industry through the Society of Motor Manufacturers and Traders (SMMT).

Trade union Unite has also called for a decisive reduction of the ZEV mandate targets to protect automotive jobs.

The union, which represents tens of thousands of automotive workers, believes that the current system is fundamentally flawed and is threatening jobs “in a jewel in the crown industry”.

It’s calling on the Government to reduce the percentages for the EV sales quotas.

Under the ZEV mandate, carmakers are required to ensure that they make an increasing percentage of electric vehicles sales each year. They receive credits for electric car sales and are fined if they don’t hit the targets, which increase on a yearly basis.

Unite says there is a growing gap between the number of electric vehicle sales being made by UK carmakers (roughly 25%) and the Government’s target. This year’s target is for 33% electric car sales.

Unite wants the overall target of how many electric vehicles each carmaker produces compared to internal combustion models to be reduced and is also demanding a reduction in yearly targets.

The trade body says it’s feared that without “radical action” from government, the gap between the ZEV mandate and the actual number of car sales will this year cost UK automotive producers in the region of £11k in fines per vehicle. It’s warned that carmakers will simply opt to stop selling cars rather than risk fines. Unite also said the credit system is only benefiting Chinese carmakers and Tesla.

However, data from independent UK think-tank New AutoMotive indicates that the UK car industry is on track yet again to meet the ZEV mandate.

Under the built-in flexibilities of the EV rules, carmakers earn credits through the sale of petrol, diesel and hybrid vehicles that emit comparatively low levels of CO2. These have the effect of lowering the car industry’s headline EV sales target.

It has been calculated by New AutoMotive that this means the real EV sales target for the car industry 2026 is 24.6%, rather than 33%. With market share for the year so far at 24%, and sales in May at 27%, the car industry is on course to comply with its EV sales target for 2026, just as it did in 2024 and 2025; the first two years of the mandate.

The statements from Unite and the BTC highlight a growing divide, arriving just days after EV charging representatives called on ministers to stand firm on the transition timeline.

A new report from industry body ChargeUK reveals the UK’s electric vehicle charging industry is poised to inject £15.5bn into the economy over the next decade, but this massive growth could be derailed if the Government heeds calls to weaken its EV targets.

And now the Climate Group has also urged the Government to “hold the line”.

Despite sections of the UK car industry once again pushing the Government to weaken the ZEV mandate – amplified by several MPs – the not-for-profit organisation has said the ZEV mandate is working.

Dominic Phinn, head of transport, clarified: “The regulation is already delivering more affordable EVs to UK consumers and businesses, protecting them from fuel price shocks and supporting investment across the UK economy. Leading companies in our EV100 network have invested heavily in electrification, based on the certainty the mandate provides – and they’re reaping the benefits of lower operational costs.”

Despite claims from automakers that they are struggling to meet the ZEV mandate due to a lack of demand, the Climate Group says evidence from groups such as New AutoMotive points in the other direction, particularly for electric cars which are attracting record-breaking consumer sales and interest following the fuel price crisis.

Phinn continued: “The UK government should resist any calls to weaken the policy or bring forward its planned review, and instead focus on removing the barriers that are actually slowing the transition.”

However, the Climate Group spotlighted the particular difficulties faced with van electrification and said a particular focus should be on van operators.

“To accelerate uptake, it’s important to continue supporting operators with upfront costs and bring down public charging costs,” Phinn clarified.

“The Government also needs to better facilitate depot charging, accelerate grid connections for depots and charging hubs, and expand home charging solutions to reduce on-the-job downtime. The electrification of transport is inevitable, so it should be a question of speeding up, rather than slowing down.”