The UK’s Department for Transport (DfT) is expected to officially launch a formal consultation this week to review and potentially relax the Zero Emission Vehicle (ZEV) mandate.

Reports from The Times and automotive industry updates confirm that the Government is opening an imminent, fast-tracked six-week review following heavy lobbying from legacy car manufacturers.

The consultation will evaluate scaling back near-term electric vehicle sales targets under the ZEV mandate to protect manufacturing jobs and the market viability of major automotive brands.

The current mandate requires 33% of new cars sold this year to be pure electric, rising to 80% by 2030. One option under consideration would reduce that 2030 threshold significantly, potentially to as low as 50%, with manufacturers given greater flexibility to meet sales targets. Pure petrol and diesel car sales are due to end in 2030, with hybrid vehicles permitted until 2035.

The review is expected to include a “significant section” on relaxing rules for plug-in hybrid vehicles (PHEVs). This follows Department for Transport (DfT) data showing that around one in five PHEV owners have no way to charge their vehicles at home, alongside European Commission research finding that plug-in hybrids emit 3.5 times more CO2 in real-world driving than official test figures suggest, largely because they are not being charged and driven electrically as often as assumed.

Figures released from the Society of Motor Manufacturers and Traders (SMMT) last week showed 23,359 plug-in hybrids registered in July, accounting for 14.9% of the total market.

The consultation is also expected to look at easing the ZEV mandate fines. Under the current rules, carmakers face punitive fines of £12,000 per vehicle that misses the EV quota. The consultation will consider reducing these penalties or providing broader structural loopholes to offset them.

The new Burnham administration is attempting to balance net-zero commitments with economic reality. Insiders admit that consumer EV demand has not matured at the lightning pace initially projected, leaving several legacy brands exposed to severe compliance penalties.

While the UK government had already scheduled a baseline review of the Zero Emission Vehicle (ZEV) mandate, intensive lobbying from legacy car manufacturers has fast-tracked this following aggressive campaigning in recent months, spearheaded by the SMMT. Manufacturers argue that regulatory targets are running unsustainably ahead of natural market demand, forcing them to heavily subsidise and discount brand-new electric cars while absorbing massive marketing costs.

However, the impending U-turn has generated furious resistance. Over 40 major industry leaders and green groups – including InstaVolt, Octopus Electric Vehicles and Openreach—have written an open letter warning Transport Secretary Heidi Alexander that a policy shift will instantly derail billions of pounds of committed infrastructure investment while also preventing more families from accessing the savings EVs can provide.

Abby Chicken, head of sustainability at Openreach, said: “We’re already electrifying the UK’s second largest commercial fleet – with more than 7,000 EVs on the road and over 4,000 charging points in place. This is a long-term commitment and we’re continuing to invest as we work towards our targets.

“And while we’ve made good progress, there’s more to do. Keeping that momentum going will be important. Clear, consistent government policy can help businesses keep investing, alongside support to tackle challenges like vehicle availability, upfront costs and reliable charging.”

New polling from Savanta for the Climate Barometer Tracker has found that over half (54%) of Labour MPs support the target of phasing out petrol and diesel vehicles by 2030, compared to less than one in five (17%) who oppose it.

Colin Walker, head of transport at the Energy and Climate Intelligence Unit (ECIU), said:  “Despite calls from parts of the industry for the Government to weaken its EV sales target, the majority of MPs recognise that sticking to the 2030 phase-out is necessary if the savings that come from EV ownership are to be accessible for all British households.”

Furthermore, environmental analysts from BEAMA, the UK manufacturing trade association for the electrotechnical and energy infrastructure sector, warn that dropping the 2030 milestone to 50% would dump an extra 19 million tonnes of lifetime carbon into the atmosphere.

Dominic Phinn, head of transport at Climate Group, argued that the ZEV mandate is a critical, unified roadmap that protects British manufacturing and jobs, warning against weakening targets amidst rapid global electrification.

Climate Group’s recent data shows 70% of major global corporate fleets avoided buying internal combustion engine vehicles last year, and Phinn cautioned that reversing these targets would damage UK competitiveness and hinder cost-effective climate action.

“A watering down of the ZEV mandate could undermine any agenda for growth and economic competitiveness, and sabotage one of the cheapest, most effective climate protection tools we have at a time when our world is, literally, on fire,” he stated.

And Toby Poston, chief executive of the BVRLA, said the transition to cleaner, greener vehicles relies on people being informed.

“Dealers need to understand the technology so they can help their customers buy with confidence. The BVRLA is training dealers to give them that knowledge to pass on. Plug-in hybrids can deliver real fuel and emissions savings, but the technology only works as intended if drivers understand how to use it. For people to switch to hybrids and full electric vehicles, education is essential.”

Meanwhile, the charging sector has also warned about the impact on infrastructure investment.

Delvin Lane, CEO at InstaVolt, remarked: “Ultra-rapid charging investment doesn’t happen on the back of uncertainty. We’ve invested hundreds of millions of pounds into the UK’s charging network because government policy gave us a clear runway to plan against. Softening the mandate at this stage risks spooking exactly the private capital that’s been building the infrastructure this transition depends on.”

And Tanya Sinclair, CEO of the Electric Vehicles UK “industry-to-consumer accelerator”, commented: “The ZEV mandate isn’t the problem. The problem is many of those responsible for delivering it are spending more time complaining about demand than creating it.

“Car manufacturers are among the biggest and most sophisticated marketers in the world. Claims that demand simply isn’t there ring hollow. They know better than most that demand doesn’t just appear. It is built.

“The mandate isn’t too ambitious. It is deliberately flexible. Nor are EV sales falling short of requirements.

“If everyone involved spent half as much time building consumer demand – as we do at EVUK – as they do arguing over percentages, we would be much closer to a fully electric future.”