Amid reports that the Government is set to ease the ZEV mandate’s quotas, Tom Middleditch, sustainability spokesperson at Europcar Mobility Group UK, outlines why ministers must look at the bigger picture to stimulate EV demand.

From where we sit as a major partner for the OEMs, we appreciate that easing the pressure makes sense. There has been no shortage of headlines and comments from both manufacturers and franchised dealer groups that the current trajectory was becoming unworkable. The sentiment has been that a more realistic target would help stabilise the market for everyone who buys vehicles at scale, from major fleet businesses and corporates to the rental market.

However, shifting the targets won’t fix the bigger issue of creating demand. In fact, it could actually suppress it. And this is a concern when we should remember the core reason for the switch to electric. It is vital for the environmental and local air quality benefits.

At the front-end of electric vehicle usage, providing zero tailpipe emission vehicles to rent to businesses and private motorists, the Europcar EV Barometer tracks what’s holding businesses back from switching. And the latest data makes interesting reading.

In Q1 2026, concerns around the cost of purchase, maintenance and finance options were a bigger issue for businesses, rising nearly 5 percentage points compared to Q4 2025. The latest data also shows that despite the charging network expanding, infrastructure remains a key concern. In Q1 2026 29.5% of businesses cited this as a reason for delay, compared to 28.6% at the end of 2025

So, the big question of the anticipated consultation must be how demand will be stimulated and confidence built, even with a shift in the targets. That matters enormously for the fleet sector. Residual values, the ability to plan fleet investment, and business and private motorists’ willingness to choose an EV all depend on building confidence that electric is the smart long-term choice, not a decision that might be regretted once the tax and incentive landscape shifts again.

Unfortunately, right now the Government is creating more confusion than clarity which is doing nothing for confidence. The per-mile EV duty is still on the cards for 2028 and Benefit-in-Kind incentives that have done more than almost anything else to drive EV adoption are steadily being scaled back. The grants for home charger installation have also been changed. Rightly so, those who do not have their own driveway are being encouraged to go electric, but homeowners with a driveway no longer get any support.

The high VAT rate on public charging is also actively holding buyers back. Businesses and private motorists alike are awaiting the outcome of the HMRC appeal of the Charge My Street case, which found that public EV charging should qualify for the reduced 5% domestic VAT rate rather than the standard 20%. With 55% of drivers we surveyed earlier this year saying the current rate has actively deterred them from making the switch, it’s yet another example of mixed messages from government.

If the Government wants a slower, steadier path, we understand that. But it’s critical that it is a coherent one. Easing pressure on manufacturers while simultaneously making it more expensive and less convenient for businesses and ordinary drivers to go electric isn’t a balanced transition, it’s a contradiction. We urge the Government to look at these policies as a package, not in isolation, and to make sure that whatever changes come from the consultation still add up to a clear, positive case for switching to electric.

Currently the message to businesses, or anyone considering an electric vehicle is confusing at best, and at worst it looks like the Government is quietly stepping back from the switch to electric just as the market was gaining momentum. The constant chopping and changing of policy isn’t just bad for EV demand, it creates uncertainty, which is bad for business and economic growth.