The Labour government is facing mounting pressure to reconsider its flagship Zero Emission Vehicle (ZEV) mandate, with the potential for the 2030 ban on new petrol and diesel car sales to be significantly watered down.
Industry Calls for a "Balanced Transition"
The National Franchised Dealers Association (NFDA) has formally written to Labour's Transport Secretary, Heidi Alexander, urging a review of the current policy framework. The trade body, representing car dealers across the nation, argues that the mandate must adapt to the rapidly evolving automotive market.
NFDA chief executive Sue Robinson confirmed that discussions with the Department for Transport will continue into the new year. She emphasised the need for a pragmatic approach, stating the association is committed to collaborating with the Government to ensure a transition that supports both businesses and consumers.
The NFDA's demands to facilitate this shift include:
- Greater investment in public charging infrastructure, with a focus on improving provision in rural areas.
- A mandatory annual target to ensure the government meets its goal of 300,000 public charge points by 2030.
- The scrapping of new taxes on public charging, which it warns could deter EV adoption.
Taxation and Policy Instability Deterring Buyers
Further complicating the push towards electric vehicles are fiscal policies. The NFDA highlighted the expensive car supplement within Vehicle Excise Duty (VED) as a major barrier. It argues the current threshold acts as a significant deterrent to purchasing new electric cars and has called for it to be either abolished or raised to £50,000 to stimulate demand.
The call for policy stability was echoed by industry leaders. Tanya Sinclair, chief executive of Electric Vehicles UK, warned that business confidence is being damaged by ongoing "policy instability."
Manufacturers Divided on Mandate's Future
While some sectors urge flexibility, other manufacturers are pleading for the government to hold firm. Matt Galvin, Managing Director of Polestar UK, described the ZEV mandate as a "strong framework" that provides essential certainty. He cautioned that weakening it now would confuse consumers and could be "terminal" to reaching the 2030 and 2035 deadlines.
This sentiment was supported by Nic Thomas, UK managing director of Changan, who stated that reinforcing the ZEV mandate is crucial for making electric vehicles more accessible. He argued that a strong and consistent policy gives the entire industry the confidence needed to invest and innovate for the future.
The coming months will be critical as the Labour government weighs these competing pressures, balancing ambitious environmental targets against practical economic and consumer concerns in the journey to zero-emission mobility.
