SMMT calls for immediate review of UK ZEV Mandate

David Leggett

Tue, June 30, 2026 astatine 11:16 AM CDT 5 min read

The UK auto's industry's commercialized body, the Society of Motor Manufacturers and Traders (SMMT), is calling for an contiguous reappraisal of the UK Government's ZEV Mandate. It says the reappraisal is required to align regularisation with marketplace reality.

The SMMT has besides warned that urgent enactment is needed for a assemblage nether unit from mounting costs, planetary protectionism and rising hazard of disinvestment.

Speaking astatine the SMMT International Automotive Summit successful London, Chief Executive Mike Hawes said urgent decisions are needed to marque the modulation to zero emanation vehicles achievable, support EU-UK commercialized unfastened and marque the UK much competitory arsenic a spot to invest, build, sell, export and grow.

SMMT's latest State of the Automotive Nation study sets retired a 'blueprint' for the adjacent Prime Minister (Andy Burnham, who volition instrumentality implicit from Kier Starmer wrong the adjacent fewer weeks). It argues that 1 of the UK's astir strategically important high-value sectors tin instrumentality to growth, but lone if authorities moves rapidly to region the barriers holding it back.

The study welcomes caller progress, including £4 cardinal of DRIVE35 funding; enactment connected concern energy costs done the British Industrial Competitiveness Scheme (BICS); commercialized deals with the US, India and the GCC; EV grants; and regularisation to enactment self-driving vehicles. But it warns that these gains volition beryllium undermined unless 3 large issues are addressed:

• reform of the ZEV Mandate;

• securing just UK-EU trade:

• cutting the underlying vigor and concern costs that signifier concern decisions.

• The astir contiguous concern, according to the SMMT, is the ZEV Mandate. Manufacturers are committed to nett zero and person invested billions of pounds successful caller zero emanation exertion and models, but the regularisation is moving up of earthy marketplace demand. This, the SMMT maintains, is forcing companies to subsidise the marketplace astatine unsustainable levels, undermining residual values and weakening the UK arsenic some a marketplace and a manufacturing base.

  The unit volition summation sharply from January 2027, erstwhile yearly targets emergence to 38% BEV (battery electrical vehicle) income for cars and 34% for vans, earlier climbing again to 52% and 46% respectively successful 2028. Current marketplace shares are 23.9% for cars and 9.5% for vans. SMMT estimates that carmakers unsocial person already spent much than £12 cardinal connected discounts to stimulate request – wealth that could different person supported caller models, jobs and investment.

  The UK's ZEV Mandate was archetypal acceptable retired nether Boris Johnson successful 2020 and took effect successful 2024, erstwhile manufacturers had to guarantee that astatine slightest 22% of car income were electric.

  That fig roseate to 28% past twelvemonth (BEV car marketplace stock was 23.4% successful 2025) and had been owed to scope 33% successful 2026. The request was designed to ascent year-by-year until hitting 80% successful 2030, the aforesaid twelvemonth that income of caller petrol and diesel cars were scheduled to end.

  A reappraisal of the ZEV Mandate is reported to beryllium coming this year.

  'Made successful Europe' proposals and commercialized worries

  A 2nd menace is approaching fast, arsenic the UK risks being efficaciously unopen retired of its biggest marketplace – the EU. 'Made successful Europe' proposals enactment guardant by the European Commission would efficaciously marque UK automotive products uncompetitive successful the bulk of the European marketplace unless the EU accedes to UK calls for our products to beryllium recognised arsenic "assembled successful the EU" for these purposes. Four successful 5 (83.3%) UK automotive concern leaders accidental their UK operations would beryllium deed if the proposals spell up unchanged, and some the UK and EU basal to suffer retired fixed the interconnected quality of the sector, with the UK the EU's biggest automotive export marketplace and vice versa.

  In addition, from January 2027, tougher rules of root nether the EU-UK Trade and Cooperation Agreement volition trigger a 10% tariff connected immoderate 70% of artillery electrical and plug-in hybrid models traded crossed the English Channel. Without a associated solution, the SMMT estimates the assemblage faces a tariff measure of astir £1.4 cardinal successful 2027 alone, putting immoderate £16.4 cardinal of UK-EU artillery electrical and plug-in hybrid conveyance commercialized astatine hazard by making galore of these important models little competitory and little affordable.7

  According to an SMM survey, much than 9 successful 10 businesses (93.5%) accidental employment costs person worsened implicit the past year, portion 84.8% study higher input costs. While BICS volition help, 7 successful 10 automotive bosses accidental cutting vigor costs would person the astir affirmative interaction connected their business. UK vigor costs are inactive the highest successful Europe and, adjacent with BICS, would stay immoderate 60% supra the EU average. SMMT is, therefore, calling for further enactment to marque the UK a much competitory spot to manufacture.

  Mike Hawes, SMMT Chief Executive, said: "UK Automotive tin thrust growth, innovation and nett zero, but lone if the close decisions are taken now. The Industrial Strategy sets retired a plan, but transportation is present what matters. We request unfastened commercialized with Europe, competitory conditions astatine home, and a realistic way to turn zero emanation conveyance uptake. Reforming the ZEV Mandate is not astir weakening ambition; it is astir making the modulation achievable, protecting concern and ensuring the UK remains a spot wherever automotive businesses tin build, sell, export and grow. The model for enactment is closing, which means we cannot hold for lengthy discussions."

  Getting concern strategy, commercialized argumentation and the EV modulation close would enactment government's ambition for a UK assemblage gathering 1.3 cardinal vehicles a year. It would besides assistance support and turn Britain's automotive trade, already worthy much than £110 cardinal successful imports and exports annually – portion creating a home marketplace of 2.2 cardinal vehicles successful which zero emanation models are the earthy prime for astir drivers.

  "SMMT calls for contiguous reappraisal of UK ZEV Mandate" was primitively created and published by Just Auto, a GlobalData owned brand.