The Society of Motor Manufacturers & Traders (SMMT) has renewed its call for the government to overhaul the regulation covering the ZEV Mandate.
It said the economic conditions for delivering EV growth in 2026 are “far more challenging” than expected when the mandate was designed five years ago.
“Manufacturers have responded, with rapid model rollout and discounts on their sale worth £10 billion over the last two years. Assuming industry will indefinitely absorb every additional cost, however, will only turn away investors and put jobs at risk.
“This is not an argument for slowing the transition – to which industry remains committed – but it is an argument for regulation that is credible from a market and economic perspective.
“Manufacturers have shown they can innovate, invest and supply at pace and scale. The next phase must be about ensuring regulation, infrastructure and fiscal incentives fully support these efforts.
Hawes said the sector has come a long way. In 2016, there were 14 EV models on the market, now there are almost 170.
Competition and innovation are only increasing with 51 manufacturers now offering EVs, up from 12 in 2016.
The SMMT is forecasting BEVs will reach 26.8% market share by year end, lagging the 33% mandated by government.
