The UK government has announced a significant softening of its Zero Emission Vehicle (ZEV) Mandate, in an effort to shield the domestic automotive industry from the effects of punitive new tariffs imposed by former US President Donald Trump. The move comes amid mounting global trade tensions, with the US recently introducing a 25% levy on car imports, hitting British exports particularly hard.
Transport Minister Heidi Alexander said the government is “absolutely seized of the fact” that it must do everything possible to “shelter British businesses”. Among the changes are reduced penalties for carmakers that fail to meet electric vehicle (EV) sales targets, new exemptions for low-volume luxury manufacturers, and the extension of hybrid vehicle sales through to 2035 – a five-year reprieve from the previous deadline.
High-end UK carmakers such as Aston Martin, Bentley, and McLaren – all of whom rely heavily on exports to the US – will be among the key beneficiaries. Jaguar Land Rover, the UK’s largest automotive employer, has already paused shipments to the US for a month, citing the need to “mitigate the costs of the tariffs”. Last year, British manufacturers exported over 1 million vehicles to the US, worth £7.6 billion, making it the country’s second-largest car export market after the EU.
Prime Minister Keir Starmer acknowledged the geopolitical pressures behind the policy shift, stating: “The world has fundamentally changed,” and adding that securing a post-tariff trade agreement with the US remains a top priority.
As part of the revised strategy, the government has pledged a £2.3 billion support package aimed at bolstering domestic EV manufacturing and uptake. This sits alongside more than £6 billion in private sector investment already earmarked for charging infrastructure. Despite these changes, officials confirmed there will be no alteration to the UK’s headline target of ending the sale of new petrol and diesel cars by 2030.
Industry reaction has been varied. Mike Hawes, Chief Executive of the Society of Motor Manufacturers and Traders (SMMT), welcomed the greater flexibility, but cautioned that “greater action will almost certainly be needed to safeguard our industry’s competitiveness” in the face of such strong international headwinds.
Others echoed that sentiment. Philip Nothard, Chair of the Vehicle Remarketing Association, described the shift as pragmatic, noting that “existing targets were proving unrealistic” and that falling residual values for EVs in the used car market were compounding the problem. However, critics warned the move could undermine long-term decarbonisation goals. Peter Golding, Managing Director of FleetCheck, said that delaying the phase-out of hybrid and diesel vans until 2035 “potentially gives fleet operators an excuse to continue using internal combustion engine vehicles”.
Sue Robinson, Chief Executive of the National Franchised Dealers Association, cautioned that while the UK remains one of the most ambitious countries in pushing EV adoption, it must not fall behind its European counterparts. She urged the government to introduce stronger incentives to encourage consumer uptake. Her concerns were mirrored by Ian Plummer, Commercial Director at Auto Trader, who called for targeted tax breaks such as cutting VAT on public EV charging to support demand.
Russell Olive, UK Director at vehicle technology firm Vaylens, pointed to the urgent need for further investment in charging infrastructure, warning that “fleets can’t steer through uncertainty alone”.
While the softened rules are likely to offer short-term relief to British carmakers navigating global trade disruptions, many in the industry stress that deeper reforms will be necessary to sustain the UK’s position in the rapidly evolving global EV market. That includes not only regulatory clarity and supply chain resilience, but also a renewed focus on making electric vehicles more affordable and accessible for consumers.
