Authored by Ross Clark via CapX,
This week it seems that another Net Zero domino will fall. The British Government is reported to be on the point of announcing that the Zero Emission Vehicle (ZEV) mandate, which lays down targets for the sale of new cars, will be watered down. This follows a consultation launched in August. At present, manufacturers are under an obligation to ensure that a rising percentage of their vehicles are pure electric or else face punitive fines of up to £12,000 for every petrol and diesel vehicle they sell over the limit. The required proportion rises from 33 percent in 2026 to 80 percent in 2030 and thereafter to 100 percent by 2035, at which point even hybrids will be banned. The UK car industry is falling well short of the targets, in spite of offering large incentives on electric vehicles. 26.6 percent of new cars sold in Britain so far this year have been pure electric. The industry also fell short of the 22 percent and 28 percent targets in 2024 and 2025 but largely avoided fines because of get-out clauses which made some allowance for increased hybrid sales.
Actually, the situation for UK manufacturers is more dire than the above figures suggest. A growing share of electric vehicle sales are coming from Chinese manufacturers who are able to undercut European ones, thanks in part to China's dominance in battery manufacturing. Jaecoo accounted for 1.2 percent of the UK market in 2025 and 3.4 percent so far in 2026.
