Executive Summary
- The government confirmed its intention to publish the response to the ZEV Mandate Review consultation by the end of 2026 in the recent Budget
- Logistics UK, representing more than 18,000 members across the transport industry, said ministers must create an operational environment that will make electrification commercially viable and achievable for the sector
- The Society of Motor Manufacturers and Traders meanwhile argued the need for ‘meaningful reform that closes the widening gap between natural demand and regulatory targets’
The government confirmed in the recent Budget it was committed to publishing a response to the Zero Emission Vehicle (ZEV) Mandate Review consultation by the end of 2026 – and various industry groups have had their say.
“The government is announcing an intention to publish the UK and devolved governments’ response to the ZEV Mandate Review consultation by the end of 2026, with a view to any changes taking effect from 2027,” the government confirmed last week.
The consultation for the mandate, which requires car and van manufacturers to sell an increasing share of zero-emission vehicles each year moving to 80% by 2030 and 100% by 2035, ran out on 23 October, so the news was more an affirmation than anything spectacular. Yet it provided an opportunity for those embedded in the sector to weigh in, ranging from delivery metrics to closing the gap between demand and regulation.
Logistics UK, ranging across the transport industry and more than 18,000 members, called upon ministers to create an operational environment that will make electrification commercially viable and achievable for the logistics sector.
Policy ambition must be matched by delivery, as chief executive Ben Fletcher put it. “The logistics sector is committed to decarbonisation, and businesses are already investing significantly in electric vehicles and charging infrastructure, but government policy must reflect operational reality,” said Fletcher. “The electrification transition needs to start from the ground up to give businesses the confidence and practical means to invest in zero-emission fleets without compromising their competitiveness.”
For Logistics UK, there are growing concerns from logistics operators – and the body has urged government to prioritise faster and more affordable grid connections for logistics sites as a result. The UK’s continued high cost of electricity, Logistics UK added, was key; with tight margins, the electrification transition needs to be supported by a clear and realistic policy framework reflecting the operational challenges facing the sector.
“The challenge is not a lack of ambition from industry, but it is the lack of charging infrastructure, grid capacity and affordable electricity that is inhibiting the adoption of greener electric fleets,” added Fletcher. “Where electrification is mandated, government must ensure logistics businesses are prioritised for electricity access and grid upgrades.”
For the Society of Motor Manufacturers and Traders (SMMT), meanwhile, government must meet the deadline it has imposed with ‘meaningful reform that closes the widening gap between natural demand and regulatory targets’, according to chief executive Mike Hawes.
eVED, a tax specific to electric vehicles, as well as clarification on the law to apply higher VAT on public charging compared to domestic equivalents, risks ‘discouraging the very drivers the transition needs to persuade’, Hawes added.
“Industry’s commitment is unequivocal; billions invested in UK factories, supply chains and new models, with around 180 battery electric models available and more coming – whatever the review decides,” wrote Hawes. “On top of that investment, manufacturers have also funded at least £10 billion in discounts in the Mandate’s first two years. That level of support is unsustainable. It erodes profitability, depresses residual values for consumers and diverts resources from the products and production capacity needed to decarbonise.
“Reforming the Mandate is not a retreat from electrification,” added Hawes. “If automotive is to participate in UK reindustrialisation, policy must make Britain competitive, help consumers switch and enable manufacturers to invest, rather than spend ever more bridging the gap between regulation and demand.”
Picture credit: Created with Magnific
