The UK Government has launched a major review of the Zero Emission Vehicle (ZEV) Mandate, opening the door to potential changes to the targets that determine how many electric cars manufacturers need to sell each year.
For anyone considering switching to an electric car, the headlines might create some uncertainty. Is the Government slowing down the transition to electric? Could EV prices change? And does it make sense to wait before leasing an electric car?
Here’s what we know so far, and what the review could mean for UK drivers.
What is the ZEV Mandate?
The ZEV Mandate requires vehicle manufacturers to ensure an increasing proportion of the new cars and vans they register in the UK are zero emission.
Under the current rules, the target for new cars is 33% in 2026, rising over the next four years:
| Year | Zero-emission car target |
|---|---|
| 2026 | 33% |
| 2027 | 38% |
| 2028 | 52% |
| 2029 | 66% |
| 2030 | 80% |
Manufacturers have various ways of complying with the scheme, but ultimately the policy is designed to encourage more zero-emission vehicles onto UK roads.
That has implications beyond manufacturers themselves. The pressure to increase EV registrations can influence the number of electric models brought to the UK, manufacturer incentives and, ultimately, the deals available to consumers and businesses.
What is the Government reviewing?
On 14 August 2026, the Government officially launched a consultation reviewing how the ZEV Mandate is working.
Importantly, the ZEV Mandate hasn't been scrapped and its current targets haven't been changed.
Instead, the Government is asking whether the existing pathway remains appropriate and whether adjustments should be made.
The review will look at areas including:
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the annual ZEV targets manufacturers must meet;
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the existing flexibilities available to manufacturers;
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alternative approaches to addressing challenges within the current system;
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potential technical changes to the Mandate; and
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the carbon impact of any proposed changes.
The consultation closes on 23 October 2026.
Is the 2030 petrol and diesel deadline changing?
The Government says it remains committed to phasing out sales of new cars powered solely by petrol and diesel in 2030, with all new cars and vans required to be zero emission by 2035.
The review is therefore less about whether the UK transitions to electric vehicles and more about how quickly manufacturers should be required to get there.
The consultation also asks for views on how the 2030 phase-out should be defined, making the detail of the eventual policy particularly important.
Why is the ZEV Mandate being reviewed?
A lot has changed in the automotive market.
Manufacturers have invested billions in electrification, but the industry is also dealing with higher energy costs, increased international competition and uncertainty surrounding export markets.
The Government says it wants the transition to zero-emission motoring to continue while keeping the UK automotive industry competitive and supporting jobs and investment.
At the same time, electric vehicle adoption continues to grow.
According to the Government, more than one in four new cars sold in the UK is now electric, while EV sales in July were 45% higher than a year earlier. There are also now more than two million electric vehicles registered on UK roads.
So this isn't a review taking place against a backdrop of disappearing EV demand. Instead, it's about deciding the pace and structure of the next stage of the transition.
What could a change to the ZEV Mandate mean for EV prices?
This is where things become particularly interesting for leasing customers.
The ZEV Mandate gives manufacturers a strong reason to increase the number of electric vehicles they register.
That can encourage manufacturers to offer attractive finance and leasing support to help move greater volumes of EVs.
If future ZEV targets are reduced or manufacturers are given substantially more flexibility, some of that pressure could ease.
That doesn't automatically mean electric cars will become more expensive to lease. Leasing prices are influenced by many factors, including manufacturer support, vehicle supply, interest rates and expected residual values.
But changes to the Mandate could alter the competitive dynamics that have helped produce some exceptionally attractive electric car leasing deals.
Should you wait before leasing an electric car?
The existing ZEV Mandate remains in place, manufacturers are continuing to launch new electric models, and the Government continues to support the wider transition towards zero-emission transport.
A lease allows you to choose an electric car based on today's technology, pricing and requirements, rather than trying to predict exactly what the EV market might look like several years from now.
At the end of the agreement, you simply hand the vehicle back, subject to the terms of your lease.
For drivers who want to switch to electric without committing to owning the vehicle long term, that flexibility can be particularly attractive while EV technology and Government policy continue to evolve.
What happens next?
The ZEV Mandate consultation runs until 23 October 2026.
After considering responses from manufacturers, consumers and the wider automotive and EV industries, the Government could decide to amend the Vehicle Emissions Trading Schemes Order that underpins the Mandate.
Until then, headlines suggesting the Government has already weakened or abandoned the ZEV Mandate should be treated with caution.
The review could lead to changes, but no new trajectory has yet been decided.