Dealers say revised ZEV Mandate offers “breathing space” – but more action needed

More than half of UK car dealers believe the government’s revised Zero Emissions Vehicle (ZEV) Mandate will create much-needed “breathing space” for electric vehicle (EV) sales, according to new findings from the Startline Used Car Tracker.

The latest data reveals that 53% of dealers welcome the updated regulations, which include extended allowances for hybrid sales until 2035, reduced fines for missing electric vehicle targets, and more flexible production credits.

These adjustments are seen by many as a sign that the government is finally listening to motor industry concerns, with 41% of dealers saying the revisions reflect a more responsive approach.

However, optimism is tempered by caution. 45% believe further government intervention will be necessary to properly support the transition to electric, while 35% argue that fundamental issues - particularly around public charging infrastructure - remain unresolved.

Paul Burgess, CEO at Startline Motor Finance, commented: "This amounts to a cautious welcome for the ZEV Mandate changes by dealers. They think the government has taken on board the concerns raised and taken actions that will at least buy some time. However, our research also indicates they have quite a long list of ongoing concerns about the electric car market."

The report also shows a more divided view on the likely impact of the reforms, with 32% of dealers saying the changes don’t go far enough to make a significant difference to new EV sales. A further 32% say similar levels of support are now needed in the used EV market, which remains volatile.

Burgess added: "Our reading of these results is that dealers think the ZEV Mandate changes are more of a holding pattern than a long-term solution. It could be that its targets and regulations need to be revisited periodically in response to real-world market conditions, and the road to new car market electrification will be more of a bumpy one than once envisaged."

The Startline Used Car Tracker, compiled by APD Global Research, surveyed 301 consumers and 66 dealers in June.