Zemo calls for stronger demand measures alongside a revised ZEV Mandate

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Mon 02 November 2026 View all news

Regulating vehicle supply alone will not deliver the transition to zero-emission vehicles, Zemo Partnership has told the Government in its response to the ZEV Mandate review. Drawing on a September workshop with members, Zemo called for a credible, affordable pathway that pairs a revised mandate with stronger measures to boost demand.

Manufacturers are meeting their targets so far, but increasingly through discounting and other costly incentives. With consumer demand below what the targets require, Zemo said the mandate should remain the framework, but its current trajectory should be revised while keeping ambition about decarbonisation. The case is strongest for vans, given the substantial gap between current uptake and mandated targets.

Zemo also called for a strategic review and roadmap for the UK automotive industry, looking at the ZEV Mandate alongside infrastructure, the energy system, supply chains, competitiveness and international trade.

The review should also consider what different targets would mean for energy planning, Zemo said. Knowing how fast EV uptake will grow helps the energy sector plan grid investment, so it urged closer working between the Department for Transport and the Department for Energy Security and Net Zero.

To strengthen demand for EVs, Zemo called for:

  • certainty on benefit-in-kind rates for electric vehicles until at least 2035

  • support for lower- and middle-income drivers, including social leasing, used EV support and finalising a battery health standard

  • reform of public charging costs, including the VAT gap with home charging, which impacts the third of households without driveways

  • a right for renters and leaseholders to request chargepoints, and public chargers suitable for vans

Zemo called for the planned pay-per-mile charge for electric vehicles (eVED) to be delayed until road transport taxation has been reviewed as a whole. The Office for Budget Responsibility has estimated that eVED will reduce EV sales by around 120,000 over five years. Any future charge should be based on actual, not forecast, mileage.

Zemo urged the Government to settle the post-2030 ZEV Mandate framework now, keep the existing compliance flexibilities and consider extending CO₂ conversion, so manufacturers are not left planning around an unresolved regime.

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