Government urged to accelerate review of ‘disruptive’ EV sales targets
A leading London-listed car dealership has called on the government to speed up its review of electric vehicle sales targets, which it said “disrupts” the car sales market.
AIM-listed Vertu Motors has said the Zero Emission Vehicle (ZEV) mandate scheme is hitting its profits and “distorting” its volumes and margins.
The scheme was brought in to force carmakers to sell more electric vehicles each year or face steep fines, as part of the government’s plans to shift all new car sales to EVs by 2035.
The car dealership called on the government to fast-track its planned consultation on the scheme, which is not set to be published until next year.
Vertu Motors saw pre-tax profit fall by 18 per cent in the year to February 2026, to £20m, and attributed this slump in part to the ZEV scheme and its “related margin pressure”.
EV rules ‘create intense pressure’
The dealership said: “The ZEV mandate is distorting volumes, margins and channel mix for new car and commercial vehicles, alongside elevated discounting and potential non‑BEV supply constraints.
“The ratcheting of targets creates more intense pressure and the group has asked the government to urgently bring forward its review of the ZEV mandate from 2027 to 2026.”
Vertu Motors said the government’s EV targets are “very aspirational” and pose particular risk to the Light Commercial Vehicle (LCV) market, which includes small goods vehicles like vans.
Carmakers which miss the target for EV van sales face a £15,000 fine per van, while a £12,000 charge is set to be levied per car.
“The ZEV mandate looks certain to continue to disrupt the LCV market significantly in the coming periods as manufacturers seek to avoid fines,” the dealership said.
Review of mandate a year away
In December, the government sped up its review of the ZEV mandate slightly – bringing forward the start of the consultation to this year – but said it is still not due to report until 2027.
A government spokesperson said at the time: “We have not brought forward the ZEV Mandate review. As previously committed, we will publish the review in early 2027 which means preparatory work will begin next year so stakeholders can be properly engaged.
“Zero-emission vehicles are good for family finances and good for the environment – saving typical drivers as much as £1,500 a year on fuel and the transition to EVs is crucial to delivering jobs and growth, improved air quality, energy security, as well as quieter cleaner towns and cities.”
Vertu Motors said it also took a profit hit from the impacts of the cyber-attack at Jaguar Land Rover.
The car dealership was handed a £3.4m insurance payout earlier this year to account for the disruption caused to its vehicle supply, but said on Wednesday the total losses from the cyber-attack stood at £3.9m.