The UK government is considering easing its electric vehicle (EV) sales targets, a move that industry experts warn could undermine the country’s efforts to compete with China in the growing global EV market. Reports indicate that the Prime Minister has overruled Energy Secretary Ed Miliband to modify the existing zero-emission vehicle (ZEV) mandate, which currently requires all new cars sold to be fully electric by 2035.

The government is expected to lower the interim target for 2030 from 80 percent of new cars being fully electric to a range between 50 and 70 percent, allowing plug-in hybrids to account for the remaining share. This potential policy shift, anticipated to be announced within the coming weeks, follows pressure from automotive industry stakeholders and labor unions worried about the prospect of job losses tied to the rapid transition toward fully electric vehicles.

A recent report from the New AutoMotive think tank cautioned that any relaxation of the UK’s ZEV targets would boost China’s competitive edge and risk significant financial consequences for the British automotive sector. Chinese manufacturers such as BYD and Chery have seen rising sales across Europe, with their vehicles now making up 17 percent of new fully electric car registrations in the UK.

According to the report, the current ZEV mandate encourages competition among manufacturers, helping to keep EV prices accessible for consumers while fostering industry growth. Weakening these targets may diminish Britain’s competitive positioning at a critical juncture, as the global EV manufacturing industry intensifies.

Vicky Edmonds, chief executive of EVA England, echoed these concerns, stating that encouraging UK carmakers to slow down their transition efforts just as consumer demand grows could lead buyers to seek alternatives from overseas brands.

The government has indicated that any changes to the ZEV mandate will undergo a consultation process before finalization. Meanwhile, the debate highlights the complex balance between environmental ambitions, economic investment, and industrial strategy as the UK navigates the transition toward electric transportation.