UK new car registrations exceeded 2 million in 2025, with electric cars making up 23.4%, but the reliance on heavy discounts to boost EV sales is deemed unsustainable by the SMMT, which warns that government incentives and policies like the ZEV Mandate may need review due to rising costs and market demand concerns.
Tesla lobbied the UK government to increase costs for petrol car buyers and extend electric vehicle mandates to lorries, aiming to boost its profits. The company praised Labour's decarbonization goals but faced tensions with the UK government due to Elon Musk's political comments. Tesla's lobbying efforts included strengthening the Zero Emission Vehicle mandate, which would benefit the company by allowing it to sell surplus credits from its EV sales.
A government report warns that the rise of electric cars in the UK will lead to an increase in traffic congestion due to the reduced running costs of EVs, prompting drivers to cover more miles. The report estimates that congestion costs will reach £78 billion over the next 50 years, higher than previous predictions. Despite concerns, building more roads is not seen as a solution, as they would quickly fill up. Cutbacks in public transport projects could also contribute to increased congestion. The government's ZEV mandate, requiring a certain percentage of cars sold to be electric, aims for 80% electric vehicle sales by 2030. However, some car manufacturers have expressed concerns about meeting the targets and fear a dampened consumer interest in electric cars due to the delay in the petrol car ban.