Union warns Labour will 'decimate auto industry' by not 'radically reducing' electric car targets

WATCH: Labour remains committed to the ZEV mandate transition, says Transport Secretary

|

GB NEWS

Felix Reeves

By Felix Reeves


Published: 11/06/2026

- 11:52

Unite claims that the ZEV mandate is 'significantly contributing to the loss of automotive jobs'

One of the UK's largest trade unions has issued a damning warning that the nation risks losing thousands of jobs if electric car targets are not changed.

Unite has called on the Government to protect automotive jobs by reducing the percentages included in the Zero Emission Vehicle (ZEV) mandate.


The ZEV mandate states that manufacturers must have at least 33 per cent of car sales and 25 per cent of van sales be electric by the end of the year.

Targets will increase every year, reaching 80 per cent of car sales and 70 per cent of van registrations by the end of the decade, followed by 100 per cent in 2035.

Unite has warned that the "jewel in the crown industry" of the UK could see jobs put at risk over issues with the ZEV mandate, which it described as "fundamentally flawed".

Manufacturers receive credits for electric car sales, which can be traded with other automakers who are not selling as many EVs.

Brands can be fined around £11,000 per vehicle if they do not meet the terms included in the ZEV mandate, potentially impacting businesses that may pass extra costs onto consumers.

Unite has warned that UK jobs are at risk if car makers opt to stop selling cars, rather than facing the prospect of huge fines per polluting vehicle.

Prime Minister Keir Starmer and Chancellor Rachel Reeves at a JLR factory in the West Midlands

The Unite union has issued a damning warning to Labour amid calls to reduce electric vehicle sales targets

|

PA

It has called for the overall target of how many EVs each manufacturer produces compared to internal combustion engine models to be reduced.

Unite has also backed a reduction in annual sales targets, which will rise to 38 per cent for cars and 34 per cent for vans next year.

The latest data from the Society of Motor Manufacturers and Traders (SMMT) shows that electric cars captured 27.3 per cent of the new vehicle market last month.

While almost 44,000 new electric cars were sold, and year-on-year sales jumped by 34 per cent, it remains below the targeted 33 per cent ZEV mandate goal.

Car production at the Nissan factory in Sunerland

The ZEV mandate requires manufacturers to have 33 per cent of sales come from EVs by the end of this year

|
PA

So far this year, 9.5 per cent of light commercial vehicle sales have been electric, with 21,180 being sold, although diesel vehicles still account for 83.4 per cent of the market share.

Sharon Graham, general secretary of Unite, said: "The current ZEV mandate is significantly contributing to the loss of automotive jobs in Britain. This is a clear fact. The targets must be radically reduced.

"The automotive industry is a jewel in the crown of UK manufacturing. Of which thousands of jobs depend.

"If the Government sits on its hands, it will be responsible for the decimation of the automotive industry."

Electric car charger

More than 50 popular EVs are eligible for discounts through the Government's Electric Car Grant

|
GETTY

Labour has been under pressure from manufacturers and industry groups, including the SMMT, who argue that targets must be pragmatic.

The Department for Transport confirmed that a review of the ZEV mandate would take place in early 2027, which has also been criticised.

Decarbonisation Minister Keir Mather said positive EV sales data provide that the transition to electric vehicles was on track, noting that the Government had invested over £7.5billion to support production, charging and sales.

More than 110,000 drivers have already made use of the Electric Car Grant since it was confirmed just under a year ago. Motorists can save up to £3,750 off the price of a new electric car through the scheme.