Driving Change: How the UK’s Evolving Electric Vehicle Targets Are Reshaping the Legal Landscape

Words by Law City intern, Sabyia Ahmed

The United Kingdom is accelerating its transition to electric vehicles (EVs), implementing what has been described as one of the most ambitious zero-emission mandates in the world. These targets are a central part of the UK’s strategy to reduce carbon emissions and reach net-zero by 2050. However, while the policy direction is clear, its implementation is proving complex. Manufacturers have raised concerns about feasibility, the government is exploring modifications, and the legal landscape is adapting in real time to meet new demands. This article explores the current state of the UK’s EV targets, the challenges they present, and the legal implications for professionals advising clients in sectors such as automotive, infrastructure, energy, and finance. At the heart of the UK’s electric transition is the Zero Emission Vehicle (ZEV) mandate, formally set out in 2023. Under this policy, car manufacturers are required to ensure that 22% of new car sales and 10% of new van sales in 2024 are zero-emission. These targets will then increase annually, reaching 80% for new cars and 70% for vans by 2030, with a complete shift, 100% of new cars and vans, required to be zero-emission by 2035 (UK Government, 2023).

As of late 2024, EVs made up just 18% of new car sales in the UK, below the 22% required under the ZEV mandate (Financial Times, 2024: Nissan to warn jobs at risk as UK EV targets push car industry to ‘crisis point’ ). With the target set to increase to 28% in 2025, manufacturers fear they will struggle to comply and risk being hit with fines of up to £15,000 per non-compliant vehicle. Nissan has warned that the industry is being pushed to a “crisis point” and that continued pressure without policy adjustments could put UK jobs and investment at risk.

Stellantis, the parent company of Vauxhall, and BMW have also voiced concerns, with BMW even pausing a planned £600 million investment in its electric Mini line due to regulatory uncertainty (Financial Times, 2024: BMW pauses £600mn investment plan to produce electric Minis in Oxford ). Adding to the challenge is what some describe as a “chicken and egg” problem: EV uptake is being held back by the slow rollout of public charging infrastructure, while investment in that infrastructure is limited by current levels of EV adoption (Local Government Association, 2023: Electric vehicles: What’s going on out there? | Local Government Association ).

In response to industry backlash, the UK government has acknowledged that some flexibility may be needed. Among the changes under consideration are allowing EVs manufactured in the UK but sold abroad to count toward ZEV targets, and reintroducing consumer subsidies for EV purchases, particularly aimed at private buyers, who currently lag behind fleet operators in adopting electric vehicles (Financial Times, 2024: UK government considers ‘flexibilities’ to help carmakers hit EV targets ).

These rapid developments present numerous implications for legal professionals, particularly those advising clients in automotive, energy, infrastructure, and financial services. As manufacturers shift their business models to comply with evolving regulations, legal teams will be critical in navigating both immediate compliance issues and long-term strategic restructuring.

In the energy and infrastructure sectors, the anticipated surge in EVs will drive increased demand for charging infrastructure, grid capacity upgrades, and associated construction projects. This raises complex legal questions around planning, procurement, environmental regulation, and land acquisition. Legal support will also be crucial for navigating the regulatory processes required for large-scale infrastructure deployment.

Financial institutions are also expected to play a growing role in funding EV initiatives, whether through direct investments, green bonds, or public-private partnerships. Legal advisors will be key in structuring these deals, managing risk, and ensuring compliance with both financial and environmental standards. The UK’s EV strategy is more than just a green policy, it’s a wide-reaching transformation of the transport, energy, and manufacturing sectors. While the transition poses serious challenges,particularly regarding timing, infrastructure, and market readiness, it also opens the door to innovation, investment, and collaboration.

For legal professionals, staying on top of regulatory changes is now essential. The path to 2035 will not be straightforward, but those who can guide clients through uncertainty, while identifying and capitalising on emerging opportunities, will play a pivotal role in shaping the country’s cleaner, electrified future.