UK Industry Group Calls EV Discounts Unsustainable

A UK industry group says electric vehicle discounts are unsustainable as manufacturers continue to pour billions into price cuts to meet government quotas. The Society of Motor Manufacturers and Traders estimates producers spent over £5 billion ($6.7bn) slashing prices last year, working out to approximately $14,838.56 per battery-electric vehicle. Chief Executive Mike Hawes said this degree of financial support from manufacturers cannot persist, particularly as requirements escalate to 33% this year from the prior 28% benchmark. 

Britain registered just over two million new cars in 2025, marking the third consecutive year of expansion. Electric vehicles represented 473,340 registrations, capturing 23.4% of the market. While this represents growth from 2024 levels, it falls short of government objectives under the Zero Emission Vehicles Mandate. 

The ZEV Mandate requires carmakers to sell electric vehicles as a specified percentage (28%) of total sales or face substantial penalties. Various mechanisms permit manufacturers to sidestep fines, including buying extra emissions credits from rivals that surpass their own requirements or cutting emissions from other models in their ranges. Authorities broadened these options and lowered penalty levels in April after vigorous manufacturer advocacy. 

Yet Hawes cautions that even with these modifications, producers still have to slash prices dramatically to move enough electric models. He urged authorities to accelerate a scheduled ZEV Mandate review currently planned for 2027, arguing it should examine factors that have shifted dramatically in recent years. Raw material expenses and energy costs have both climbed substantially, making operations more financially challenging for manufacturers, he noted. 

Perspectives on the mandate vary considerably, with Colin Walker, a senior policy analyst at the Energy and Climate Intelligence Unit, welcoming the registration data. He notes that approximately 25% of cars sold in 2025 were electric and believes this policy will ultimately strengthen Britain’s used car market, reducing financial strain on drivers. 

Chief Executive Ginny Buckley of Electrifying.com cautioned that many drivers still lack confidence about operating electric vehicles. Advancing sales from 25% to 33% by year-end won’t happen automatically, she said. 

Beyond widening vehicle selection, purchasers need assurance, straightforward information and predictable policy conditions, she argued. Group Managing Director Eurig Druce of Stellantis (owner of Vauxhall, Peugeot and Citroen brands) called for moving the review to early this year. Britain is increasingly misaligned with positions in Europe and globally, he said. 

Government actions send mixed signals. Authorities introduced a £2 billion ($2.68bn) grant program providing up to $5,058.60 toward electric vehicle purchases yet autumn budget plans announced a per-mile tax specifically targeting electric vehicles. The independent Office for Budget Responsibility projects the incentives could generate roughly 320,000 additional sales over five years, but the tax would eliminate approximately 440,000 sales, creating a net reduction of 120,000 vehicles. 

Hawes says this contradiction presents a notable challenge to the UK’s electric vehicle transition. Major technological shifts demand steady, rational and convincing communication alongside backing, he said. Simply publicizing a levy targeting electric vehicles specifically delivers highly contradictory signals to buyers, he added. Transport minister Keir Mather countered that government spending is propelling electric vehicle uptake, with sales advancing nearly 24% year-over-year. 

While automakers in the UK are complaining about the government’s policies aimed at accelerating EV uptake, auto sector players like Massimo Group (NASDAQ: MAMO) in the U.S. have to contend with a federal policy stance that is hostile to vehicle electrification. 

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