Hyundai’s European boss, Xavier Martinet, has warned that Britain’s strict electric vehicle (EV) targets under the Zero Emission Vehicle (ZEV) mandate risk causing “severe disruption” in the market.

He suggested the policy no longer makes sense and requires a “reality check,” potentially leading some carmakers to stop selling vehicles in the UK altogether- both internal combustion engine (ICE) and electric models- if they can’t meet the escalating requirements without incurring heavy losses.

The UK’s ZEV mandate requires manufacturers to ensure a growing percentage of their new car sales are zero-emission (primarily EVs), starting with targets like 33% in recent years and ramping up significantly toward 80% by 2030 and 100% by 2035, with fines up to £12,000 per non-compliant vehicle.

Martinet highlighted that while Hyundai (the UK’s sixth-largest car brand by sales) is currently meeting its obligations- thanks in part to successful models like the affordable Inster electric city car- the annual increases make the targets “even more severe” than those in the EU, which has recently relaxed some of its own 2035 goals.

He pointed out that forcing manufacturers to hit unrealistic sales volumes amid lower-than-expected consumer demand could make operations loss- making and distort the market.

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Auto giant warns UK’s tough emissions mandate could force manufacturers out of market

Britain’s electric vehicle (EV) targets threaten “severe disruption” that could prompt some carmakers to pull out of the market, the European boss of Hyundai has warned. The Telegraph has the story.

Xavier Martinet, president of the carmaker’s European arm, claimed the Government’s zero emission vehicle (ZEV) mandate no longer made sense and needed to be rethought.

Without change, he said the policy could cause manufacturers to become loss-making and prompt some to stop selling both internal combustion engine (ICE) and electric cars in the UK.

Britain is Hyundai’s biggest market in Europe. UK drivers bought more than 93,000 of the marque’s cars last year.

Under the ZEV mandate, carmakers must ensure 33pc of the vehicles they sell are electric or potentially face fines of up to £12,000 per vehicle. The proportion rises gradually to 80pc by 2030, when the sale of new petrol and diesel cars will also be banned.

Some flexibilities have been built into the scheme already following concessions by Labour. But to comply with the stretching targets the industry is still having to spend around £11,000 per car on discounts, Mr Martinet said.

Many manufacturers have said they are being forced to subsidise the discounts on EVs with sales from petrol and diesel cars.

Mr Martinet told The Telegraph: “The UK market is in danger of having a severe disruption in the coming years, because if some manufacturers cannot afford or decide not to push the EV mandate, you’ll have an issue.

“And if you don’t sell EVs, you might not do even do the ICE sales. So, what will customers buy, at the end of the day? That’s a major question.”

‘Reality check’

Mr Martinet insisted Hyundai, which is Britain’s sixth-biggest car brand by sales, was meeting its own electric car targets currently.

Hyundai, which is best known for its i10 city car and Tucson SUV, recently launched the electric Inster city car, which sells for just under £24,000 and was crowned Top Gear’s “supermini of the year” in 2025.

Mr Martinet’s comments come after Vauxhall owner Stellantis claimed there was no “natural demand” for EVs without subsidies. Manufacturers faced a choice of “pay a fine, or lose money,” a Stellantis executive claimed last month.

Mr Martinet said he did not agree fully with the Stellantis claim, pointing to sales of the Inster as proof that EVs could succeed if done well. But he called for a “reality check” on the level of sales expected under the UK’s current mandate.

Read the full story here.