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The SMMT calls for a revised approach to the EV transition
As battery and energy costs increase, is now the time for the UK to reassess its zero emission plans?
Words by: Catherine Kent
Published on 12 March 2026 | 0 min read
The Society of Motor Manufacturers and Traders (SMMT) is calling for a new approach to the electric transition in the wake of unprecedented rises in battery and energy costs since legislation was put in place.
Whilst in the UK electric vehicles have the highest market share of any major European market, according to the SMMT much of the demand has been driven by unsustainable manufacturer discounts equating to as much £10 billion over the past two years. Last year new electric cars accounted for 23.4 per cent of new registrations, however this fell short of the 28 per cent ZEV mandate requirement. Under current legislation, the proportion of new zero emission vehicles sold must rise considerably every year until 2035 when all new cars and vans will need to be zero emission. Yet the SMMT believes these targets now look overly optimistic and the UK should follow the lead of the EU and reassess its plans. In a statement Mike Hawes, SMMT Chief Executive, said, “The UK’s EV transition pathway was conceived with the best of intentions – but the assumptions behind it have proved over-ambitious. A landscape which once looked solid has turned out to be quicksand. Recognising the world of 2026 is not the one envisaged five years ago is not a retreat from ambition; it is a necessary step to achieving it. We need an urgent review that reflects today’s realities, that delivers decarbonisation not deindustrialisation and offers consumers the choice they have always expected.” Today there are around 160 electric car models on offer giving buyers an ever-increasing choice, but affordability remains is a key factor in making the switch. The SMMT says global events have resulted in battery costs rising 30 per cent more than anticipated while energy costs have risen by 80 per cent, but there is hope. We are starting to see the gap between EVs and equivalent petrol or diesel alternatives starting to close. In March of this year new electric cars were on average 15 per cent more expensive than internal combustion, yet just two years ago the difference was 34 per cent. At a vehicle level six of the 10 best-selling electric models in January and February 2026 had a recommended retail price which was either cheaper or within 10 per cent of a comparable petrol or diesel model. Meanwhile, since the launch of the government’s Electric Car Grant, interest in electric vehicles on Autotrader has increased by four percentage points and in March so far a quarter of all new car leads have gone to electric cars. This strongly suggests buyers are interested in making the switch if the price is right, though there is still a long way to go in order to reach the current mandated targets.
Whilst in the UK electric vehicles have the highest market share of any major European market, according to the SMMT much of the demand has been driven by unsustainable manufacturer discounts equating to as much £10 billion over the past two years. Last year new electric cars accounted for 23.4 per cent of new registrations, however this fell short of the 28 per cent ZEV mandate requirement. Under current legislation, the proportion of new zero emission vehicles sold must rise considerably every year until 2035 when all new cars and vans will need to be zero emission. Yet the SMMT believes these targets now look overly optimistic and the UK should follow the lead of the EU and reassess its plans. In a statement Mike Hawes, SMMT Chief Executive, said, “The UK’s EV transition pathway was conceived with the best of intentions – but the assumptions behind it have proved over-ambitious. A landscape which once looked solid has turned out to be quicksand. Recognising the world of 2026 is not the one envisaged five years ago is not a retreat from ambition; it is a necessary step to achieving it. We need an urgent review that reflects today’s realities, that delivers decarbonisation not deindustrialisation and offers consumers the choice they have always expected.” Today there are around 160 electric car models on offer giving buyers an ever-increasing choice, but affordability remains is a key factor in making the switch. The SMMT says global events have resulted in battery costs rising 30 per cent more than anticipated while energy costs have risen by 80 per cent, but there is hope. We are starting to see the gap between EVs and equivalent petrol or diesel alternatives starting to close. In March of this year new electric cars were on average 15 per cent more expensive than internal combustion, yet just two years ago the difference was 34 per cent. At a vehicle level six of the 10 best-selling electric models in January and February 2026 had a recommended retail price which was either cheaper or within 10 per cent of a comparable petrol or diesel model. Meanwhile, since the launch of the government’s Electric Car Grant, interest in electric vehicles on Autotrader has increased by four percentage points and in March so far a quarter of all new car leads have gone to electric cars. This strongly suggests buyers are interested in making the switch if the price is right, though there is still a long way to go in order to reach the current mandated targets.