Vertu Motors, a leading London-listed car dealership, has urged the government to accelerate its review of the Zero Emission Vehicle (ZEV) mandate, which it says is disrupting the car sales market. The company reported an 18 per cent drop in pre-tax profit to £20 million for the year to February 2026, attributing the decline partly to the scheme's impact on margins and volumes.
ZEV Mandate Creates 'Intense Pressure'
The ZEV mandate requires carmakers to sell an increasing number of electric vehicles each year or face substantial fines. Vertu Motors stated that the mandate is distorting volumes, margins, and channel mix for new cars and commercial vehicles, alongside elevated discounting and potential supply constraints for non-BEV models. The dealership called on the government to bring forward its planned review from 2027 to 2026, warning that the ratcheting of targets creates intense pressure on the industry.
Impact on Light Commercial Vehicles
Vertu Motors highlighted particular risks for the Light Commercial Vehicle (LCV) market, including vans. Carmakers missing EV van sales targets face fines of £15,000 per van, compared to £12,000 per car. The company said the mandate is certain to continue disrupting the LCV market as manufacturers strive to avoid penalties.
Government Review Timeline
In December, the government slightly accelerated the review process, moving the start of stakeholder engagement to this year, but the final report is not expected until 2027. A government spokesperson reiterated that zero-emission vehicles benefit family finances and the environment, saving typical drivers up to £1,500 annually on fuel. They emphasised the transition to EVs is crucial for jobs, growth, air quality, and energy security.
Additional Profit Hit from Cyber-Attack
Vertu Motors also suffered losses from a cyber-attack at Jaguar Land Rover, which disrupted vehicle supply. The company received a £3.4 million insurance payout but reported total losses of £3.9 million from the incident.
