Used Car Dealers Optimistic About 2026 ZEV Mandate Target

Recent research indicates that 57% of used car dealers are optimistic about meeting the 2026 Zero Emissions Vehicle (ZEV) mandate target. The findings, released in January’s Startline Used Car Tracker, surveyed 60 dealers and revealed a split in sentiment regarding the targets set by the Government.

The same survey found that 44% of dealers believe the current targets may need to be revised, while 20% think the goals for the remainder of the decade are unrealistic. Paul Burgess, chief executive of Startline Motor Finance, noted that preliminary figures suggest the 2025 ZEV mandate target was narrowly missed.

Optimism Amid Uncertainty

Burgess expressed surprise at the high level of optimism among dealers regarding the 2026 target of 33%. He remarked, “Against that backdrop, it’s perhaps a little surprising that so many dealers are feeling optimistic the 2026 target of 33% will be met.” He attributed this optimism to a recent uptick in positive sentiment towards electric vehicles among retailers.

Despite this, there remains a notable division in dealer opinion regarding the ZEV mandate. Burgess pointed out that 44% of participants in the survey believe the targets are unattainable as they currently stand and will require adjustments. The Government has announced plans to review these targets earlier than initially scheduled, moving the date from 2027 to this year.

Need for Government Support

The research highlights a significant demand for increased Government intervention in the electric vehicle market. A net 70% of dealers indicated that more support is necessary for new electric car sales, with this figure rising to 74% for the used electric vehicle sector.

Burgess emphasized the importance of supporting the used car market, stating, “The high level of support for used car market intervention revealed here is notable.” He noted that while electric vehicles tend to sell quickly, their values remain low, which could negatively impact the overall market.

The tracker also revealed that 44% of dealers see plug-in hybrids as a crucial transitional technology. Additionally, 26% of those surveyed highlighted the significance of manufacturers reintroducing hybrid and petrol drivetrains. Burgess commented, “It has perhaps become clear in the last year or two that electrification will be more of a gradual and uneven process than was first envisaged.”

As the automotive industry navigates the transition to zero emissions, the mixed sentiments from dealers reflect the broader challenges facing the market. With ongoing discussions about the future of electric vehicles, the need for firm strategies and support from the Government remains essential.