Major automakers are holding off on committing to new production investments at UK factories until the British government eases its zero-emission vehicle (ZEV) mandate, which requires manufacturers to sell a growing proportion of electric cars each year through 2030. Mike Hawes, head of the Society of Motor Manufacturers and Traders (SMMT), said companies with existing UK plants are waiting for regulatory relief before greenlighting next-generation models. Business Secretary Jonathan Reynolds has signalled the government is likely to dilute the rules, as the industry faces mounting pressures from Chinese competition, US tariffs, and a 7.5% drop in UK vehicle output in the first half of 2026.