In a recent appearance on the Nick Ferrari Show on LBC, Vertu Motors chief Robert Forrester sounded a note of caution for the UK automotive sector, arguing that the government’s target for zero-emission vehicle (ZEV) sales presents “immense pressure” and could trigger supply disruption and market strain.
Forrester pointed specifically to the UK mandate that 33% of new vehicle sales must be fully battery-electric by 2026. He claimed the industry is still “a country mile away” from reaching that threshold. He warned that the misalignment between regulatory intent and market readiness may force manufacturers and retailers into difficult trade-offs, including restraining the supply of petrol/diesel models and effectively “rationing” new internal-combustion vehicles.
From the retailer perspective, Vertu Motors is experiencing a heightened level of cost and regulatory burden. Forrester described the situation as “the middle of a vice of taxation and regulation”, a combination of rising vehicle excise, fuel duty expectations, and the electrification agenda all conspiring to squeeze margins, inventory options and customer choice.
He said that vehicle manufacturers who fail to hit their EV quotas face fines of £12,000 per vehicle, an exposure that, according to Forrester, creates incentives for them to hold back from selling internal-combustion cars rather than shedding that penalty. “If you’re faced with a fine of £12,000 or not selling a car, and you don’t make £12,000 as a manufacturer, you probably won’t sell the car,” he said.
For the dealership sector, this could translate into a “crunch year” in 2026. Forrester pointed out that last year the industry posted the lowest level of new car sales to private customers in 25 years, even worse than during the Covid-19 business shutdowns. He believes that 2026 may prove even tougher if the march towards EVs is mishandled, customer appetite weakens, and supply issues cascade through the network of parts suppliers, manufacturers, and retailers.
Forrester urged a more calibrated approach. He cited European peers who are pacing the transition more gradually, pointing to 2035-centred timelines rather than nearer-term mandates. “If this was left to a free market, we would all end up with electric vehicles within 15 years. This is just a question of speed and pace and not destroying swathes of the industry in the meantime.”
Sources x.com cardealermagazine.co.uk
