Toyota calls for greater flexibility in UK and EU emissions regulations

October 19, 2026

Toyota has called for more flexible vehicle emissions regulations in the UK and Europe, arguing that targets must reflect customer demand, market conditions and the pace of the transition to zero-emission vehicles.

As the EU develops its Automotive Package and Industrial Accelerator Act - a legislative framework designed to safeguard European manufacturing - and the UK reviews its Zero Emission Vehicle (ZEV) mandate, Toyota is urging policymakers to adopt a more pragmatic approach to decarbonisation.

The manufacturer wants the EU to move towards a "Made with Europe" policy, recognising trusted trading partners including the UK, Turkey and Japan. It argues that closer collaboration would strengthen the automotive supply chain, support investment and improve Europe’s competitiveness in the car market.

It also calls for greater flexibility around CO₂ targets, including a five-year compliance window from 2028 to 2032. For light commercial vehicles (LCVs), it proposes a 35% emissions reduction target by 2030 and 80% by 2035, alongside averaging provisions to reflect the needs of business users.

The company also wants vehicles running exclusively on eligible renewable fuels to qualify as zero-emission, while calling for fuel-cell vehicles to be temporarily excluded from localisation requirements.

In the UK, Toyota is proposing a maximum ZEV share of 50% for new cars and 40% for LCVs by 2030, with additional compliance flexibilities. It also wants the UK framework aligned more closely with the EU and a clear pathway established through to 2035.

Toyota says a realistic, consistent regulatory framework is essential to give manufacturers and suppliers the confidence to invest, while supporting the transition to lower-emission vehicles.

What does this mean for fleets? As manufacturers increasingly call for ZEV mandate flexibility, the outcome that could follow will inevitably have an impact on both the new and used vehicle marketplace.

In the past, we've seen battery electric vehicles (BEVs) heavily discounted in a bid for manufacturers to meet mandate targets, while the used market remains buoyant with strong values of popular makes and models. Toyota's proposal, if successful, has the potential to allow petrol or hybrid vehicles to be more widely available for longer, which comes as not all drivers can make the effective switch to a full EV.

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