The government has introduced recent changes to its zero-emission vehicle mandate, extending the phase out date for hybrids and increased flexibility around manufacturer targets.
What is the ZEV mandate?
The Zero Emission Vehicle (ZEV) mandate is a UK government policy designed to support and accelerate the transition to electric vehicles. It sets annual targets for manufacturers which requires a certain percentage of new car and van sales to be zero-emission.
What are the recent ZEV mandate changes?
- Vans with an internal combustion engine (ICE) will be allowed to be sold until 2035.
- Full hybrid and plug-in hybrid cars and vans will also be allowed to be sold until 2035.
- Small volume manufacturers will be exempt from the 2035 hybrid requirements.
- Fine levels reduced by £3,000 from 2025 from £15,000 to £12,000 (20% reduction) for cars, and from £18,000 to £15,000 (18% reduction) for vans.
- Manufacturers who build both cars and vans can transfer credits between both. Should a manufacturer overachieve against the car targets but under-deliver with vans, it can transfer those excess car credits to its vans to achieve compliance with the ZEV Mandate.
- Carmakers who were unable to sell enough EVs due to their product ranges were able to bank credits for future years, as long as they demonstrated CO2 emissions across their fleet were being cut to 2021 levels. This flexibility was due to end in 2026, but it will now be extended to 2029.
There are however no new incentives to support the sales of new or used EVs.
Steve Franklin, Commercial Director, reflected on the recent updates
“Whilst relaxing the ZEV targets relieves some pressure on the automotive industry facing a 25% tariff on exports to its second largest market, key barriers to EV adoption must still be addressed with urgency if we are to achieve the adoption levels required.
Our recent research shows that charging infrastructure remains a significant concern for customers considering EVs, with 83% citing the lack of charging points as a major barrier for adoption. We welcome the commitment in the government’s new industrial strategy to continue to improve charging infrastructure as the government must continue its efforts in supporting the update of EVs if we are to meet the 2035 ICE ban.”