The UK government has said it is now seeking ideas on how to reinstate the 2030 phase-out date for new petrol-only and diesel cars and ‘make the transition to zero-emission vehicles a success’.
The consultation proposes updates to the Zero Emission Vehicle (ZEV) mandate. The mandate sets the percentage of new, zero-emission cars and vans to be sold each year until 2030.
Fines apply to OEMs based on vehicles sold that do not meet ZEV sales targets (see details below). The implementation of the Zero Emission Vehicle (ZEV) mandate has been widely criticized in the industry due to slower-than-expected demand for electric vehicles, which carries the potential for high fines.
The UK government points out that the ZEV mandate already offers a range of flexibilities to help the industry comply in a way that makes sense for them and the wider market, including selling fewer zero-emission vehicles than the main target, if they do so make up for it in other ways. ways. The consultation ‘explores the design of the flexibilities to ensure they continue to support manufacturers’.
However, the UK government appears to be sticking to the 2030 target. It says the consultation is ‘focused on how, not whether, we will achieve the 2030 target’. It said it will give the sector the opportunity to consider how current arrangements and flexibilities work, which hybrid cars could be sold alongside zero-emission models between 2030 and 2035, and what further support measures are in place to ease the transition for the industry and make business a success. consumers.
The UK’s automotive industry trade body – the SMMT – has called for more incentives to encourage the uptake of electric vehicles.
Commenting on the latest announcement of the consultation, Mike Hawes, CEO of SMMT, said: “The automotive industry welcomes the government’s review of both the end of sales date for petrol and diesel-only cars and potential changes to the flexibility surrounding the Zero Emission scheme. Vehicle mandate. These are both critical issues for a sector that faces significant challenges globally in its efforts to decarbonize the economy, ahead of natural market demand.
“Apart from the billions invested in new technologies and products, it has cost manufacturers more than £4 billion in rebates this year in Britain alone. This is unsustainable and with the market under even greater pressure in 2025, it is imperative that we get an urgent resolution, with a clear intention to adapt the regulations to support supply, backed by bold incentives to support demand stimulate. Such action will not only support the industry, but also deliver results for the economy, consumers, government and the environment.”
