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.”
The UK ZEV mandate – how it works
The UK government’s Zero Emission Vehicle (ZEV) mandate targets EV stocks and will fine OEMs for non-compliance.
The industry now expects the UK BEV market share to reach 18.7% by 2024, although a strong performance in December could lift this to 19% – still below the mandatory target of 22% for the year.
Manufacturers that do not meet compliance levels or do not sell enough ZEVs face fines of GBP15,000 (USD20,000) for each non-ZEV unit sold above their mandatory limit. There is an option to buy ‘credits’ from manufacturers that exceed the share target (for example from BEV-only makers such as BYD or Tesla), but volume OEMs argue that this means they are essentially subsidizing their competitors.
The UK government has said it will talk to industry about how the ZEV mandate works – suggesting there could be some flexibility in its application to help the industry. However, it has also said it wants to stick to the overall targets as part of the UK’s net zero commitments and phase out sales of petrol and diesel engines only by 2030.
When the UK’s ZEV mandate was unveiled, the industry expected 457,000 electric cars to be registered by 2024, which should have accounted for 23.3% of all new car registrations. However, the SMMT said the latest forecast shows 94,000 fewer cars will be registered, amounting to just 363,000 with a market share of 18.7%. The situation is even worse for vans; prospects have halved to just 20,000 units expected to be registered this year, a 5.7% market share versus a 2024 ZEV mandate target of 10%.
“UK Government Advisory Industry on the Transition to ZEVs” was originally created and published by Just Auto, a brand owned by GlobalData.
The information on this site has been included in good faith for general information purposes only. It is not intended to amount to advice on which reliance should be placed and we make no representation, warranty or guarantee, express or implied, as to its accuracy or completeness. You must obtain professional or specialist advice before taking or refraining from any action on the basis of the content on our site.
