UK Government Updates Zero Emission Vehicle Mandate
The UK Government has confirmed significant changes to its Zero Emission Vehicle (ZEV) mandate, following a consultation that closed in February 2024. The updated regulations aim to provide manufacturers with greater flexibility while maintaining ambitious targets for electric vehicle adoption.
Key Changes to the ZEV Mandate
- The sale of new petrol and diesel cars will be banned from 2030, while hybrids will be allowed until 2035.
- Small and micro-volume manufacturers, such as supercar brands McLaren and Aston Martin, will be exempt from the mandate targets.
- Vans with internal combustion engines will be permitted until 2035, alongside full hybrids and plug-in hybrid light commercial vehicles.
- Fines for non-compliant manufacturers will be reduced by 20% for cars and 18% for vans, from £15,000 to £12,000 and £18,000 to £15,000 respectively.
- Existing CO2 test values for plug-in hybrids will continue to be used until 2030, rather than adopting the revised Euro 6e-bis test results.
Industry Reaction
The changes have been welcomed by industry leaders, who acknowledge the need for flexibility in the face of global economic challenges and geopolitical uncertainties. Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders (SMMT), stated that the Government has ‘rightly listened to industry’ and responded to the current market dynamics.
However, both Hawes and AA president Edmund King emphasized the need for further incentives to stimulate consumer demand for electric vehicles. King described the changes as a ‘pragmatic step forward’ but stressed that more needs to be done to make EVs accessible to everyone.
Additional Flexibility Measures
The updated ZEV mandate includes several flexibility measures to help manufacturers comply with the regulations:
- Van to car credit transfer: Manufacturers can now exchange credits between their car and van fleets.
- Non-ZEV to ZEV transfer: The ability to create credits by reducing CO2 emissions from non-ZEV fleets has been extended to 2029.
- Borrowing credits: Manufacturers can ‘borrow’ credits from future years if they fail to meet targets in a particular year.
These changes aim to support the UK’s automotive industry as it navigates the transition to zero-emission vehicles, while also addressing concerns about competitiveness in the face of international tariffs.
The Government has stated that support for the car industry will be kept under review as the impact of new tariffs becomes clear. A new industrial strategy is also expected to be published in full this spring, which will further outline the Government’s plans for the sector.
