The UK’s government has had a hard time making its ZEV mandate stick. The legislation states that manufacturers must ensure at least 22% of cars sold in 2024 are powered by batteries or they’ll face fines – but we’re a long way off hitting the targets for the year.
In November 2024, electric car registrations finally hit the 22% threshold, but that figure was just for the month. The overall EV market share for 2024 is expected to be 18.7%, which doesn’t bode well for the government’s plans to increase the percentage of electric cars manufacturers are forced to sell every year until the nation goes EV-only in 2030.
Thankfully, the government has recognised the scale of the problem. The Transport Secretary, Heidi Alexander, has launched a consultation in which she’s inviting members of the automotive industry to offer their thoughts on ‘how to deliver’ the mandate.
This doesn’t mean the government is thinking of adjusting or removing the ZEV mandate – at least not yet. The Department for Transport says the consultation is ‘focused on how, not if, we reach the 2030 target’ and hopes to better understand how legislation can support the car industry through the change.
One way it aims to do this is to review the ‘flexibilities’ in the ZEV mandate. One such flexibility already exists, allowing manufacturers to sell fewer electric cars than the target if they counteract the emissions of their combustion cars in other ways. We hope further loopholes will be added to support the industry.
A big part of the consultation will also be allocated to deciding what hybrid vehicles will be allowed to remain on sale once the 2030 petrol and diesel ban comes into force. Other topics include adjusting planning legislation to make it easier to install charging points and a separate consultation on speeding up the roll out of zero-emission commercial vehicles.
Alexander commented on the opening of the consultation, saying: ‘Employing 152,000 people and adding £19 billion to our economy, the UK’s automotive industry is a huge asset to our nation — and the transition to electric is an unprecedented opportunity to attract investment, harness British innovation, and deliver growth for generations to come.
‘Yet over the last few years, our automotive industry has been stifled by a lack of certainty and direction. This government will change that.’
Mike Hawes, Chief Executive of the Society of Motor Manufacturers and Traders, said: ‘The automotive industry welcomes government’s review of both the end of sale date for cars powered solely by petrol or diesel, and possible changes to the flexibilities around the Zero Emission Vehicle Mandate. These are both critical issues for an industry that is facing significant challenges globally as it tries to decarbonise ahead of natural market demand.
‘Aside from the billions invested in new technologies and products, it has cost manufacturers in excess of £4 billion in discounting in the UK this year alone. This is unsustainable and, with the 2025 market looking under even greater pressure, it is imperative we get an urgent resolution, with a clear intent to adapt the regulation to support delivery, backed by bold incentives to stimulate demand.
‘Such action will support not only the industry, but also deliver for the economy, consumer, government and the environment.’
We’ll update you with the outcome of the consultation as soon as it concludes.
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