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 was just 19.6%, 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.
How is the government hoping to help to car industry go all electric?
A key focus for the consultation is to review the ‘flexibilities’ in the ZEV mandate. One such flexibility allows manufacturers to sell fewer electric cars than the target if they counteract the emissions of their combustion cars in other ways.
Every manufacturer now has a CO2 target, based on their emissions from 2021. If a manufacturer can beat their CO2 target from 2021, they can earn credits that can be used to top up their ZEV mandate compliance and help them avoid fines.
Car manufacturers are very keen to avoid fines, too, because the government will charge them £15,000 for every internal combustion engined car sold above the ZEV mandates quota.
As a result, a big part of the consultation will be allocated to deciding what hybrid vehicles will be allowed to remain on sale once the 2030 petrol and diesel ban comes into force.
Alexander also has announced she’ll adjust planning legislation and allocate more money to local councils to make it easier for private investors to install charging points. She says this change will support £6 billion worth of private investment between now and the crucial 2030 deadline. She also says she’ll launch 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.
‘The consultation is an opportunity to consider stakeholders’ preferences on technology choices and the types of vehicles permitted between 2030 and 2035 alongside ZEVs. It commits to maintaining the trajectories in the ZEV mandate while considering how the current arrangements and flexibilities are working and what steps can be taken to support domestic manufacturing and cement the UK’s position as one of the major European markets for ZEVs.’
What does the motoring industry say about the consultation?
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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Luke Wilkinson is Deputy Editor of Parkers. He has five years of experience as a car journalist, and spends his time writing news, reviews, features and advice pieces for both Parkers and its sister site CAR magazine.
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