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The UK is currently making huge strides towards its Zero Emission Vehicle (ZEV) mandate – one of the country’s most ambitious climate goals ever. But what’s actually going on with the ZEV mandate right now? Here, we’ll break it all down, looking at the latest updates and mapping out what 2025 has in store.
The ZEV mandate, in simple terms, is a new government initiative that aims to push all car manufacturers to sell more zero emission vehicles. If manufacturers fail to meet specific EV sales targets, they will face financial penalties.
It began in January 2024 with a 22% EV target for new car sales and a 10% target for vans and has now officially completed its first year of operation. The ZEV mandate is a key part of the UK government’s net zero strategy, which was set out in 2021 with the ultimate aim of getting more electric vehicles (EVs) on the road and diesel and petrol vehicles off.
The switch to all zero emission vehicles will be complete by 2035, with new petrol and diesel cars phased out by 2030.
The ZEV mandate has had a successful first year of execution, and the government is confident that no manufacturers will be required to pay fines for failing to meet targets. But it’s safe to say that in 2025, the stakes have been raised.
Vehicle manufacturers will now have to hit EV sales targets of 28% for new car sales and 16% for new vans. The government has strengthened enforcement measures, with fines for non-compliant vans doubling from £9000 to £18,000 per vehicle. Fines for car manufacturers haven’t changed, staying at £15,000 for every vehicle sold above their quota.
The Labour government has also stated that, as of February 2025, the ZEV mandate is still on track. There will be no changes to the 2035 deadline for all new cars and vans to be zero emission. The Department for Transport has confirmed that the 2030 phase-out date for petrol and diesel vehicles remains in place but has promised additional support to make sure the transition is as smooth as possible.
So far, the government has invested over £2.3 billion to help fund the transition, which has helped expand charging infrastructure across the UK – including the creation of over 70,000 public charge points. Their efforts are clearly visible in how many electric cars in the UK have been sold as the EV market share continues to climb.
Another big development has been the government’s launch of a ZEV mandate consultation on “Phasing out the sale of new petrol and diesel cars from 2030 and Support for the Zero Emission Transition.”
The consultation ran until February 18th, and its main objective was to ask for feedback on how best to support manufacturers in meeting their targets. It could change the number of vehicles manufacturers are mandated to sell, although its key focus is on fine-tuning the flexibility of the ZEV mandate and exploring extra incentives for consumers to switch to EVs.
We’ll update this with news of the the consultation’s findings as and when we receive them.
As we’ve mentioned, the ZEV mandate is essentially a sales target system. If manufacturers fail to meet these zero-emission sales targets, then they receive a fine – but that’s where it gets interesting. The government has built leeway into the ZEV mandate, giving manufacturers wiggle room to adjust to the growing demand for electric vehicles.
Car manufacturers can make up for not selling as many zero emission vehicles by cutting their CO2 emissions, and they can also shift unused CO2 allowances between vehicle types.
It’s this sort of flexibility that gives manufacturers a way to stay on track without needing to hit every sales target.
Our site Editor and resident EV expert, Paul Clarke, had this insight to share about the ZEV mandate:
“There may have been protests from some manufacturers about the ZEV mandate when it was first introduced, but it has been successful in helping to keep the UK on track with increasing EV sales. Even though the 22% target for 2024 wasn’t quite hit, the flexibilities in the system should mean that no manufacturers are fined. The increasing targets for the years ahead mean that the industry knows what’s needed and it can plan accordingly, which is really important for investment decisions.”
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