ZEV mandate lays out pathway for sales of new electric cars

Manufacturers face stiff penalties if they fail to meet their targets

Ford Mustang Mach-E

The UK Government has announced the launch of a consultation on a zero emission vehicle (ZEV) mandate and CO2 emissions for new cars and vans.

It will force manufacturers to sell a certain proportion of electric vehicles in the lead up to the 2030 ban on the sales of new petrol and diesel cars.

The proposed minimum ZEV target trajectory for new cars sold begins at 22 percent in 2024, increasing to 80 percent in 2030, reaching 100 percent in 2035.

For vans, the trajectory begins at 10 percent in 2024, reaches 70 percent in 2030, then hits 100 percent in 2035.

If a manufacturer cannot meet these targets, the proposal suggests payments of £15,000 per non-ZEV car and £18,000 per non-ZEV van.

The UK Government says it “recognises that some vehicle manufacturers face challenges meeting targets win the initial years as they shift their business towards ZEVs.”

It’s why it will allow manufacturers to borrow a limited number of allowances from future periods if they are unable to achieve compliance from their own sales. This will be only be permitted during the initial phase of the regulation, from 2024-2026.

This flexibility is required, with Auto Trader data showing that only eight out of 50 brands had EV sales leads of more than 22 percent in the first two months of 2023.

Mike Hawes, Society of Motor Manufacturers and Traders (SMMT) chief executive, said: “While the proposals rightly reflect the sector’s diversity, late publication and lack of regulatory certainty make product planning near impossible, and the continued lack of clarity as to what technologies will be permitted beyond 2030 undermines attempts to secure investment.”

Tim Slatter, Ford of Britain boss, added: ”Ford is on an accelerated path to an all-electric vehicle portfolio and carbon neutrality by 2035, and fully supports the government’s ambition for a zero-emission future.

”The ZEV mandate is a crucial piece of the electrification puzzle that provides a vital indicator of charging infrastructure needs in the coming years. We know from our customers that the biggest barrier to uptake of electric vehicles remains the availability and ease of charging. The ZEV mandate gives a clear direction and should provide the confidence for infrastructure investors to commit and enable the future for electric vehicles on UK roads.

”With new, higher targets for van customers, it is crucial that the government’s Plug-in Van Grant is retained in early years to support businesses making the switch.”

The 56-page document can be downloaded here.

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