Under the updated mandate, car manufacturers are now required to ensure that 28% of their new car sales are electric vehicles (EVs) by 2025, with this target escalating to 80% by 2030. This marks a substantial increase from the previous requirement of 22% by 2024. The previous government had extended the deadline for the complete phase-out of new petrol and diesel cars to 2035, allowing the sale of hybrid vehicles until that time. This provided manufacturers and consumers with a longer transition period to adapt to the shift towards electric mobility.

To further support manufacturers in meeting these ambitious targets, the government has reduced the fines for failing to meet annual quotas from £15,000 to £12,000 per non-compliant vehicle. Moreover, penalties for missing annual targets will be paused until 2030, offering companies additional time to align their production and sales strategies with the mandate’s requirements.

The automotive industry has expressed mixed reactions to these changes. While some manufacturers appreciate the added flexibility, others argue that the adjustments do not sufficiently address the economic pressures exacerbated by recent international developments. Notably, U.S. President Donald Trump’s administration has imposed a 25% tariff on foreign-built cars, significantly impacting British car exports. Industry leaders are calling for more robust support measures to mitigate these challenges and sustain the competitiveness of UK car manufacturers in the global market.

Environmental groups have raised concerns that extending the deadline for phasing out internal combustion engine vehicles could hinder the UK’s progress towards its climate goals. They emphasise the importance of maintaining momentum in the transition to zero-emission vehicles to achieve the nation’s net-zero targets. The government, however, maintains that the revised mandate strikes a balance between economic realities and environmental commitments, ensuring a pragmatic approach to the UK’s automotive future.

As the UK navigates these complex challenges, the effectiveness of the updated ZEV mandate in promoting electric vehicle adoption and supporting the domestic automotive industry remains to be seen.

References:

Carmakers demand support from Starmer to survive Trump tariffs: https://www.thetimes.co.uk/article/carmakers-demand-more-help-from-starmer-to-survive-trumps-tariffs-pvb099w9q?
Should you still buy an EV: https://www.thetimes.co.uk/article/is-it-worth-buying-ev-electric-car-db6k58pq2?
Government invites car makers to help reshape ZEV mandate: https://www.businesstelegraph.co.uk/government-invites-car-makers-to-help-reshape-zev-mandate/?
Goverenment supports manufacturors with amendment to ZEV mandate: https://www.edie.net/government-amends-zev-mandate-to-support-manufacturers/?utm_medium=email&utm_campaign=edie_daily_news_alert_08-04-2025&utm_content=edie_daily_news_alert_08-04-2025+CID_e357daeae10dfd8baced8cfe21aad4f1&utm_source=campaign%20monitor&utm_term=Read%20more
Supporting the ZEV transition: https://www.gov.uk/government/consultations/phasing-out-sales-of-new-petrol-and-diesel-cars-from-2030-and-supporting-the-zev-transition/outcome/phasing-out-sales-of-new-petrol-and-diesel-cars-from-2030-and-supporting-the-zev-transition-summary-of-responses-and-joint-government-response#:~:text=ZEV%20Mandate,-A%20series%20of&text=Existing%20borrowing%20mechanism%20will%20be,for%20both%20cars%20and%20vans.
Government to review but maintain ZEV mandate but keep 2030 deadline: https://www.fleetnews.co.uk/news/industry-warns-against-potential-watering-down-of-zev-mandate