The UK government has finally published its zero-emission vehicle (ZEV) mandate, which says that by 2035 all vehicles sold will be 100 per cent electric.
The government recently revised its date for banning the sale of new petrol and diesel vehicles from 2030 to 2035.
Go deeper with GlobalData
Under the mandate, from January 2024 (about 100 days away), EVs will account for at least 22% of car makers’ overall vehicle sales, while electric vans will have a mandated target of 10%.
Mark Harper, Secretary of State for Transport, said: “The path to zero-emission vehicles announced today makes sure the route to get there is proportionate, pragmatic and realistic for families. Our mandate provides certainty for manufacturers, benefits drivers by providing more options and helps grow the economy by creating skilled jobs. We are also making it easier than ever to own an electric vehicle, from reaching record levels of charge points to providing tax relief for EV owners.”
The new ZEV mandate will remain a ‘tradable’ scheme, with manufacturers who sell more ZEVs than required able to sell some spare capacity to manufacturers that have not sold their fair share of ZEVs.
The limit for allowance purchases will be 75% of each automaker’s annual target in 2024 and 2025, falling to 25% from 2026 onwards.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataGerry Keaney, BVRLA Chief Executive, said: "The company-provided car sector is well on its way and will be fully ZEV ahead of official targets. Others face much harder transitions. Vehicle rental, the retail market, and commercial vehicles have a mountain to climb if they are to adopt zero-emission vehicles in the volumes required. Targeted financial support and incentives will play a vital role."
Vans
Ian Plummer, Commercial Director at Auto Trader, said: “When it comes to the vans mandate, the softening of the annual targets is a pragmatic step that will provide much-needed breathing room for certain manufacturers. It also gives the fleet and business sectors – the biggest van buyers – more choice while electric van technology catches up with business requirements, and electric vans become more affordable for small businesses.”
‘EU truck industry could lose up to a tenth of sales to foreign rivals’
