Government yet to provide clarity on ZEV mandate

Car and van makers continue to call for details on the UK’s long-overdue ZEV mandate after yesterday’s announcement on the ICE ban failed to deliver clarity.

The BBC has reported that the ZEV mandate plans will still go ahead from 2024

The mandate, essentially a quota on how many fully electric cars and vans that automakers must sell in the UK, is due to come into place from 2024.

It’s seen as critical to OEM investment in EVs, as well as helping to drive driver take-up and, as a result, the supply of second-hand EVs.

However, while the UK government made a commitment in 2021’s Net Zero Strategy that it would introduce such a mandate from 2024, and opened a consultation last year and a further consultation earlier this year, it’s all gone quiet since.

Now, following yesterday’s delay to the 2030 ban on the sale of conventional petrol and diesel new cars/vans, there has been considerable speculation over the ZEV mandate and whether it will remain in place.

The BBC – which was the first to hear of the Government’s green policy shifts announced yesterday – reported today that the ZEV mandate plans will still go ahead.

It says that Business Secretary Kemi Badenoch has confirmed the mandate will come into effect as expected. According to the BBC, the targets set out in the last consultation will be used – these will require car firms to make sure 22% of the units sold must be electric in 2024, increasing to 80% in 2030 and reaching 100% in 2035.

The BBC didn’t specify the van quotas but the proposed minimum ZEV target trajectory in the consultation began at 10% in 2024, reaching 70% in 2030 on the way to 100% in 2035.

The BBC also said that the suggested fines in the consultation will be used; these will be set at £15,000 per vehicle, or the manufacturer will have to buy a surplus credit from a company that has sold lots of electric vehicles. However, a firm could claim back penalties if it surpasses the quota in future.

The Society of Motor Manufacturers (SMMT) also said that the Government has confirmed that details of the mandate will be published shortly and it will take effect in January 2024.

Despite the Prime Minister having rowed back on the 2030 ICE ban, Mike Hawes, SMMT chief executive, said “the automotive industry’s commitment to a zero-emission new car and van market remains unchanged” – and he added that the mandate would be “the single biggest mechanism to deliver net zero”.

Cox Automotive has also said the mandate will prove a key tool in the shift to EVs. Philip Nothard, insight and strategy director, said the ICE ban deadline was only one factor influencing the high-speed transition to EVs and added that the ZEV mandate was “arguably a greater influence”.

However, the BBC said it had spoken with one large manufacturer, which commented that forcing firms to hit the target on electric vehicle sales, while pushing back the ban on new petrol and diesel car sales, would make it harder for firms to sell the electric ones.

The Department for Transport hasn’t confirmed any details of the mandate; a spokesperson told Fleet World: “Further details on the ZEV mandate will be announced in due course.”

For more of the latest industry news, click here.

Natalie Middleton

Natalie has worked as a fleet journalist for over 20 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day.