The Government has introduced a raft of changes to its zero emission vehicle (ZEV) mandate, with phase out dates for new petrol and diesel vans confirmed.
It is ending the sale of new petrol and diesel cars from 2030, with hybrids to be sold until 2035, while small manufacturers will be exempt from the ban.
Vans with an internal combustion engine (ICE) will be allowed to be sold until 2035, alongside full hybrids and plug-in hybrid light commercial vehicles (LCVs).
Read the full details of the ZEV mandate changes here.
There has been a mixed reaction from the industry, with Tom Middleditch, head of electric mobility at Europcar Mobility Group UK, saying the Government announcement provided the automotive sector with some “much-needed clarity” at a very “challenging time”.
He added: “As one of the biggest customers of new vehicles, the rental industry needs a resilient and secure manufacturing sector.
“However, there is a concern that by reducing the pressure on manufacturers, businesses and private motorists will be less motivated to make the switch to zero tailpipe emissions.
“Sadly, additional credits for EVs registered on rental fleets was not part of yesterday’s announcement even though rental operators could play a more fundamental role, delivering an effective alternative to the bigger commitment of leasing or purchase for businesses and private motorists.
“Nor did the Government’s plans include any measures to reduce the cost of public charging or any initiatives to educate motorists on the benefits and ease of electric motoring, both of which are critical to growing the electric vehicle parc.
“The Government clearly has a challenging task on its hands right now, but it is vital that the role electric vehicles must play in reducing carbon emissions is not forgotten.”
Changes to the ZEV mandate “don’t go far enough” to resolve fleet issues with electric vans, according to Peter Golding, managing director at the fleet software specialist FleetCheck.
He explained: “The fundamental issues that fleets tell us they are facing when it comes to electric van adoption are that the available vehicles are too expensive, don’t have adequate capacity for their needs, and lack sufficient range.
“The moves that the Government has made don’t go far enough towards tackling these core problems.
“In creating a situation where diesel and hybrid vans can stay on sale until 2035, they’re potentially just giving fleet operators an excuse to continue using ICE vehicles and ignore the issue for a few more years.”
He added: “We are likely to see electric vans become more suitable for fleet use over time and almost every month, we see incremental improvements to range and payloads, while prices are becoming more attainable.
“However, whether this is happening at a pace sufficient to overcome operator objections to these vehicles is very much open to question.
“In the company car sector, successful adoption has been powered by taxation advantages – especially zero or very low benefit in kind.
“There is nothing resembling the same level of assistance in the electric van market and, as a result, no real impetus for change. This is the area where the Government needs to act.
“We speak to fleet operators almost every day who are unimpressed by the prospect of electric vans to the extent that their current plan is to operate their existing diesel vans for as long as possible. More needs to be done to change this mindset.”
Sue Robinson, CEO of the National Franchised Dealers Association (NFDA), which represents franchised car and commercial vehicle retailers in the UK, says that the previous iteration of the ZEV mandate was causing significant harm to the UK automotive sector.
“We therefore welcome the changes made today as a step in the right direction for the UK automotive sector, however, it is vital that more incentives are available to encourage the consumer to move to EVs,” she said.
“The electric vehicle targets remain in place and the fines still remain too high for manufacturers.
“The UK remains the most aggressive regime for the EV transition and we would want the UK Government to align with the rest of Europe, in order to make our market as competitive as possible in a rapidly changing global marketplace.”
Thom Groot, CEO of The Electric Car Scheme, was pleased to see that the Government's changes to the ZEV mandate has not meant a “watering down of the target”.
Instead, he said: “What we are seeing is a pragmatic and understandable response to the global shock of Trump's tariffs, while providing a positive signal of intent to the EV industry.
“After all, it was only on Friday that the figures were released which showed a huge jump in the number of battery electric vehicles registered in the UK, the demand is there.
“By supporting EV uptake and adoption, as well as maintaining our ambitious targets, these tariffs could provide a boost for the UK's ZEV targets.
“Many manufacturers from the EU and China will be looking to other markets, potentially bringing down upfront costs, which we know is the biggest barrier to purchase. 57% of all new battery electric vehicle registrations come from China, we should be embracing this technology input, not shying away from it.”
Chris Joyce, managing director of Sogo mobility, said: “The extension provides businesses with crucial additional time to develop and implement effective strategies for integrating electric vehicles into their fleets, while managing the demands of a turbulent economy.
“The extension also acknowledges the current state of the UK’s electric vehicle infrastructure, offering a realistic timeframe for necessary developments to support a broader range of zero-emission vehicles.
"However, we’d like to see investment in the UK’s charging infrastructure go further, which is essential to accelerating the pace of adoption for BEVs.
“For wider adoption to be realistic, we must address the imbalance between those who can charge at home and those forced to use the public network.
“By reducing fines for manufacturers unable to meet initial targets and permitting greater flexibility in balancing annual sales requirements, the Government supports a more adaptable environment for the automotive industry.
“Overall, these measures will deliver a smoother, more sustainable shift towards electrification within the fleet sector.”
Warren Philips, chair of EVA England, says that for drivers to consider switching to electric they need clarity and certainty, and it is “encouraging” to see the Government confirm no new petrol or diesel cars will be sold from 2030.
“These targets are an essential roadmap to help drivers plan ahead,” he added. “The transition will not take hold on its own however and it is disappointing no additional measures were included today for drivers who, similarly to car manufacturers, need some support to make the switch.
“We need Government input to tackle high EV upfront costs in the short term and to help more households access charging affordably, especially for those who can't easily plug in at home.
“Failing to tackle prevailing barriers to uptake will scupper the Government's rightly ambitious targets to move away from petrol and diesel this decade.
“We look forward to working with the Government on its Industrial Strategy and beyond to ensure these essential measures are considered and the transition to electric is shaped with drivers' needs in mind.”
Dominic Phinn, head of transport at Climate Group, said: “Introducing flexibilities to legislation that is clearly doing its job confuses the market and hampers the roll-out of infrastructure.
“The UK's ZEV mandate is a global success story which turned the UK into a leader in the transition of road transport.
“If we want to keep it that way, the Government should bring together the energy, charging, and public sector, together with the car industry, to speed up, not slow down, the UK’s charging and grid infrastructure.
“A competitive car industry will inevitably be driven by confident EV leaders, not by those asking for ever more flexibilities to a framework that’s designed to help them along.”
Christopher Thorneycroft-Smith, co-founder of Aegis Energy, says that the announcement will have “wide-reaching effects”.
“We’re pleased that Government remains committed to the 2030 phase out of new petrol and diesel cars, while listening to industry concerns to ensure the transition remains as flexible and commercially viable as possible,” he said.
“Despite the relaxation of certain regulations announced today, we’re confident that van fleets will continue to electrify at pace due to the incredibly strong commercial and economic case for investing in the transition.
“However, we need to ensure that the UK’s infrastructure matches this. Charging infrastructure for cars is already rapidly expanding, and there’s strong momentum behind the rollout of specialist sites for vans.
“But to keep this momentum going and help us go further and faster, we need policy that provides clarity, direction and certainty for the market and investors.
“We look forward to seeing details around the promised supportive measures to help drivers switch which will help remove any uncertainty and allow us to accelerate the rollout of necessary infrastructure.
“We would also welcome further clarity on how the government plans to continue supporting the development of vital ‘transition fuels’ such as hydrotreated vegetable oil (HVO), hydrogen, and bio-CNG.”
Matthew Adams. head of transport and innovation at the Renewable Energy Association (REA), however, says that the Government’s ZEV mandate measures are “disastrous for the environment and the charging sector”.
“With the Government saying in December that real world emissions for plug-in hybrids are 243% higher than previously estimated it is clear that a decision to allow their sale until 2035 does not benefit the environment, consumers or the air they breathe,” he said.
“Meanwhile the strengthening of flexibilities mean there is now more uncertainty than ever over how many EVs will actually be sold each year.
“This means that we risk seeing the Government make further concessions when they have to announce the fixed 2031-35 sales targets.
“Investors in the charging sector are watching. This is a terrible day for the environment, the charging sector and consumers.”
Dan Caesar, CEO of Electric Vehicles UK, said: “In uncertain times for the automotive industry, there are two certainties: China is set to cement itself as the biggest car exporting country in the world, and vehicles with plugs will dominate market share from 2030 onwards.
“While there’s some cautious reasons to be optimistic about the UK’s trajectory, and its ZEV mandate, its dilution is in stark contrast to the accelerating ambition of the Chinese and others. UK-based automakers need to fully embrace battery electric or be significantly diminished in time, running the risk of continued job losses.”
Quentin Willson, founder EV advocacy group FairCharge and Electric Vehicles UK advisory board member, added: “We understand the pressure British car makers face and welcome the Government’s declaration of support.
“While we don’t agree that hybrids mainly powered by a combustion engine should be included in the ZEV mandate until 2035, we do understand the reasons why, along with increased flexibilities until 2029.
“What we do want to highlight very clearly is the Government’s recognition that Britain is now a major player in the global electric car sector and that there are tremendous opportunities to create GDP, skills, jobs and economic activity.
“We have been saying this for years, but for Number 10 to now declare that this is a critical moment in Britain’s ambitions to become one of the most successful and creative EV markets in the world is a mighty step forward.”
Russell Olive, UK director at charging management software company Vaylens, said: “From a macro perspective, businesses running EV fleets, whether that’s delivery vans, logistics vehicles or company cars, may not be on the frontline of trade disputes, but they’ll still feel the effects.
“And with EV costs rising and model availability increasingly shaped by global trade tensions, stable, scalable infrastructure will be critical to maintaining fleet EV momentum.
“Extending the hybrid sales window may ease short-term pressures, but long-term challenges remain: for example, how do we streamline access, reimbursement and data management across all charging scenarios?
“That’s why continued investment in reliable, easy-to-manage charging systems, from depot to home to public is essential to keep businesses committed to electrification, regardless of what happens at the factory gate.”
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