ZEV mandate: 28% of new cars must be electric this year

The Government's Zero-Emission Vehicle (ZEV) Mandate become law in 2024. It requires all car and van makers to only sell emission-free vehicles by 2035. 

The switch to electric-vehicle-only new car sales will be enforced incrementally over the next 10 years, starting with a legal requirement for 28% of new cars sold to be pure electric this year. 

While the Government remains committed to the 2030 ban on all new petrol and diesel cars, it has relaxed the rules surrounding hybrid models. Self-charging hybrids, such as the Nissan Qashqai e-Power and Toyota Prius will be allowed to remain on sale until 2035, under new changes to the ZEV mandate announced on 7 April 2025.

In the most recent announcement, exemption from the ZEV restrictions were also announced for some small sports car brands, including Aston Martin and McLaren. These brands will not need to achieve the current target of 80% electric car sales by 2030. 

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Any car makers that aren’t able to meet these quotas could face a fine of £15,000 per car sold that isn’t compliant. In 2024, EVs only accounted for 19.6% of new car sales, which is some way short of the annual target of 22% of sales for the year. The fact that sales aren’t likely to reach the 2025 requirement of 28% of all sales has given rise to speculation that there will be further heavy discounting of EVs as car makers scramble to meet the target for the year. 

Here we explain everything you need to know about the mandate – and how it could potentially save you a lot of money on an EV. 

What is the ZEV mandate?

The ZEV Mandate is a legal requirement for car manufacturers to meet targets for new EV sales in the UK.

The Government is still finalising the targets between 2030 and 2035. However, it’s rumoured that the mandate will rise to 84% in 2031, 88% in 2032, 92% in 2033, 96% in 2034 and 100% in 2035.

If car makers exceed their EV annual sales targets, they can bank allowances for use in future years or trade them with other firms that have fallen short. In 2024, manufacturers were able to borrow up to 75% of their annual target. This will drop to 25% in 2026, with the idea being to help firms with low EV volumes in the early stages of the scheme.

If manufacturers don’t meet the sales targets, they can use any of their banked credit to comply, or they can trade allowances with other manufacturers. Otherwise, a fine of £15,000 will be issued for every non zero-emission car sold outside of the allowance. 

The scheme only applies in England, Scotland and Wales. In Northern Ireland, an interim scheme, which will retain a scaled-back version of the existing CO2 emission regulations for new cars and vans, will be implemented until the Assembly passes the ZEV Mandate legislation.

What does the ZEV mandate mean for new car buyers?

According to official figures, 19.6% of all new cars sales in 2024 were fully electric, which is some way off meeting the 22% target. And with the target rising to 28% this year, car makers are likely to have to increase discounts on EVs to encourage consumers to buy more of them. This will accelerate the current trend of discounting on electric cars.

What Car? Target Price expert, Pat Hoy says: “We've now got a situation whereby manufacturers need to sell EVs to avoid the fine, but consumers might not want them. That's where the discounts will come in, whether that’s with cash discounts, finance-related discounts or PCP APR discounts.

“It will be a difficult one to balance, because manufacturers won’t want to devalue their EVs. And if EV values do go through the floor, then that will add even more pressure to the market because that could impact depreciation.”

Which brands are likely to meet the 28% target in 2025?

Manufacturers such as MG, Polestar, Smart and Tesla are already well ahead of the 28% target, because they have majority (or fully) electric line-ups. This means that larger discounts are less likely to be available from these brands in the coming years.

Some manufacturers, such as Alfa Romeo and Dacia have only recently introduced their first EVs. However, these brands are part of larger automotive groups, which means that they can benefit from credit sharing arrangements. For instance, Dacia could borrow credit from Renault.

Other brands, such as Ford, Honda, Mazda, Toyota and Lexus, don't have this luxury, and the majority of their sales currently come from petrol, diesel or hybrid models. That means discounts could be used to increase the sales of their EVs so they can meet the target.

Another strategy manufactures can follow is to borrow from overachieving electric car sales in years ahead to avoid fines. This is what brands such as Suzuki will do, because it doesn't form part of an automotive group and it doesn't have an electric car on sale in the UK until the Suzuki e Vitara arrives in the summer of 2025.

Suzuki GB's General Manager of Sales, David Kateley, commented: "By 2027, we should be in a good position. We will still have to take a bit of a hit, but it won’t be as massive as we think. So from our perspective, it’s all about future product and over achievement", he says.

Kateley also says that hybrids and CO2 emissions have an important role to play in reaching ZEV Mandate targets. 

The number that everyone is focusing on each year is the sales target. However, there is also the CO2 target for the internal-combustion powered registrations. And because Suzuki sells lots of efficient hybrid cars, it wll actually be well under its CO2 target, which it can then use to earn credits towards the ZEV Mandate.

Are there any Government grants for buying a new electric car?

The Plug-in Car Grant (PICG) was scaled back for all zero-emission cars in June 2022. However, it is still available for certain vehicles:

• Wheelchair accessible vehicles (loan of up to 35%, capped at £2,500)

• Mopeds (up to 35%, capped at £150)

• Motorcycles (up to 35%, capped at £500)

• Small vans (up to 35%, capped at £2,500)

• Large vans (up to 20%, capped at £5,000)

Does the ZEV mandate impact vans?

The ZEV mandate also applies to the sales of new vans. However, the rate that the target increases are lower than that for new cars.

From 1 January 2025, 16% of new van sales need to be fully electric. This will then rise to 24% in 2026, 34% in 2027, 46% in 2028, 58% in 2029 and 70% in 2030.

As with the scheme for cars, the Government is still finalising the targets between 2030 and 2035. However, it’s rumoured that the mandate will rise to 76% in 2031, 82% in 2032, 88% in 2033, 94% in 2034 and 100% in 2035.

Manufacturers will again be able to bank, buy or sell credit with other companies if the targets are exceeded or missed. Otherwise, a fine of £9000 will be issued for every non zero-emission van sold outside of the allowance.

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Read more: Hybrid cars to remain on sale until 2035 >>