ZEV Policy Update: More Flexibility, Delayed Targets, and Reduced Fines
The UK Government has reaffirmed its plan to ban the sale of new petrol and diesel cars by 2030, while allowing hybrid vehicles to remain on sale until 2035. This extension applies to all hybrid technologies, including mild and plug-in hybrids.
For vans, the ban is deferred until 2035, offering operators more time to adjust if electrification across their fleets is not yet viable. Transport Minister Hasan stated the update gives manufacturers greater flexibility in what they can offer over this transition period.
Under the Zero Emission Vehicle (ZEV) mandate, 22% of new car sales had to be fully electric in 2023, rising to 28% this year. For vans, the targets were 10% in 2023, increasing to 16% in 2025.
The Department for Transport says the revised rules allow car makers to offset shortfalls across years and vehicle types, helping avoid penalties by ramping up sales of battery electric vehicles later.
Fines for failing to meet ZEV quotas will be reduced by 20% to £12,000 per car and £15,000 per van. The ability to offset non-ZEVs against ZEV targets has also been extended from 2026 to 2029. Existing CO2 test values for plug-in hybrids will remain unchanged, unlike the stricter EU standard.