
UK car and van markets met their first-year Zero Emission Vehicle (ZEV) mandate targets, but growing pressure from manufacturers highlights a gap between regulatory ambition and commercial reality.
The Department for Transport’s compliance report shows both markets achieved, and in some cases exceeded, 2024 targets, which required 22% of new cars and 10% of vans to be zero emission.
The ZEV mandate applies to vehicle manufacturers rather than fleets, requiring a set percentage of the cars and vans they sell each year to be electric.
While the targets were met, this was not driven by EV sales alone. The rules allow manufacturers to earn credits by improving the efficiency of petrol and diesel vehicles, which can then be used to count towards their EV targets. They can also borrow a limited amount from future years.
In practice, this reduced the level of EV sales needed to comply, with van manufacturers using a similar approach alongside lower zero-emission uptake.
ZEV mandate yearly targets:
- 2024 targets: 22% cars, 10% vans
- 2025 targets: 28% cars, 16% vans
- 2026 targets: 33% cars, 24% vans
- 2027 targets: 52% cars, 46% vans
Manufacturers have also built up surplus credits by exceeding requirements in some areas, which can be carried forward to help meet stricter targets in future years.
At the same time, industry concerns are intensifying. The SMMT says current progress has relied on more than £10bn of discounting over the past two years, while some OEMs report that many EVs are still sold at a loss. Average discounts reached around £11,000 per vehicle last year.
EV availability is increasing, but the wider market remains unsettled as costs, demand and residual values continue to adjust.
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