UK Softens the ZEV Mandate

Hope for petrolheads? Or too little, too late?

So then – the UK Government did blink. Slightly. If you’ve been following the Zero Emission Vehicle (ZEV) Mandate saga, you’ll know that the government has been under pressure from both industry and motorists. And now, as of 9 April 2025, they’ve announced a set of updates that – while not exactly revolutionary – do soften the blow. A bit. Kind of. Maybe.

But let’s be clear – they haven’t scrapped the ZEV Mandate. That was never really on the cards. However, these changes might just buy a little more time for carmakers, dealers, and drivers who aren’t quite ready to go fully electric. Let’s break it down.

What’s the ZEV Mandate Again?

In case you’ve missed the plot, the ZEV Mandate (also officially called the Electric Vehicle Trading Scheme) requires a certain percentage of new car sales from each manufacturer to be zero-emission – i.e., fully electric – each year, climbing to 100% by 2035.

Here’s how it ramps up:

• 22% in 2024
• 28% in 2025
• 33% in 2026
• And so on, till 100% in 2035

If a manufacturer fails to meet these targets, they’re hit with hefty fines – £15,000 per car, to be precise (or £18,000 for vans). Ouch.

What’s Actually Changed Now?

This is where it gets interesting. While the targets remain unchanged – yes, still 28% this year, despite many thinking that was optimistic – the government has added some wiggle room behind the scenes.

1. Credit Banking and Borrowing Extended

Manufacturers can now:

• Bank credits if they exceed their EV sales targets this year
• Borrow credits from future years if they fall short now

That borrowing option has been extended up to 2029. So if you don’t hit 28% this year, you can tap into your future 2026–2029 numbers – assuming, of course, you’ll sell more EVs later.

It’s basically Monopoly money for carmakers. Or EV karma, if you like.

2. Fines Reduced

The fine has dropped from £15,000 to £12,000 per car, and for vans, it’s now £15,000 instead of £18,000.

Still eye-watering, but slightly less punitive. More importantly, it reduces the risk of those fines being passed onto us in the form of higher car prices.

3. Hybrids to 2035 – All of Them?

Now, this bit had me scratching my head – because I thought plug-in hybrids were already allowed till 2035. But this update seems to be blurring the definition of hybrid.

It now appears that all types of hybrids – including mild hybrids – might be allowed till 2035.

If true, that’s a big deal.

Why? Because mild hybrids are basically conventional petrol cars with a small electric motor for start-stop systems and minor boosts. Many of them come with manual gearboxes. So if these are included, we’re potentially looking at manual petrol cars remaining on sale till 2035.

That is nothing short of a miracle for petrolheads.

Why This Matters

This shake-up could be a lifeline for small and mid-size carmakers – think Suzuki, Subaru, Mazda – who don’t yet have strong EV line-ups. Instead of being punished or priced out of the market, they now have a chance to balance things out over time.

It also helps legacy manufacturers who’ve been rushing EVs to market before they’re ready. With the new flexibility, they can spend more time developing better electric cars, instead of just ticking regulatory boxes.

And for car buyers?

It means more choice for longer. If you’re not ready to switch to an EV – maybe you can’t charge at home, maybe public chargers are unreliable or pricey, or maybe you just enjoy the feel of a petrol engine – this keeps the door open just a bit longer.

But Did They Go Far Enough?

Honestly? I don’t think so.

The targets should’ve been eased in the early years – start slower, build up later. Instead, they’ve just shifted things around under the bonnet without actually adjusting the numbers.

Yes, the pressure’s reduced slightly, but it’s still there. Carmakers are now essentially borrowing from their future selves – which could catch up with them a few years down the line.

They’ve moved the goal, but not the goalposts!

My Take: Scrap the ZEV Mandate Entirely

I know it’s controversial, but here’s my position – the ZEV Mandate should be dumped altogether.

Why? Because the market is already transitioning naturally. EVs are getting better, cheaper, and more desirable. More people are choosing them on merit – not because of mandates.

Let EVs stand on their own four wheels. If they’re truly the future, they’ll win people over anyway.

And for the rest of us – give us the freedom to choose. Let us have an EV for daily use and an ICE car for the weekend. Or just stick with petrol if it suits our lifestyle. This isn’t about resisting change – it’s about defending choice.

Petrol, diesel, e-fuels – there are still viable alternatives. And with tech improving across the board, we could see ICE cars thriving well into the 2040s.

Final Thoughts

So, yes – the ZEV Mandate just got a bit more palatable. It’s not a U-turn, but it’s definitely a bit of a sidestep. It’ll help the motor trade. It might even keep some ICE models on sale longer than we thought.

But it doesn’t solve the core issue: mandating a transition when it could be led by innovation and consumer demand.

The good news? For now, the petrolheads among us can breathe a little easier.

What do you think? Do you agree with the government’s move? Should they have gone further? Or is it time to scrap the mandate altogether? Sound off in the comments – and don’t forget to share this post with your fellow car lovers!

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