The much-awaited consultation on the UK’s zero emission vehicle mandate has opened, giving the automotive and charging industries the chance to have their say on the ZEV transition by the end of the decade.

The consultation explores current ZEV mandate flexibilities, rules for hybrid cars and any further support measures

Launched after months of warnings from carmakers of “irreversible damage” from the EV rules and Stellantis’ plans to close the 120-year-old Luton plant, the consultation proposes updates to the mandate – but the Government has stressed that work will explore “how, not if” the UK meets the 2030 petrol and diesel car phase-out reinstated by Labour.

The consultation will give the sector the opportunity to consider how the current arrangements and flexibilities are working, which hybrid cars can be sold alongside zero-emission models between 2030 and 2035, and any further support measures to help make the transition a success for industry and consumers.

The ZEV mandate is the joint responsibility of the UK government, the Department for Infrastructure in Northern Ireland, the Scottish government and the Welsh government.

The mandate sets out the percentage of new zero emission cars and vans that manufacturers will be required to sell each year up to 2030. This is set at 22% of all new cars sold and 10% for vans in 2024, rising to 28% for cars (16% for vans) in 2025, with a potential fine of £15,000 per non-EV sold. However, vehicle makers can also comply with the mandate by reducing CO2 emissions from petrol and diesel sales, borrowing credits from future targets, and purchasing credits from other carmakers through “flexibilities”.

The consultation explores the design of the flexibilities to ensure they continue to support manufacturers.

In the foreword to the consultation, the Government stressed that “the UK automotive industry already employs over 152,000 people, is our most valuable exported good, and adds £19bn to our economy”.

The DfT added that EVs are also cheaper to own and drive than ever, and can run from as little as 2p per mile. Industry research also shows that using an electric vehicle could save people up to £750 a year in running costs if they’re charged at home compared to using petrol and diesel cars.

The consultation runs for eight weeks and covers two parts. The first looks at restoring the phase-out date for the sale of new cars that rely solely on internal combustion engines: a Labour manifesto commitment, after the previous UK government pushed back the phase out date to 2035. It seeks views on which cars can be sold alongside zero-emission vehicles from 2030, e.g. full hybrids and plug-in hybrids.

The consultation will also consider the UK’s approach for vans, small volume manufacturers, and seek broad views from stakeholders on appropriate demand-side support measures that may be needed to support the transition.

The second part looks at technical measures to amend the ZEV mandate without compromising the overall trajectory, certainty, or carbon savings of the regulations. It will also seek views on whether the current time-limited ZEV mandate flexibilities are sufficient. This part relates to devolved policy that is the joint responsibility of the UK government, the Department for Infrastructure in Northern Ireland, the Scottish government, and the Welsh government.

The Government has also launched a separate consultation on whether the UK can reduce barriers to roll out more zero-emission vans. The proposals in this consultation relate to regulations for zero-emission vehicles currently falling under the 4.25-tonne derogation and seek views on transferring annual vehicle testing to the MOT network, amending annual testing schedules so their first test is after three years from first registration (and annually thereafter) and removing such vehicles from the requirements for tachograph use, the assimilated drivers’ hours rules and specific road transport working time rules when used within Britain.

This follows a previous OZEV consultation under the last government and concerted calls for change from industry bodies including the Association of Fleet Professionals.

On speed limiters, the DfT is not proposing any changes at this stage but is seeking evidence about the effects this requirement has on zero-emission vans of 3.5 tonnes to 4.25 tonnes, and if there are any benefits to removing the requirement, or safety benefits to keeping the requirement for speed limiters in place.

The consultation is part of a wider push to make it easier and cheaper for drivers to charge their electric cars.

The UK government will also change planning legislation to provide additional flexibility in England through permitted development rights when installing off-street electric vehicle charge points. The Government will also amend legislation to allow charge point installers to use street works permits instead of licences to make it easier and quicker to install chargers, and to apply for these online using the DfT’s Street Manager digital service for planning and managing works.

The results of a review will also be published on how to improve grid connections for charge points, increasing cohesion, cooperation and communication across the industry. Local councils will continue to be supported in their charging projects with resource and new guidance.

Transport Secretary Heidi Alexander said: “Employing 152,000 people and adding £19bn to our economy, the UK’s automotive industry is a huge asset to our nation – and the transition to electric is an unprecedented opportunity to attract investment, harness British innovation, and deliver growth for generations to come.

“Yet over the last few years, our automotive industry has been stifled by a lack of certainty and direction. This government will change that.

“Drivers are already embracing EVs faster than ever, with one in four new cars sold in November electric. Today’s measures will help us capitalise on the clean energy transition to support thousands of jobs, make the UK a clean energy superpower and rebuild Britain.”

Business and Trade Secretary Jonathan Reynolds – who said last month that he was “profoundly concerned” by the current state of the market – added: “There is no route to net zero without backing British industries and workers. There are huge advantages for British industry and we must make sure decarbonisation creates jobs and opportunities.

“We are steadfast in our mission to help our world-leading automotive industry thrive, and this consultation will look at how we can support manufacturers, investors, and the wider industry to reach their targets.”

Industry reaction

Toby Poston, incoming chief executive at the BVRLA

“It has been a tough year for [the] automotive industry, which has spent billions of pounds underpinning the ZEV transition – funding huge discounts on new cars and taking a massive hit on used vehicle depreciation.

Toby Poston, incoming chief executive at the BVRLA

“This consultation gives us a valuable opportunity to realign the aims of the mandate with the realities being seen in the market today.

“Today’s announcement provides some festive cheer with the prospect of more certainty on hybrid vehicles, potential extra-flexibilities for OEMs struggling to hit the targets and much-needed action on charging infrastructure installation and ZEV van pain-points.

“The current phase-out and ZEV mandate targets are at major risk unless the government delivers more support and incentives to drive demand. Money is tight, but the Labour Government, which inherited these plans, is open to ideas.”

Vicky Read, CEO of ChargeUK

“We welcome the publication of the ZEV mandate consultation, which we hope will bring certainty to the EV and charging sectors after a destabilising few months, during which the foundations of the UK’s EV policy have been called into question.

Vicky Read, ChargeUK CEO

“Having committed to invest £6bn by 2030, ChargeUK’s members are putting a new public charger in the ground every 25 minutes, with the National Audit Office recently confirming the sector is currently on track to deliver the charging required for 2030.

“ChargeUK has been vocal in its assertion that billions of this investment, as well as the significant progress made in the charging rollout, will be put at risk should the ZEV mandate be weakened.

“As the consultation finally gets underway, we call on the Government to hold its nerve and commit to a policy approach that combines ambitious EV sales targets with bold measures to help drivers make the switch. This will enable a healthy flow of investment into our sector and ensure we can stay on track to deliver the chargers needed for the EV transition.

“ChargeUK also welcomes the announcement today of significant measures related to grid connections, planning and permitting. In combination with a strong ZEV mandate, these measures will make it easier for our members to further accelerate charge point deployment.”

Mike Hawes, SMMT chief executive

“The automotive industry welcomes government’s review of both the end-of-sale date for cars powered solely by petrol or diesel, and possible changes to the flexibilities around the ZEV mandate. These are both critical issues for an industry that is facing significant challenges globally as it tries to decarbonise ahead of natural market demand.

“Aside from the billions invested in new technologies and products, it has cost manufacturers in excess of £4bn  in discounting in the UK this year alone. This is unsustainable and, with the 2025 market looking under even greater pressure, it is imperative we get an urgent resolution, with a clear intent to adapt the regulation to support delivery, backed by bold incentives to stimulate demand. Such action will support not only the industry, but also deliver for the economy, consumer, government and the environment.”

The AA

Jacob Pfaudler, AA CEO, said: “The AA has always been the champion of the driver, and we have millions of touchpoints with them across the driver lifecycle every year. We are listening to our members and believe a determined, system-wide approach to unlocking demand, and creating driver confidence, is now essential as the 2030 deadline creeps ever closer. As a society, as an industry, as consumers and as drivers, it is vital we get this right for the good of us all.”

Edmund King, AA president, added: “The AA supported the original zero emission new cars sales deadline of 2030 as ‘challenging but ambitious’ and the results of this consultation should define the firm route to zero emissions. Understandably drivers have been ‘hesitant not hostile’ about the transition but more clarity on hybrids, vans and planning support for accelerated charging infrastructure should give them more certainty. Climate change is a critical global challenge and decarbonising transport is essential.”

Sue Robinson, chief executive of the National Franchised Dealers Association (NFDA)

“NFDA welcomes the Government’s launch of the consultation today, seeking views on proposals to support the UK’s transition to zero-emission vehicles. The consultation is divided into two parts: one focusing on assessing the phase-out date, and the other on flexibilities and potential updates to the ZEV mandate.”

James Court, public policy director at Octopus Electric Vehicles

“The ZEV mandate is working; 25% of new car sales were electric last month and we can’t let this momentum slip.

“Drivers and investors need certainty to build confidence in our transition to clean, cheap driving and with clear and bold policy the UK can position itself as a world leader for EVs – creating green jobs, saving drivers cash and cleaning our local air for future generations.”

The ZEV mandate consultation is online here. The consultation closes at 11.59pm on 18 February 2025.

The consultation on changes to regulatory flexibility for zero-emission vans over 3.5 tonnes and up to 4.25 tonnes is open until 11.59pm on 3 March 2025 and is online here.