What is the ZEV Mandate?
What is the UK ZEV Mandate?
The UK government’s net zero commitment is exemplified by the Zero Emission Vehicle (ZEV) Mandate. Introduced in 2024, the ZEV Mandate requires that a certain percentage of a vehicle manufacturer’s sales must be new zero-emission models, such as Electric Vehicles
(EVs). The Labour Party have maintained the government’s commitment, setting the stage for continued evolution in the UK car market.
The Mandate is intended to reduce the number of Internal Combustion Engine (ICE) vehicles on the road. With transport producing approximately 26% of the UK's emissions
and around 91% of domestic transport emissions coming from road vehicles, the ZEV targets could become a huge contributor to UK road decarbonisation and sustainability.
With the sales targets for 2025 being 28% for cars and 16% for vans, the impact of the ZEV Mandate may seem relatively minor. However, the targets will keep increasing yearly until they reach 100% in 2035. This means that, while the news may not pertain to everyday drivers or businesses, anyone on the lookout for a new vehicle in the future will find zero-emission vehicles more prevalent.
So, how exactly does the ZEV Mandate work, and what kind of impact is it set to have on drivers? In this article, we will explore what this zero-emissions mandate is and what it means to individuals and businesses.
How does ZEV work?
The ZEV Mandate works by requiring that vehicle manufacturers must have a certain percentage of their yearly sales covering zero-emission vehicles. These sales are converted into certificates, and manufacturers must have a certain number by the end of the year in relation to their sales.
ZEV targets are set to increase year by year, as outlined here:
• 2024 – 22% for cars, 10% for vans
• 2025 – 28% for cars, 16% for vans
• 2026 – 33% for cars, 24% for vans
• 2027 – 38% for cars, 34% for vans
• 2028 – 52% for cars, 46% for vans
• 2029 – 66% for cars, 58% for vans
• 2030 – 80% for cars, 70% for vans
Failing to meet the ZEV Mandate’s targets can result in steep fines, including £15,000 per car and £18,000 per van.
If a business produces fewer than 2,500 models a year, it will not be subject to ZEV until 2029. The Mandate also does not apply to Heavy Goods Vehicles (HGVs) such as articulated lorries, though development in the zero-emission market for said vehicles may well lead to similar legislation in the future.
What are the benefits of the ZEV Mandate?
The ZEV Mandate offers several benefits for the UK, including:
Improved air quality
The ZEV Mandate is intended to reduce the number of ICE vehicles on the road. With the resulting reduction in greenhouse gas emissions, people in the UK should be able to enjoy higher air quality.
EV Technology
The ZEV targets have resulted in manufacturers putting greater focus on zero-emission technology, such as electric vehicles. This is likely to lead to a wider range of choices in the EV market, such as electric SUVs
and electric vans.
It could also result in businesses putting a greater focus on developing core elements like EV battery life, as well as training more EV mechanics to ease maintenance.
Infrastructure
As the UK Government continues pursuing sustainability targets, it is predicted to invest more heavily in the infrastructure required for zero-emission vehicles. This includes a wider rollout of public charging stations,
making it easier for businesses and long-distance drivers to switch over to electric vehicles without disrupting their operations.
What does ZEV mean for fleet managers?
While the ZEV Mandate pertains to manufacturing, it will have a wider impact on the British automotive market. This extends to businesses and fleet managers, as a change in the makeup of the market will influence how they acquire, maintain and manage business vehicles:
ICE vehicle purchasing and leasing
As a result of the Mandate, manufacturers are less likely to prioritise ICE vehicles. Because of this, fleet managers coming to the end of car or van leases will have fewer choices for ICE models. While this may not be an immediate change, it will require managers to start considering zero-emission equivalents for their fleets.
Transitioning to EV
As businesses consider electrification, they need to take multiple factors into account. These include the suitability of their premises for electric vehicles, the availability of EV chargers, and the cost of EV maintenance. Fleet Managers can clarify the costs of electrification via our EV Cost Calculator,
or book a test drive
to try our electric vehicles for themselves and ask any questions they might have about ownership.
EV drivers
As the UK vehicle market evolves, fleet managers may need to consider upskilling their drivers. This could include advice on how to best plan routes according to EV charger availability, awareness of features like regenerative braking, and so on. This will ease the transition and help businesses enjoy the full benefits of electrification.
The most important aspect of the ZEV Mandate for businesses is that it is a surefire indicator of how the vehicle market will change in the near future.
The UK Government may well introduce further legislation, which would be a surefire sign that the EV transition is coming. Drivers, supply chains, operational strategies and more will change as both manufacturers and the UK Government focus on EVs and other zero-emission vehicles. With this in mind, it is more important than ever for businesses to be aware of the benefits of electrification and how they can get started.
FAQs
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