In 2024, UK car manufacturers faced the government’s Zero Emission Vehicle (ZEV) mandate, which set a target for 22% of new car sales to be fully electric. Despite initial concerns, all manufacturers, except Suzuki, met these targets through actual sales or by leveraging regulatory flexibilities. Suzuki plans to purchase credits from other manufacturers to comply and avoid fines.
The ZEV mandate aims to progressively increase the proportion of electric vehicle (EV) sales, with targets rising to 28% in 2025 and 80% by 2030. While some manufacturers, such as BMW, Mercedes-Benz, and Volvo’s owner Geely, achieved the 2024 targets through EV sales alone, others utilised available flexibilities, including credits for reducing emissions in fossil fuel vehicles and borrowing credits from future years.
Despite meeting the 2024 targets, the automotive industry has expressed concerns about the sustainability of these mandates. Manufacturers have reportedly incurred approximately £4.5 billion in discounts to stimulate EV sales, a strategy deemed unsustainable without further government support. The Society of Motor Manufacturers and Traders (SMMT) has emphasised the need for consumer incentives to boost demand, particularly in the van market, where EV adoption lags behind passenger vehicles.
In response to industry lobbying, the UK government is considering adjustments to the ZEV mandate. While the headline targets are expected to remain unchanged, additional flexibilities may be introduced to assist manufacturers in meeting these goals. This potential relaxation has sparked debate among stakeholders, with environmental groups advocating for strict adherence to the targets to drive down costs and enhance the UK’s automotive manufacturing sector.
The record number of electric cars sold in 2024, accounting for 19.6% of all new car sales, indicates a positive trend towards electrification. However, the upfront costs of EVs and limited public charging infrastructure remain concerns for consumers. To address these challenges, a balanced approach involving government incentives, infrastructure development, and realistic sales targets is essential to ensure a sustainable transition to electric mobility in the UK.
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