After the recent announcement outlined by the prime minister delaying the ban on new petrol and diesel vehicles from 2030 to 2035, the car manufacturing business was left with a feeling of uncertainty as to how this will affect them with regard to the looming start date of the Zero-Emission Vehicle mandate. Thankfully today’s news has calmed the waters and given reassurance to the industry and the general public that we are firmly pressing ahead with an EV future.
The Zero-Emission Vehicle mandate is a piece of legislation that comes into force on the 1st of January 2024. This mandate sets out minimum annual targets that vehicle manufacturers must achieve each year on the percentage of sales of zero-tailpipe emission vehicles. Starting with 22% of all cars sold by a manufacturer in 2024 must be fully EV, with the target increasing gradually year on year to 100% by 2035.
Failing to meet these minimum targets will result in vehicle manufacturers receiving fines. To assist with meeting targets manufacturers, have the flexibility through a trading scheme to bank compliance in years when they exceed annual targets for use in future years or trade them with other manufacturers that have fallen short.
In the first year of the mandate, car manufacturers can borrow up to 75% of their annual target, falling to 25% in 2026, to support them in the early stages. This is a welcoming addition to the mandate, ensuring manufacturers are assisted throughout the process and not left feeling pressured to meet targets that could then jeopardise build quality, through processing orders quicker to meet targets.
According to the latest monthly statistics on new car sales, in August, 20% of vehicles sold were zero emission. The second-hand market continues to grow as more EVs enter the market, this trend will only grow further, which in turn will make owning an EV more affordable and accessible, with new makes and models being released.
The overall aim of this mandate is to have 80% of new cars and 70% of new vans sold in the UK be zero emission by 2030, making it easier to increase to 100% by 2035.
Although several schemes introduced by the government to lower the upfront and running costs of an EV have now ended some are still in place. The Workplace Charging Scheme (WCS) which gives qualifying businesses £350 off each charge point ends in March, along with the EV Infrastructure and EV Chargepoint Grant.
Others are currently still in place and look set to continue. Residents living in flats or rented accommodation can continue to claim £350 off the cost of a homeplace charge point. The plug-in van grant giving savings of up to £2,500 for small vans and £5,000 for large vans is available until 2025. This will assist in the uptake of electric vans which is still in its infancy, compared to electric cars.
The tweaks and changes to the mandate seemed to have been welcomed by vehicle manufacturers and all motorists. It gives clear guidance to a market we so heavily rely on, which will ease their worries of not meeting targets, resulting in financial burden.
The mandate demonstrates the government's stance that this really is the future of motoring and every effort will be made to make EVs accessible to everyone. As the years go by towards 2035, it will be interesting to see what/if any help comes in the form of grants for EV charge point installations. As it stands the major grants to businesses end in March, a move that could potentially slow down the take-up of charge points. If these grants don’t continue, we would urge other incentives to be thought of by the government to keep the momentum going.