What do changes to the ZEV mandate actually mean for drivers?

You may have heard about the UK Government’s zero-emission vehicle (ZEV) mandate, or that petrol and diesel cars are being ‘banned’. But you may not know what it means, how it’ll affect drivers, or about some of the potential changes to the ZEV mandate that could be coming in. So, let’s cut through the headlines and get into it.

The UK Government has set a target for all new cars and vans to be zero-emission (aka electric) by 2035. The ZEV mandate is the roadmap for getting there. The mandate means manufacturers have to sell a certain percentage of zero-emission vehicles each year.

The current ZEV mandate came into law in 2024. In short, by the end of 2030, 80% of all new cars sold in Britain must be fully electric, with hybrids making up the other 20%.

The UK's mandate is our response to the global shift to electric vehicles. This was primarily a climate issue, but has quickly moved to an industrial issue. As batteries and EVs get cheaper and countries like China have gained market share, we need to ensure that we remain competitive and our car makers are investing in future-proofed technology, as well as giving consumers and business confidence in the transition.

The ZEV mandate:

• Supports the UK EV industry, including skilled manufacturing jobs and a thriving battery supply chain. For example, the £4bn battery gigafactory being built in Somerset by Tata Agratas 
• Attracts private sector investors, to the tune of £41 billion since 2020
• Increases the number of EVs on the market, which drives costs down for drivers
• Reduces the UK’s reliance on global fossil fuels, and their fluctuating prices

Businesses and investors prefer to have clear instructions that don’t change because it helps them plan ahead. 

Andy Burnham is reviewing a plan to alter the mandate by reducing the percentage of EVs carmakers need to sell each year. But changing the mandate could have some unintended consequences:

• Create more uncertainty for businesses and workers
• Make drivers wonder if the UK is wavering in its transition to EVs (it’s not) 
• Result in fewer EVs hitting the market sooner, meaning higher prices for drivers in the longer term. 

No. The government have said the dates are staying the same. 

• No new internal combustion engine (ICE) vehicles will be sold after 2030 – meaning no more new petrol or diesel cars
• No new hybrid vehicles will be sold after 2035 
• From that point, the only new cars sold will be fully electric 

Because the major milestones aren’t changing, and we’re still on track to phase out new petrol, diesel and hybrid cars from 2035, the revised ZEV mandate shouldn’t affect drivers too much. It’s important to remember that the ZEV mandate is a mandate for manufacturers. You’re free to make your own choices as a customer. It also only affects new car sales. You’ll still be able to buy used petrol, diesel and hybrid cars beyond 2035. If you already drive an EV, you can carry on basking in the benefits. 

News of the mandate potentially changing isn’t affecting demand for EVs. EVs are gaining popularity and we don’t expect that to slow down. There are over 2 million EVs on British roads and they made up 27% of new car registrations in June 2026. Prices are coming down, and there’s more choice than ever with new brands launching in the UK all the time.

Right now, the UK relies heavily on fossil fuels from abroad. We spend around £43 billion a year importing oil and we use about 58% of that for transport. 

When this supply is disrupted, for example by recent crises in the Middle East, it creates sudden, severe price shocks for UK families and businesses. Analysis from the Climate Change Committee shows that a single fossil fuel price spike, such as that experienced in 2022, could cost the UK economy as much as the entire additional investment needed to reach net zero by 2050. 

Shifting away from oil protects us from the knock-on effects of any future geopolitical volatility. The more EV drivers there are on the roads (and the number just passed 2 million), the more we’re all shielded from oil price spikes. The transition to EVs goes beyond just climate policy or industrial policy – it’s about national energy security and economic resilience.

These figures are from A-Zev: The Road to Electric, a study we published with New Automotive. Check it out if you really want to go deep on the ZEV mandate. 

Right now, there are several government incentives to help drivers make the switch.

• You need to pay Benefit in Kind (BiK) tax on perks you get from your employer that are separate from your wages, including company cars. The BiK tax rate is much lower for EVs. It’s currently 4% compared to up to 14% for hybrids and up to 38% for petrol and diesel cars. 
  • The EV BiK rate is set to rise gradually to 9% by 2029, but it will stay much lower than for petrol, diesel and hybrid cars. 
• The Electric Car Grant gives you a discount of up to £3,750 off the price of a new electric car priced £37,000 or under. 
• EV chargepoint grants get you up to £500 off the cost of installing a charger. 

Some of these incentives won’t be around forever. The Electric Car Grant is first-come, first-served, and chargepoint grants will likely phase out as infrastructure improves. So if you’re on the fence, now’s the time to switch. 

A revised ZEV mandate would mean manufacturers are allowed to sell a few more hybrid cars than initially planned. But new petrol and diesel cars won’t be sold beyond 2030, and sales of new hybrids will still be phased out completely after 2035. Regardless of political changes, it’s clear that the UK is still firmly on course for an electric revolution.