What is the latest with the ZEV mandate and how does it impact my business?

The Zero Emissions Vehicle (ZEV) mandate forms a cornerstone of the UK government’s Net-Zero Strategy, having been designed to help boost the sales of EVs across the country. In February 2025, alongside other members of the EV charging sector we responded to a consultation from the government asking for feedback.

Key Points

• Reaching Net-Zero: By 2035 every vehicle sold in the UK must be zero-emissions, as we get closer to that date the percentage of EV vehicles that are sold by the manufacturer must increase. Otherwise, the manufacturer risks fines.
• Planning Not Panicking: By taking action in a considered and managed way, your business can avoid some of the key challenges for businesses such as rising vehicle costs and increased EV infrastructure demand.

How does the ZEV mandate work?

The ZEV mandate(1) works by setting annual sales targets for car manufacturers, as each year passes the targets increase by percentage. For each sale of a ZEV, a certificate is issued to the manufacturer which helps to track their progress towards the target. Failure to meet the targets results in a fine per offending ICE vehicle.

In 2024 the target was that 22% of all vehicles sold that year must be ZEVs, now in 2025 that target has been raised to 28%, with it increasing each year. The aim is that by 2035, 100% of vehicles sold will be zero-emissions. Note that larger Heavy Goods Vehicles (HGVs), which are vehicles over 26 tonnes, have until 2040 instead.

How will the ZEV mandate impact businesses?

So far, nearly all manufacturers met the 2024 targets(2) and are off to a roaring start in 2025. For businesses, there are short-term and long-term effects that must be taken into consideration for the future.  

In the short-term EVs will continue to stay pricey, however, this issue is counterbalanced by several grants and schemes that are available to those looking to make the jump. Meanwhile, many manufacturers are currently offering discounts to entice buyers towards EVs, so that they can meet the targets. As the decade continues the variety of EV models is also rapidly increasing and the number being manufactured each year escalates, helping to bring down the price further.  

For some businesses who are not ready to transition yet, the second-hand market for ICE vehicles will help to provide short-term relief, with record low prices across this market. However, how long this will remain viable is another story as insurance and maintenance costs on old ICE vehicles are likely to rise once the ban comes into effect.  

Another impact will be the pressure on smaller businesses who rely on public charging for their EV fleets. With more EV drivers, the demand on the availability of chargers will be greater, therefore fleets that wish to utilise public chargers will have to compete with more of the general population, since everyone is making the switch in a similar time frame. 

For fleets that include larger HGVs, the timeline is extended.  Due to the size of these vehicles and the low availability of models at present, the extension provides more time for planning and preparation. This does not equate to complacency, however!