What does the ZEV Mandate mean?
Big changes are on the horizon, and they're electrifying the way we think about cars. In a bold move towards a greener future, the UK Government has announced the Zero-Emission Vehicle (ZEV) Mandate, set to roll out in 2024. But what does this mandate mean for you, the consumer?
Let's charge up our knowledge and explore the electrifying answers to some crucial questions.
What is the ZEV Mandate?
The ZEV Mandate is a game-changing legal requirement for automakers to meet targets for new electric vehicle (EV) sales. Buckle up for a ride through the numbers – in 2024, manufacturers must ensure that a minimum of 22% of their sales are fully electric. The bar will then rise to 28% in 2025, 33% in 2026, 38% in 2027, and it keeps climbing, reaching an impressive 80% by 2030. What happens after 2030? The government is still polishing the details, but rumors suggest we could see an exhilarating surge towards 100% electric by 2035.
What's in it for car makers?
Car manufacturers with a lead foot in EV sales can bank allowances for future years or strike up a trade with others lagging behind. In 2024, they can borrow up to 75% of their annual EV sales target, gradually dropping to 25% in 2026. This approach offers a helping hand to firms in the early stages of the EV revolution.
But beware, those who don't meet their sales targets will face fines as hefty as a speeding ticket – £15,000 for every non-zero-emission vehicle sold outside the allowance.
Currently, the ZEV Mandate applies to England, Scotland, and Wales, with Northern Ireland taking an interim route. They'll continue with scaled-back CO2 emission regulations until they join the electric party.
What Does the ZEV Mandate Mean for You?
If you've been toying with the idea of going electric, now's the perfect time to charge forward. While only 16.4% of new cars sold in 2023 are electric, we're still a bit shy of the 22% target. To encourage you to make the electric leap and help manufacturers dodge fines, expect some jolting discounts on EVs. Discounts for electric cars are already on the rise, up by a shocking 201.4% since the year's inception.
Which Brands Will Lead the Charge?
Brands like MG, Polestar, Smart, and Tesla are already leading the race with their electric line-ups. Expect smaller discounts from these EV pioneers. Others, like Alfa Romeo, Dacia, Land Rover, and Seat, have some catching up to do, but they can benefit from credit sharing within their automotive groups. As for brands like Ford, Honda, Mazda, Toyota, and Lexus, they may have to offer electrifying discounts to meet their EV targets.
Are There Any Government Grants for Electric Car Buyers?
The Plug-in Car Grant (PICG) is still around for specific vehicles, offering some charge relief. While it was scaled back in 2022, it's still available for wheelchair-accessible vehicles, mopeds, motorcycles, and small and large vans. So, there are still perks for electric vehicle enthusiasts.
And Vans, What About Them?
The ZEV Mandate isn't just for cars; it's charging into the van sector as well. From 2024, 10% of new van sales need to be fully electric, with that figure rising to 70% by 2030. The government is still finetuning the details for 2030 and beyond. As with cars, manufacturers can bank, buy, or sell credits to meet their targets.
Buckle up, because the ZEV Mandate is electrifying the future of transportation. With big discounts on the horizon and automakers racing towards EV targets, there's never been a better time to make the switch to electric. Get ready to hit the road, and let's drive towards a cleaner, greener tomorrow!
