EV Mandates Tighten the Noose on the UK Car Industry

With fines set to reach £1 billion next year the main beneficiaries are Chinese carmakers and Tesla

Car manufacturers must ensure that electric cars make up at least 33% of their total registrations this year or face swingeing Government fines of £12,000 for every car they are short.

So far, they are struggling at below 22%, which is even less than at the same stage last year. They finished 2025 at 23.4%, well below the Government Zero Emission Vehicle (ZEV) mandated target of 28%. The harsh reality is that few private buyers want one, despite what the Government orders.

Manufacturers who fall below target may be able to offset part of their shortfall if the CO₂ emissions from non-electric cars are below the stipulated baseline, for instance if they sell a lot of hybrids. But this is a limited option. They can also buy surplus ZEV allowances on the open market or ‘borrow’ against future surpluses.

The Department of Transport has now published the full overview of ZEV compliance for 2024 registrations, when EV sales reached 19.8% against a target of 22%. Overall, credits from lower emissions have balanced out the 2.2% shortfall.