The Zero Emission Vehicle (ZEV) Mandate makes it a legal requirement that, by 2030, 80% of new cars and 70% of new vans sold in Great Britain must be zero emission.
In this post we’ll explore the various targets the ZEV Mandate sets out and discuss how they might impact fleets and businesses.
In light of the ZEV Mandate, you will likely have to devise and implement an EV adoption strategy for your business. If you want some advice and support on the risk management and insurance implications of electrifying your fleet, our friendly team of commercial motor experts are always on hand to help. Call us on 020 8290 9099 or email us at commercial.motor@anthonyjones.com.
What is the ZEV Mandate for 2024?
The ZEV Mandate came into force in early 2024. An immediate requirement is that 22% of new cars sold in the UK from this year must be fully electric.
What is the ZEV Target for 2035?
Initially, the UK Government was aiming for a total ban on the sale of new petrol and diesel cars by 2030. The ZEV Mandate pushes this target back to 2035. The aim is to enforce new EV sales incrementally over the next decade or so.
The ZEV Mandate targets are:
- 28% of new car sales must be fully electric by 2025.
- 52% of new car sales must be fully electric by 2028.
- 80% of new car sales must be fully electric by 2030.
- 100% of new car sales must be fully electric by 2035.
Any car manufacturers who do not meet these quotas could receive a fine of £15,000 per vehicle for every car or van they sell that is not fully electric.
EV Car Sales Figures 2024 – Where Are We Now?
The only manufacturers who are likely to meet the 22% target for 2024 are those who already have a majority or full range of EVs. These include MG, Smart, and Tesla.
Beyond this, it looks unlikely that the UK will achieve this 22% target this year. At the time of writing, only 16% of new car sales are EVs. For some brands, electric car sales account for just 3% of their overall annual sales figures.
The zero emission truck market is not faring any better. Electric and hydrogen trucks represent just 0.8% of the market. A recent report found that just one in 119 new trucks sold are zero emission models.
It’s unlikely that the government will revise its ZEV Mandate targets any time soon, seeing as the Mandate has only come into action this year. So expect manufacturers to offer significant discounts on their electric models before the year’s out as they push desperately to meet the 22% target for 2024.
How Does the ZEV Mandate Affect Fleets and Businesses?
The ambitious targets will put a lot of pressure on vehicle manufacturers to make their electric cars and vans as affordable and accessible as possible. The government will likely continue to offer grants and incentives to encourage both individuals and businesses to switch to fully electric vehicles. So if you currently feel that EVs are beyond your means, expect that to change very soon.
Though the ZEV Mandate will place the greatest pressure on car manufacturers, it also means that businesses of all kinds will have to prepare to switch to a fully electric fleet in the coming years. This means that business owners and fleet managers have an obligation to review their operations, to ensure they’re adequately prepared.
How to Prepare Your Fleet for the ZEV Mandate?
Preparing your fleet to transition to electric will include asking the following questions and ensuring your strategy for electrification can met them:
- What are your mileage and haulage needs? What sort of EVs will you have to acquire to help you meet these needs?
- Do you have a sufficient charging infrastructure in place? Will your drivers charge their vehicles at the workplace, or at home?
- Are your drivers prepared for the change? Do they need training in how to drive an EV, and on how to manage charging and range?
- Will your current business insurance and commercial motor insurance cover you for a fully electric fleet, along with the necessary charging infrastructure?
Is Your Business Ready to Go Electric?
We have a couple of guides that will help you prepare for the ZEV Mandate as the targets ramp up in the coming years:
- How to electrify your fleet – creating and implementing a flexible EV adoption strategy.
- Installing electric charge points for fleets – grants, risks, and targets.
If you want some advice and support on the risk management and insurance implications of electrifying your fleet, our friendly team of commercial motor experts are always on hand to help. Call us on 020 8290 9099 or email us at commercial.motor@anthonyjones.com.
