ZEV Mandate: Car makers loosing twice has much money on ICE cars

Carmakers spend £7.6 billion discounting petrol, diesel and hybrid cars in 12 months - more than twice as much as EVs

The Government is once again consulting on the Zero Emission Vehicle (ZEV) Mandate, with proposals to potentially severely weaken the trajectory and 2030 targets, as well as furthering the flexibilities that can substantially reduce the compliance rate for manufacturers. The Government should not weaken the ambition of the ZEV Mandate.

Key Points

➔ BEVs were subsidised by £3.1 billion in discounts in the 12 months to July 2026, through a combination of manufacturer discounts and the Government’s Electric Car Grant. This compares with £7.6 billion spent by the industry discounting petrol, diesel and hybrid cars over the same period.

➔ Discounts on EVs are similar to hybrids and combustion engine vehicles. In July 2026, the average discount was £5,442 for BEVs, compared with more than £6,000 for diesel and plug-in hybrid cars and £5,411 for petrol cars.

➔ The ZEV Mandate is working. Manufacturers met their compliance requirements in both 2024 and 2025, and no car manufacturer has faced a fine for non-compliance.

➔ Weakening the mandate could mean between 1.4 and 3 million fewer BEVs sold by 2030.

➔ Further reduction in ambition would severely impact investment in UK manufacturing and infrastructure, while leaving drivers more exposed to volatile petrol and diesel prices, with petrol drivers around four times more vulnerable to energy price shocks than EV drivers.

➔ The UK auto-manufacturing sector requires a robust and coherent industrial strategy, not weaker regulation. Chinese manufacturers are increasing their market share in internal combustion engine models, meaning slowing the transition to EVs would not shield British manufacturers from international competition. 

Carmakers need Government support to face this growing threat to UK manufacturing.

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