The UK Zero Emission Vehicle (ZEV) Mandate set automakers a 2025 target of 28% BEV share for new car sales (rising to 33% in 2026 and 80% by 2030). The actual 2025 outcome was 23.43%, or 473,348 battery-electric cars of 2,020,520 registered (SMMT, 6 January 2026), a notable miss. The actual penalty exposure is smaller than the headline gap suggests because of the mandate's flexibility provisions.
Three Flexibility Mechanisms Used
First, banking and borrowing: OEMs can borrow from future-year allowances, a mechanism the government extended to 2029. Second, CO2 conversion: car-makers can convert CO2 savings on their non-ZEV cars into ZEV credits. Third, trading: manufacturers with surplus credits, typically BEV-only brands, can sell them to those short of the target.
Penalty per Missed Vehicle
The headline penalty was £15,000 per missed car in 2024 and was cut to £12,000 from 2025 (UK government response, 7 April 2025). Because credits can be traded, buying them can be cheaper than paying the penalty.
What 2026 Looks Like
The 2026 ZEV target is 33% BEV share. Meeting it requires a sharp rise in BEV mix via new model launches (especially smaller, cheaper BEVs) or continued credit purchases. SMMT has called the government's forthcoming review of the mandate crucial for the industry.
Track UK BEV share month-by-month on the UK EV dashboard.