Glossary · UK
What is Zero Emission Vehicle (ZEV) Mandate?
A UK regulation requiring vehicle manufacturers to sell a minimum percentage of zero-emission vehicles each year, rising annually toward 80% of cars by 2030.
Full Definition
The Zero Emission Vehicle (ZEV) Mandate is a UK government regulation, introduced under the Zero Emission Vehicles, Infrastructure and Charging (ZEV) regulations 2023, that requires vehicle manufacturers to ensure a minimum share of their new car and van sales are zero-emission (primarily battery electric). The targets increase annually: in 2026, manufacturers must ensure at least 28% of new cars and 16% of new vans they sell in the UK are zero-emission. The ZEV percentage required rises each year, reaching 80% of new cars by 2030 and 100% of new cars and vans by 2035. Manufacturers who fall short of their ZEV obligation face financial penalties of GBP 15,000 per ZEV shortfall for cars (GBP 18,000 for vans) unless they can offset non-compliance through ZEV credits traded with other manufacturers, or by selling more ZEVs than required in a previous year. The mandate is a key driver of the shift toward electric vehicles in the UK and has a direct effect on employer salary sacrifice EV schemes, company car BIK rates, and the availability and pricing of electric vehicles.