Government Revs Up Support for UK Carmakers with Revised EV Mandate
In a significant move aimed at bolstering the UK's automotive industry amidst global economic challenges, Prime Minister Keir Starmer has unveiled a comprehensive support package, headlined by revisions to the Zero Emission Vehicle (ZEV) Mandate. The announcement, made on April 7th, 2025, signals a firm commitment to the 2030 phase-out of new petrol and diesel car sales, while injecting much-needed flexibility for manufacturers transitioning to electric vehicle (EV) production.
The amended ZEV Mandate, a central pillar of the government's "Plan for Change," will allow hybrid vehicles to be sold until 2035, providing a smoother transition for the industry. Furthermore, small and micro-volume manufacturers, including luxury brands like McLaren and Aston Martin, will be exempt from the mandate targets, safeguarding the UK's iconic automotive heritage.
"Global trade is being transformed, so we must go further and faster in reshaping our economy and our country through our Plan for Change," stated Prime Minister Starmer. "I am determined to back British brilliance. Now more than ever, UK businesses and working people need a government that steps up, not stands aside."
The package includes a £2.3 billion investment to boost EV manufacturing and charging infrastructure, with a new charge point being installed every half an hour. Tax breaks worth hundreds of millions of pounds will also be implemented to incentivize consumers to switch to EVs.
Key changes to the ZEV Mandate include:
Increased Flexibility: Manufacturers will have greater flexibility in meeting targets up to 2030, allowing for increased sales in later years when demand is expected to be higher.
Hybrid Extension: Hybrid cars can be sold until 2035, providing additional time for industry adaptation.
Van to Car Credit Transfer: A new flexibility allows for the transfer of credits between vans and cars.
Small Manufacturer Exemption: Supercar brands are exempt from mandate targets.
Vans ICE Extension: Vans with an internal combustion engine (ICE) and hybrid vans can be sold until 2035.
Transport Secretary Heidi Alexander emphasised the government's commitment to supporting British business, stating, "Our ambitious package of strengthening reforms will protect and create jobs – making the UK a global automotive leader in the switch to EVs – all the while meeting our core manifesto commitment to phase out petrol and diesel vehicles by 2030."
The government's announcement comes at a crucial time, with the UK being the largest EV market in Europe, witnessing a 40% increase in EV sales in March compared to the previous year. The automotive industry, employing 152,000 people and contributing £19 billion to the economy, is poised to capitalize on the growing demand for EVs.
Chancellor Rachel Reeves, Energy Secretary Ed Miliband, and Business Secretary Jonathan Reynolds echoed the Prime Minister's sentiments, highlighting the government's commitment to supporting working people, investing in future industries, and driving economic growth.
This move is seen as a major boost for the UK construction industry, with the expansion of charging infrastructure requiring significant development and investment. The government's focus on supporting domestic manufacturing and driving EV adoption is expected to create new opportunities and jobs within the sector.
