Under the updated Zero Emission Vehicle (ZEV) mandate, hybrid cars and vans will be allowed to remain on sale until 2035. Small-volume carmakers, including iconic names like McLaren and Aston Martin, are exempt from the 2030 ban, helping protect Britain’s luxury car heritage.

Prime Minister Keir Starmer stressed the need to reshape the economy in response to global challenges, highlighting that supporting British businesses is essential to drive growth and create better jobs. A new Industrial Strategy, due this spring, will outline further steps to boost future industries like EV manufacturing.

Key Changes to the ZEV Mandate

To give the industry more breathing room:

• Manufacturers will be able to shift more EV sales targets to later years when consumer demand is expected to grow.
• Hybrids and ICE vans will stay on the market until 2035 to ease the transition.
• Small and micro-volume manufacturers will be exempt from strict phase-out rules.
• New flexibility will allow credit trading between vans and cars to help firms meet targets more easily.

Supporting EV Growth

The government is also continuing its £2.3 billion investment into British EV manufacturing and charging infrastructure. Today, a public chargepoint is installed roughly every 29 minutes, making EV ownership more practical across the country.

Demand for electric vehicles is already increasing, with EV sales in March 2025 up by over 40% compared to last year. In 2024, the UK ranked as Europe’s largest EV market, selling more than 382,000 electric cars.

Owning an EV is also becoming cheaper: drivers charging at home can save around £1,100 a year compared to petrol cars. Half of all used electric cars now sell for under £20,000, and 29 brand-new EV models are available for less than £30,000.

A Strong Future for British Automotive

The UK’s car industry, which employs over 150,000 people and adds £19 billion to the economy, plays a vital role in the country’s future. By offering flexibility and continued investment, the government hopes to secure Britain’s leadership in the EV market, attract private investment, and ensure well-paid jobs for generations to come.

The Society of Motor Manufacturers and Traders (SMMT) is a leading UK industry body representing over 800 automotive companies, from manufacturers to technology firms. It supports the sector by providing market insights, influencing policy, promoting trade, and guiding businesses through the transition to electric and sustainable mobility.

If you are looking to expand into the UK market, gain valuable insights, and build connections with key players in the industry, becoming an SMMT member is highly recommended.
You can find more information about membership here

Source: GOV | SMMT