Government consults on zero-emission van sales targets

The Department for Transport (DfT) has opened a consultation on the operation of the ZEV Mandate, which sets annual targets for the percentage of vans and cars sold that must be zero-emission vehicles (ZEVs), as part of a promised review of the scheme.

The call for evidence is designed to ensure the policy remains effective in delivering the UK’s transition to ZEVs, with four of the five parts of the consultation being conducted jointly by the UK government and devolved administrations in Scotland, Wales and Northern Ireland.

The UK government says it remains committed to phasing out new cars that rely solely on internal combustion engines by 2030, and to 100 per cent of new van and car sales being zero-emission by 2035.

However, in a foreword to the consultation, the transport secretary Heidi Alexander said: “We are also aware of wider challenges and uncertainty faced by the UK automotive sector, related to energy price increases, growing international competition and uncertainty around the impact of potential changes to how UK-made vehicles will be treated in export markets.

“The government must support the industry to play its part in the transition, while ensuring it remains attractive for manufacturers to base operations in the UK, with all the benefits that brings in providing the green jobs of the future.

“We have a long-standing commitment to publish a review of the ZEV Mandate to ensure we are taking a pragmatic and balanced approach to the transition. This consultation forms an important part of the review process and seeks views on potential adjustments to the Mandate. These views will inform our approach as the UK continues to transition to zero emission vehicles and as we continue to work together with industry to make Britain cleaner, more secure, and more prosperous.”

The consultation document begins by outlining the impact thus far of the ZEV Mandate, and issues that have arisen since it was introduced. There are now more than 40 models of ZEV vans available in the UK, and the number is increasing, with almost two thirds of all models now available as EVs.

DfT points out that in addition to having committed an additional £1 billion grant funding for ZEV vans and trucks to help decarbonise road freight, it has altered regulations to simplify MOT testing and drivers’ hours rules for large electric vans up to 4.25 tonnes.

While the market has been compliant with the ZEV Mandate so far, the share of ZEVs remains below the levels anticipated by the mandate’s headline targets – particularly for vans, “which registered ZEV sales of 6.8 per cent in the 2024 scheme year, 9.7 per cent in 2025 based on provisional compliance data and 11.3 per cent in June 2026, against headline targets of 10, 16 and 24 per cent respectively”.

“This does not match the rapid increases in ZE van supply assumed in the initial trajectory,” said DfT.

“This gap reflects both the rationale for, and is enabled by, the extension of ZEV Mandate flexibilities originally built into the regulation, and the introduction of new ones. While some flexibilities were only intended to be available during the transitional period, these were extended in recognition of the lower than anticipated uptake.

“They have enabled the market to comply with the regulation and reduce carbon emissions, whilst delivering fewer ZEVs than required by the headline target.”

Among the questions asked by the consultation is whether any change is required to the current ZEV Mandate trajectory for vans. Currently the headline target is for 70 per cent of vans sold to be zero-emission by 2030, rising to 100 per cent by 2035.

In the consultation options, the 100 per cent 2035 target is retained, but the 2030 target could be reduced to 60, 50 or even 40 per cent. Another option is to retain the 70 per cent target for 2030 but to extend the scheme’s flexibilities such as borrowing, banking and CO2 conversion, which are currently set to end in 2029, through to 2034.

The consultation also asks if respondents would propose any additional alternative trajectories for the van targets, and whether extension of current flexibilities beyond 2030 should accompany a change in the headline targets.

The government says it is also open to views on additional types of credits that could stimulate ZEV supply in a manner that would deliver wider social value, for example, rewarding innovative production methods or supporting specific market segments. This could include credits for zero emission M2 minibuses of less than 4.25t, specialist fleet vehicles or sustainable supply chains.

The consultation is open for response until Friday 23 October.

Launching the consultation, Heidi Alexander said: “The UK EV market is strong – sales are up, British manufacturers and charge point operators are investing billions, alongside our backing of £7.5bn…  It’s right we keep targets under review to ensure they’re practical and back British industry. The end goal hasn’t changed – but we need to take business with us on the journey, and that’s exactly what we’re doing today, by making sure industry has the chance to shape how we get there.”

The business secretary Jonathan Reynolds said: “The UK’s automotive sector is vital to our economy and future growth, and we’re determined to keep it that way as we get on with reindustrialising Britain to deliver good growth in every postcode. This consultation is about listening to industry, examining the evidence and making sure the mandate continues supporting investment, innovation and competitiveness, so Britain’s car sector can thrive.”

Ben Fletcher, chief executive of Logistics UK, said: “Logistics UK members are committed to decarbonising their fleets, and we welcome the opportunity to shape how the transition is delivered.

“The commercial vehicle market works differently from the car market, and van uptake continues to run behind trajectory, largely because of practical barriers around grid connections, public charging that suits larger vehicles and costs. Getting those enablers right matters as much as the targets themselves. We’ll be consulting members over the coming weeks and responding in full.”

Nick Connor, chief executive of the Institute of the Motor Industry (IMI), said: “Today’s announcement will undoubtedly be welcomed by wide sections of the automotive industry. However, our own very recent research has shown that the automotive workforce has serious doubts about whether it can keep pace based on the current targets, so the skills and support to help them achieve this is key.

“The destination remains clear, but what everyone needs – from manufacturers to frontline dealers and garages and, of course, motorists – is absolute clarity on the pace and pathway to get there. The constant uncertainty has done nothing to motivate businesses to commit to the essential upskilling that is needed to provide motorists with confidence that when they make the switch, they will be able to find a garage that can work on their vehicle safely and efficiently.

“The sector needs a clear picture of how the transition will happen so that training providers, employers and individuals can plan investment in skills with confidence. That’s the balancing act that matters most: realistic targets for vehicle sales, matched by an unwavering commitment to making sure the workforce is ready to support them.”

According to a recent survey of IMI members, 44 per cent said the transition to ZEVs was having a mostly or slightly negative effect on their organisation, while 79 per cent were ‘not very’ or ‘not at all’ confident that the transition to ZEVs could be delivered safety and sustainably. 82 per cent similarly lacked confidence that the workforce would be ready at the required pace, while 39 per cent rated access to EV-related training and upskilling in their segment as very or fairly poor.

The main priorities that should be addressed by a review of the mandate, IMI members said, were charging infrastructure (23 per cent), workforce skills and training (21 per cent) and vehicle affordability (15 per cent).

“According to our members, skills is an absolute priority,” added Nick Connor.

“It is critical that the hard job of making sure technicians, engineers and the wider workforce are ready, safe and confident to deliver it must be central to the review. And we can’t forget that every electric vehicle already on UK roads, needs a technician qualified to work on it safely throughout its life.”

Mike Hawes, chief executive of the Society for Motor Manufacturers and Traders (SMMT), said: “The automotive industry is fully committed to a zero-emission future, investing billions in new technologies, products and incentives. However, with the ZEV Mandate conceived under vastly different conditions, this welcome review is a timely opportunity to adjust the transition so it works for all. That means a commercially sustainable transition which supports UK competitiveness, investment and jobs whilst delivering greater choice and affordability for motorists – the sooner, the better.”

Simon Staton, client management director at Venson Automotive Solutions, said: “We’ve consistently called for a practical approach to the UK’s transition to zero-emission vehicles, so the review is welcome. It’s clear that the pathway needs to reflect the operational and financial realities facing businesses, particularly commercial vehicle fleets.

“Electrifying a working fleet, particularly for commercial vehicles, isn’t simply a question of replacing one vehicle with another. Vehicle suitability, payload and range requirements, access to charging, acquisition costs and the need to keep vehicles operational all influence whether an electric van can currently do the job required of it. It is therefore encouraging that the Government is looking specifically at the trajectory for vans as part of this review.

“However, changing the sales trajectory alone won’t remove the barriers to fleet electrification. Government needs to look at the whole ecosystem, including charging infrastructure that works for commercial vehicles, vehicle availability and affordability, as well as measures that support a healthy second-hand EV market.

“The 2035 destination hasn’t changed, so fleets still need to plan for electrification. What businesses need from this review is greater certainty and a realistic, commercially sustainable pathway that enables them to make that transition without compromising operational efficiency or service delivery.”

The consultation can be accessed at the gov.uk website, here.