Just a week after the Government announced changes to its Zero Emissions Vehicle (ZEV) mandate to help the struggling UK motor industry, a leading automotive digital specialist has concluded the changes will offer very little support.
According to analysis from Cox Automotive Europe, the latest adjustments to the mandate will save just 3.5% of the revenue at risk, due to the effect on the industry of the tariffs being imposed by the US President Donald Trump.
The raft of Government measures aimed at supporting the industry included lower fines on automotive manufacturers for missing ZEV targets, to reduce the financial burden on manufacturers who face significant challenges in boosting EV adoption.
Fines for each car within a manufacturer’s shortfall have been reduced from £15,000 to £12,000 and for vans from £18,000 to £15,000.
However using data from the Society of Motor Manufacturers & Traders, Cox Automotive calculated that these changes will only save the UK’s industry approximately £319 million in fines this year, as current forecasts predict a shortfall in pure electric vehicle sales of more than 100,000 units.
To put this figure into perspective, the UK’s £93 billion automotive manufacturing industry is facing a major threat to more than £9 billion in exports to the US because of the recent 25% tariff announcement.
This is further compounded by the near £6 billion ‘compliance bill’ the industry faced in 2024 in its attempt to achieve last year’s targets, which included fines and over £4.5 billion applied in discounts to electric models in attempts to encourage sales of them.
Commenting on the analysis Philip Nothard, Insight Director at Cox Automotive Europe, said that while the automotive industry welcomes adjustments to alleviate the mounting pressure it is experiencing, the adjustments to the ZEV mandate are marginal within the bigger picture.
“As over 15% of the industry’s exports are under threat due to tariffs, along with complications in the global supply chain and inconsistent consumer demand for EVs, much more needs to be done,” Nothard said.
“As an industry, we are committed to building an electric future, but it must be done in an economically sustainable manner. Our research has found that consumer incentives, improvements in the nation’s charging infrastructure, and policies are needed to make a greater impact on the unsustainable costs of this transition.”
