No carmaker in the UK will have to pay fines for missing electric car sales targets in 2024, according to analysis by campaign group T&E. All but one manufacturer sold enough cars or will use flexibilities to avoid penalties under the zero-emissions vehicle (ZEV) mandate.
Japan's Suzuki is the only carmaker that will need to buy credits from rivals to avoid fines. Brands including Volkswagen, Ford, Toyota, and JLR are among those using additional loopholes. The ZEV mandate, introduced by the previous Conservative government, requires an increasing share of electric car sales each year, with fines of up to £15,000 per non-compliant vehicle.
T&E's analysis suggests the effective target for 2024 was around 18%, lower than the headline 22%, due to flexibilities such as earning credits from reducing fossil fuel car emissions or borrowing from future years. BMW, Mercedes-Benz, Geely, Tesla, and BYD met the mandate through battery car sales alone and can sell surplus credits.
Despite this, the industry argues demand is insufficient, with carmakers spending £4.5bn on discounts. The Society of Motor Manufacturers and Traders warns that the gap between mandate ambitions and market realities threatens jobs and viability. The government is expected to adjust flexibilities while keeping headline targets unchanged.
