The Zero Emissions Vehicle mandate also known as the ZEV mandate is a pivotal regulation shaping the future automotive landscape. Aligning with the UK government’s strategy to be Net-Zero by 2050, the focus is accelerating the transition to zero-emission vehicles for cars and vans. In this article, we will explore the ZEV mandate’s significance and the key objectives it aims to accomplish.
What is the Zero Emissions Vehicle (ZEV) mandate?
The UK government is working with administrations on accelerating road transport decarbonisation. The aim is for all new cars and vans to be zero emission (ZE) at the tailpipe by 2035. Since January 2024, Manufacturers have been obligated to ensure a percentage of their total annual sales are ZEVs (battery electric or possibly hydrogen). Implementing the ZEV mandate is expected to significantly reduce greenhouse gas emissions, improve air quality and drive the transition to sustainable transportation. If a manufacturer fails to meet the threshold and has not capitalised on credit borrowing/trading they will incur a compliance payment fine.
- Cars: £15,000 per non-ZEV car produced by the manufacturer over the specified percentage
- Vans: £9,000 per non-ZEV van produced by the manufacturer over the specified percentage in 2024 only, rising to £18,000 for the remainder of the regulation timeframe
Issuing a fine is a last resort but it is there to serve as an incentive to drive emissions compliance through the manufacturers.
What are the ZEV mandate deadlines?
Here you will find the ZEV mandate deadlines for the percentage of new manufacturer vehicle sales that are required to be zero-emissions over the next five-year period:
Percentage of new zero-emission cars
- 2024 – 22%
- 2025 – 28%
- 2026 – 33%
- 2027 – 38%
- 2028 – 52%
- 2029 – 66%
Percentage of new zero-emission vans
- 2024 – 10%
- 2025 – 16%
- 2026 – 24%
- 2027 – 34%
- 2028 – 46%
- 2029 – 58%
What does this mean for fleets?
You may be thinking ‘How does this affect my fleet if the regulations are focused on manufacturers?’ Well, although the UK government has pushed back the deadline for the sale of new fossil-fuelled cars and vans from 2030 to 2035. The ZEV mandate is still in place and it will still heavily influence new fossil-fuelled vehicle production. Whilst this initially may seem daunting, this regulation is still in its infancy so there is a lot of uncertainty about how this will play out over the coming years. Ultimately, there is no need to panic.
What can I do to be prepared?
Firstly, you are taking the right steps by researching the ZEV mandate and learning more about how it might affect you. In the next section, we will explore the direct possible implications we foresee fleet managers experiencing as we move further down the timeline. While a crystal ball isn’t at our disposal, it’s crucial not to ignore potential challenges. Stay proactive and be prepared for any circumstances to ensure the seamless operation of your fleet.
So, what are the implications for fleet management?
As mentioned above, there is no certainty with any implications linked with the ZEV mandate. However, it is important to consider all of the options to plan and prepare effectively.
Average lease cycles for cars are 3-4 years and 4-5 years for vans. Therefore you are always required to plan. Now, with the ZEV mandate in place, there is no guarantee that you will be able to replace your existing Internal Combustion Engine (ICE) vehicles like for like. With only a certain percentage of new sales being ZEV this could cause challenges with vehicle availability for both new ZEV and ICE models. Ultimately, when you come to the end of your cycle you could either face having a new ZEV which does not fit your use case or limited availability for the ICE vehicle that does.
Price reduction in future?
Secondly, in the not-so-distant future, a positive factor is a potential price reduction of new Zero-Emission Vehicles. Manufacturers may come across a dilemma. With the current high price of ZEVs and manufacturers needing to sell in higher quantities due to the ZEV mandate, they could need to provide the end-user with more of an incentive to purchase. Ultimately, this will bring down the cost of purchase having a substantial impact on the Total Cost of Ownership (TCO) making EVs even more favourable to fleet operators.
More capable EVs?
Finally, due to the ZEV mandate deadline in 2028 with 46% of new van sales being zero-emission, we could see an influx of more capable EV van equivalents of the ICE counterparts. Cheaper to run and maintain, increased power and has more functionality. New technology could revolutionise the van sector and what we see as far off today may become tomorrow’s norm.
Tomorrow is never certain. If you factor in implications like the above and start your ZEV fleet planning, you can be well prepared to maximise the opportunities that arise as a result of this legislation.
What support is available for the transition to an electric fleet?
There is a wealth of support out there to help you with your transition. However, let’s begin by exploring how Webfleet can assist you.
Webfleet’s EV fleet management solution is integral to EV operations, helping drivers overcome range anxiety, better manage routes and navigate efficiently to charge points. Using telematics platforms fleet managers can chart the most cost-effective course to electrification factoring in ZEV Mandate legislation.
Digital tools can be invaluable when evaluating whether the usual routes and journey types taken by conventional vehicles are practical for their electric counterparts. They enable precise energy requirement forecasting. A factor that recently empowered Mitchells of Mansfield in Nottinghamshire to pioneer the use of an 18-tonne Renault E Tech D Wide electric truck in the UK.
The newly released Webfleet EV Services platform also features a range of integrated EV services from trusted partners, with Webfleet being the first partner for all vehicle data. Whether you’re transitioning to EVs or already running an EV fleet, this latest tool provides you with detailed insights into making the switch to EVs:
- Charging hardware and software—expertise in infrastructure design
- Smart charging to reduce emissions and avoid peak-load costs
- Energy management that ensures building energy efficiency
- Battery analytics to help guarantee EV battery safety and reliability
- Optimised route planning for EVs based on energy consumption and other EV data
- Fleet management for real-time insights on EV fleet operations
Is there any other external support available?
The UK offers financial incentives like purchase grants and tax benefits to enhance the adoption of electric fleets. Each grant is contributing to sustainable innovation and greener transportation. Here are some grants that are currently available:
Plug-in Vehicle Grant
The Plug-in Vehicle Grant enables manufacturers and vehicle resellers to offer discounts on retail prices for plug-in vehicles. Eligible vehicles, based on type, brand and model, qualify for these grants. Discounts can range from £2,500 for small vans to as much as £25,000 for large trucks. At the moment, there is no incentivised grant for electric car purchasing. However, as mentioned above, this could enter further down the line to facilitate an increase in ZEV sales.
Workplace Charging Scheme
Workplace charging scheme (WCS) grants up to 75% of the total costs of the purchase and installation of EV charge points (inclusive of VAT).
London ULEZ Van Scrappage Scheme
London ULEZ scrappage scheme has now expanded. All Londoners are now eligible and payments to van fleets increased. Van fleet payments are bolstered to £7,000 and up to £9,500 grants for swapping for an electric van alternative.
Why is the ZEV mandate important?
Manufacturers will need to produce cars and vans with higher sustainability standards, which will ripple effect throughout the entire industry. The successful transition to Zero Emission Vehicles (ZEV) hinges on adapting to regulatory frameworks and capitalising on incentives. By strategically planning and mitigating potential risks, companies can not only comply with the ZEV mandate but also reap the rewards of embracing sustainable transportation. Also, a sustainable fleet can lead to capitalising on new business opportunities by getting ahead of the competition.
Are you looking for the perfect telematics ally for your EV fleet?
Webfleet offers cutting-edge software tailored for effective electric vehicle fleet management. Improve charging, cut costs and increase efficiency to elevate your ROI. Connect with Webfleet’s expert EV team for a FREE consultation on our electric vehicle solutions.
