UK ZEV Mandate: What it Means for Fleets
The UK’s Zero Emission Vehicle (ZEV) mandate will undoubtedly have enormous implications right across the automotive supply chain - not just for manufacturers, but for fleets, dealers, repairers, and insurers alike.
Since 2003, sopp+sopp have worked with some of the UK’s largest fleets, insurers, and brokers to deliver end-to-end, efficiency-focused accident management solutions.
In that time, we’ve witnessed our fair share of change in the automotive industry - from new and emerging vehicle technologies, to emissions targets, safety regulations, and environmental initiatives.
Here, along with our partners at Gecko Risk, we discuss the ins and outs of the UK’s ZEV mandate - including the targets it sets out, and what it means for manufacturers & fleets…
What is the ZEV Mandate?
The UK’s Zero Emissions Vehicle (ZEV) mandate was introduced in January 2024. It outlines the steps and targets deemed necessary for the UK to transition to zero-emission vehicles across 100% of new car sales by 2035.
The mandate will form a key part of the UK’s ongoing effort to achieve Net Zero carbon emissions by 2050, by seeking to accelerate both production and uptake of zero emission vehicles.
At the time of its publication, the government described the mandate as ‘the most ambitious regulatory framework for the switch to electric vehicles of any country in the world’.
If its objectives are met, then 80% of new cars, and 70% of new vans sold in Great Britain will be zero emission by 2030, rising to 100% by 2035.
What does it mean for vehicle manufacturers?
The ZEV mandate requires vehicle manufacturers to gradually increase the percentage of zero-emission vehicles they sell each year, as a rising proportion of their total sales volume.
These vehicles aren’t required to be plug-in EVs. The mandate defines a ‘zero emission vehicle’ as having ‘zero CO2 emissions at the exhaust pipe, and a range of at least 100 miles’ - opening the door to innovations like hydrogen fuel cells.
For every zero emission vehicle a manufacturer sells, they will receive a set number of ZEV credits, which allow them to sell a proportional number of ICE vehicles.
The mandate holds manufacturers directly accountable for meeting the ZEV targets, with hefty fines for those who don’t comply - £15,000 for each car, and £18,000 for each van sold over the set ratio.
What are the ZEV mandate targets?
The ZEV mandate sets clear targets and deadlines for manufacturers, dictating the proportion of their sales which must qualify as ZEVs - rising each year until 2035.
UK Deadlines for new zero-emission cars:
The targets for the percentage of new car sales which must be ZEVs:
2024: 22%
2025: 28%
2026: 33%
2027: 38%
2028: 52%
2029: 66%
2030: 80%
Reaching 100% by 2035…
UK Deadlines for new zero-emission vans:
The targets for the percentage of new van sales which must be ZEVs:
2024: 10%
2025: 16%
2026: 24%
2027: 34%
2028: 46%
2029: 58%
2030: 70%
Reaching 100% by 2035…
James Fisher, Chief Executive Officer at Gecko Risk: the EV & AFV Data Specialists, explains that the government and automotive industry must work unify their approach to achieving the ZEV targets…
“Without all areas of the automotive industry being connected and committed to these targets, navigating the inevitable potholes that are emerging will become that much more difficult as time goes by.
In Gecko’s view, the new UK Government has a responsibility to be communicating with and supporting all sectors within the UK automotive industry to ensure these ambitious targets are tangible.”
Are there exemptions to the ZEV mandate?
The ZEV mandate does allow some leeway for manufacturers, in the form of both exemptions and temporary relief.
For starters, manufacturers who produce fewer than 2500 vehicles per year are totally exempt from the mandate until the end of 2029, even if they only produce ICE vehicles.
Manufacturers also have the ability to ‘borrow’ credits from future years, from overperformance in previous years, or even trade them with other manufacturers who have exceeded their requirement.
Does the 2035 mandate apply to lorries & HGVs?
While the ZEV mandate requires all cars and vans to be zero-emission by 2035, this same deadline doesn’t currently apply to heavy goods vehicles (HGVs) like articulated lorries and buses.
In 2022, the UK government did announce its intention to end the sale of all non-zero-emission HGVs by 2040, but this commitment is not included in the ZEV mandate itself.
This means there’s still some uncertainty when it comes to the phasing out of ICE heavy goods vehicles, leaving both fleets and manufacturers somewhat in the dark.
However, development and innovation of all-electric HGVs is accelerating worldwide, with the European Federation for Transport & Environment predicting they could actually be cheaper than their ICE counterparts by 2035.
What will the ZEV mandate mean for fleets?
While fleets aren’t directly responsible for meeting the ZEV targets, the mandate will undoubtedly bring huge considerations for their vehicle purchasing strategies, as well as their own low-carbon initiatives.
Here’s what the ZEV mandate means for fleets…
1 - Fewer buying options for ICE commercial vehicles
While reducing sales of ICE vehicles is quite obviously a key goal of the ZEV mandate, a palpable shortage of these vehicles on the market could hit a lot sooner than 2035…
Because of the ZEV-first approach to sales targets, manufacturers are now only able to produce ICE models if they’re able sell a proportionate number of EVs in the same year.
Even in the short-term, manufacturers simply won’t want to run the risk of overselling their ICE stock, and facing hefty fines, if they don’t know for sure they can fulfil their annual ZEV quota.
This will likely mean that new ICE vehicles become less readily available for purchase, or aren’t produced in as many models or specifications, as manufacturers turn their focus to driving ZEV sales.
For fleets, this could pose a significant challenge when it comes to renewing or replacing your existing vehicle stock, especially if you’re doing so in large numbers, and require key features or specifications.
Unless your fleet is purchasing a proportionate number of ZEVs from the same manufacturer, or they’ve already exceeded their ZEV quota, they may not be able to sell you the vehicles you need.
This challenge requires fleets to evolve their purchasing strategies, to account for increased competition in the market, actively consider ZEV alternatives, and work with manufacturers & leasing partners to navigate their obligations.
2 - Increased incentive to transition to ZEVs
On the flip side of the above point, it’s likely that the ZEV mandate will create new, attractive incentives for fleets to transition to electric or zero-emission vehicles.
The pressure on ZEV sale volumes means that OEMs and their retail partners will be looking for new ways to increase commercial uptake of their zero-emission stock. This might manifest in lower retail prices, more innovation in vehicle technology, and competitive lease/hire plans for the end consumer.
Because of the volume of vehicles that fleets tend to buy from a single partner, they’ll likely be offered even greater discounts, perks, and incentives to choose ZEVs when the time comes to renew their assets.
This will likely spark more innovation in EV battery and powertrain technology, particularly for larger load-bearing vehicles - ensuring fleets have adequate ZEV options available across all asset types.
3 - The need to accelerate EV & AFV readiness
If there’s one thing that the ZEV mandate highlights most prominently - it’s that the transition to zero emission vehicles is coming, and the deadline to get your fleet ready is drawing ever closer.
Five years ago, the switch to all-electric vehicles felt like a pipedream. Now, with solid legislation and timescales in place, it rightly sits front-of-mind for most fleets, and requires strong and decisive action for both the near future, and down the line.
It’s therefore critical that fleets prepare their operational strategies, drivers, and supply chains for their low-carbon future, and put their own objectives and timescales in place to achieve it.
This means joining the dots between your purchasing, repair, and accident management partners to ensure you can find the right vehicles for your requirements, prepare for their roll-out, and keep them running smoothly long-term.
With the transition to zero-emission vehicles now inevitable, it’s time to ensure your fleet’s entire supply chain is ready for an all-electric future - from purchasing, to driver training, charging, route planning, maintenance, and accident repair.
Transitioning your Fleet to EVs? Here are Six Key Things to Consider…
What support is available for fleets navigating the ZEV mandate?
While both the ZEV mandate, and the wider move to low-carbon vehicles, will undoubtedly prove a significant challenge, there is support available to assist fleets with their transition.
Plug-In Vehicle Grant
The Plug-In Vehicle Grant supports UK fleets in their transition to electric commercial vehicles, by facilitating attractive at-purchase discounts on eligible LCVs & HGVs.
The grant goes directly to manufacturers and resellers, and can range vastly in its volume based on the vehicle’s type, specification, and market value.
Initiatives like this equally highlight the importance of working closely with purchasing & leasing partners, in order to secure the best prices and incentives to assist your fleet’s transition.
Emissions Zones Scrappage Schemes
For fleets operating in and around major UK cities, it may be possible to benefit from cash grants and RRP discounts to assist with adapting to local emissions zones.
Initiatives such as the ULEZ scrappage scheme have seen some fleets and sole traders receive cash payments towards low-emission replacement vehicles, helping them adapt to a low-carbon future.
Electric Vehicle Infrastructure Grant
The UK’s Electric Vehicle Infrastructure Grant opened in April 2022, and provides fleet-operating SMEs with cash grants of up to 75% of the cost of electric vehicle charging infrastructure.
Fleets can claim up to a maximum of £15,000 to install sockets and EV-adapted parking spaces across a maximum of 5 sites, helping their depots and drivers adapt for the future.
How are sopp+sopp preparing for a low-carbon future?
Chris Beeby, sopp+sopp’s Business Development Director, shares some of the steps we’re taking to embrace the low-carbon future of commercial transportation…
“Now more than ever, it’s vital for fleets to ensure their suppliers have the right solutions in place to support the growing car parc of EVs…
From an accident management perspective, sopp+sopp work with some of the largest EV fleets in the UK - so we’re already experienced in addressing and overcoming many of the challenges that arise in the management of EV repair.
As well as operating and managing a network of trusted repair partners, having our owned line of AAR bodyshops help us to navigate the complexities around EV repair, and gives us that all-important first-hand understanding of the best approaches for achieving optimal outcomes, in terms of vehicle downtime and repair costs.
Our strategy over the coming years will focus on ensuring that our EV repair capability, coverage and capacity continues to drive best-in-class performance for our fleet operating customers.”
sopp+sopp: Delivering for the Future of Fleet Accident Management
sopp+sopp work with some of the UK’s best-known fleets to deliver specialist accident management services - encompassing everything from incident reporting to vehicle repair.
We’re specialists in commercial vehicle repair management - our UK-wide repair network can accommodate HGVs and LCVs of all fuel types, including EVs and Hybrids.
We share our customers’ commitment to a low-carbon future for commercial transportation. That’s why we consider EVs, AFVs, and future ZEV innovations throughout all our key process - from how we report incidents, integrate with vehicle technology, and ensure right-first-time repair and claims journeys.
End-to-End Accident Management
Our fleet-dedicated in-house teams handle the accident management process from start to finish, and keep our clients updated throughout the claims progress. This includes collecting incident reports, engaging third parties, triaging vehicle damage, engineering effective repairs, deploying vehicles, and ensuring they’re repaired swiftly & in-full.
Every step in the journey is tailored to your fleet’s unique requirement, and the specific needs of the vehicle in question - whatever its size, type, specification, or powertrain.
Partnerships with Leading EV & AFV Data Specialists
sopp+sopp work in close partnership with leading EV & AFV data specialists, GeckoRisk. This enables us to harness the latest insights to identify trends in ZEV purchasing & repair costs, and use them to help our customers get the most from their low-carbon transition.
Commercial vehicle expertise
Our triage, engineering, and repair processes are tailored to the unique requirements of commercial vehicles, and their onboard technologies & equipment.
We consider each vehicle's unique attributes and circumstances from the outset, and ensure this data is used to inform the most appropriate methods of recovery, damage assessment, and repair.
We'll consider everything from the vehicle's make, model, category, and fuel type - to the equipment and technology it has on board, ensuring we deliver a right-first-time repair journey, no matter the complexities involved.
Extensive UK-Wide Repair Network
Our UK-wide repair network caters for all vehicle types - including cars, vans, and HGVs. Whatever your vehicles’ specifications or fuel types, our repair network has the capacity and expertise to deliver swift, right-first-time repairs, including on EVs and hybrids.
FNOL & eNOL Incident Reporting
We’re committed to delivering swift, accurate incident reporting for fleets of all sizes and specifications, tailored for the specialist requirements of commercial vehicles.
Our in-house telephone FNOL team are supported by our self-developed technology, including our eNOL incident reporting application - Activate Initiate.
We recognise that quick and qualitative incident reporting is paramount to reducing claims costs, and minimising vehicle downtime. We’re constantly innovating to improve the speed, accuracy, and ease of our clients’ incident reporting processes.
Intelligent Triage & Engineering
Our triage and engineering processes are supported by our range of intuitive technologies, which help to increase the speed and efficiency of our services.
This includes intelligent triage, which uses tech integrations to identify total loss, and understand vehicles’ repair requirements from photographs provided by the driver.
Our intelligent engineering process ensures that all repairs are completed at best quality, and utilise cost-saving solutions wherever possible. This includes suggesting more effective sources for parts when they’re available - including green and aftermarket, depending on your existing repair policies.
To learn more about sopp+sopp, and our range of technology-driven fleet management solutions, get in touch with our team for a no-obligation call: