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In a move aimed at easing the transition towards electric vehicles (EVs), the UK government has revised its Zero Emission Vehicle (ZEV) Mandate. The updates provide greater flexibility and reduced penalties for manufacturers, while maintaining the overall 2030 phase-out target for petrol and diesel car sales.
Nissan is set to launch its next generation ProPILOT technology from 2027, featuring Nissan Ground Truth Perception technology, next-generation Lidar, and Wayve AI Driver software. This announcement comes as the UK government extends the period for credit borrowing from other manufacturers to 2029, with the threshold dropping each year.
Kia, on the other hand, has announced its plan for 15 battery-electric vehicle models, with an additional target of 1.07 million 'xHEVs' (hybrids with different levels of electrification). This decision reflects the government's permitting of hybrid cars to be sold until 2035, and allowing all powertrains in vans until the same year, while reaffirming the 2030 deadline for new petrol and diesel car sales.
The revisions to the UK's ZEV mandate offer several key benefits to manufacturers. They extend the flexibility for manufacturers to earn credits by improving emissions from non-ZEV vehicles, especially hybrids, from 2026 to 2029. This effectively supports continued sales of hybrids and plug-in hybrids (PHEVs) alongside battery electric vehicles (BEVs) for a longer period.
Moreover, fines for non-compliance with the mandate have been reduced by about 20%, from £15,000 to £12,000 per non-compliant car, and from £18,000 to £15,000 for vans, lowering the financial risk for manufacturers. A new allowance enables the transfer of emission credits between car and van sales, providing manufacturers with further compliance flexibility.
However, the mandate continues to enforce increasing BEV sales quotas, with penalties for non-compliance. Manufacturers are cautioned that credit borrowing to delay compliance is risky and resource-intensive to manage.
These changes ease the transition pressure by giving manufacturers more time and options to meet the ZEV sales targets, particularly by allowing more PHEVs and hybrids to count toward their targets and by extending credit flexibility. This could lead to a relative boost in plug-in hybrid sales at the expense of full battery electric vehicles in the near term.
The revisions reflect a compromise between maintaining the UK's electric vehicle ambitions and addressing manufacturing realities and consumer demand challenges, making compliance more feasible without diluting the 2030 zero petrol/diesel sales goal.
Meanwhile, Ford has launched its Power Promise to make it easier for drivers to switch to EVs, offering a free home charger, free standard installation, an eight-year battery warranty, a free five-year service plan, and towing assistance. Kia, on the other hand, has revised its sales targets for EVs, with an annual target of 1.26 million all-electric cars by 2030 instead of 1.6 million.
References:
- BBC News
- Autocar
- Automotive World
- Gov.uk
- As technology advances and the UK government imposes stricter regulations on petrol and diesel car sales, Nissan's announcement of its next-generation ProPILOT technology and Kia's plan for 15 battery-electric vehicle models highlight the growing prominence of electric vehicles in the lifestyle sector.
- The UK government's revised Zero Emission Vehicle (ZEV) Mandate, with its extended credit borrowing period and reduced penalties for non-compliance, might lead to increased sales of plug-in hybrid vehicles and hybrids at the expense of full battery electric vehicles, indicating a shift in consumer preference towards cars with a mix of petrol/diesel and electric technologies in the near term.
