In the wake of US 10% tariffs against the UK coming into effect today [7 April], the UK government has announced that it is pushing back the Zero Emission Vehicle (ZEV) mandate from 2030 to 2035.
The decision was made to help the British automotive industry stay competitive amid global market uncertainty triggered by the US’s blanket tariffs issued to nations across the world.
European and Asian stock markets have plunged in reaction to the tariffs, with the FTSE 100 index down nearly 6%.
The government argued that increasing the flexibility of the mandate for manufacturers up to 2030 would enable more cars to be sold in later years when demand is higher.
The government also said that in support of the EV transition, it would continue its tax break programme and to foster electric vehicle (EV) demand through supporting EV charging infrastructure rollout.
READ MORE: How potential UK retaliatory tariffs could impact the transport industry
The government outlined the major changes to the ZEV mandate as:
- Maintaining the existing phase-out dates and headline trajectories for cars and vans
- Extending the current ability to borrow in 2024-26, to enable repayment through to 2030
- Extending the current ability to transfer non-ZEVs to ZEVs from 2024-26, out to 2029, giving significant additional flexibility to reward CO2 savings from hybrids – caps will be included to ensure credibility
- Introducing a new flexibility by allowing for van to car transfer, i.e. 1 car credit will be exchanged for 0.4 van credits, and 1 van credit will be exchanged for 2.0 car credits
The UK is reportedly the largest EV market in Europe, with more than £6bn of private funding estimated to be invested in the UK’s chargepoint rollout by 2030.
UK prime minister Keir Starmer said: “Global trade is being transformed so we must go further and faster in reshaping our economy and our country through our Plan for Change.
“Today I am announcing bold changes to the way we support our car industry.
“This will help ensure home-grown firms can export British cars built by British workers around the world and the industry can look forward with confidence, as well as back with pride.
“And it will boost growth that puts money in working people’s pockets, the first priority of our Plan for Change.”
Achievements and innovations in EV charging infrastructure will be recognised and celebrated at the fourth annual CiTTi Awards on 25 November 2025 at De Vere Grand Connaught Rooms in London. Visit www.cittiawards.co.uk to learn more about this unmissable event for the UK’s transportation sector!
