10:30 pm, April 6, 2025
Hybrid cars WILL be allowed to be sold until 2035, the government has announced, as part of a package of changes that also includes a reduction in ZEV Mandate fines.
The government’s two-month-long consultation into the ban of the sale of new petrol and diesel cars in 2030 has confirmed this date will stay, but has also given clarity over hybrid cars.
Full-hybrids such as the Toyota Prius, plug-in hybrids like the Ford Kuga PHEV, as well as Nissan’s innovative e-Power system in its Qashqai SUV, will be allowed to be sold between 2030 and 2035.
In a document published on Sunday night (Apr 6), the government also confirmed that from 2030 carmakers will have to make sure that overall CO2 emissions from petrol and diesel cars is 10% lower than it was in 2021.
The changes only apply to cars, with the rules around vans remaining in place. Petrol, diesel, hybrid and plug-in hybrid vans will be allowed to be sold until 2035.
To support micro and smaller car manufacturers such McLaren, Aston Martin, Bentley, Lotus and Caterham, these firms will be exempt from the 2030-2035 hybrid requirements, with small volume manufacturers (as opposed to micro volume manufacturers) being required to meet a ‘nominal’ reduction in CO2 across their fleets after 2030 ‘which will be agreed with them’.
The government has also looked at the fines imposed on carmakers who fail the zero-emission-vehicle quotas set by the ZEV Mandate.
From this year, the fine will be cut from £15,000 to £12,000 on every car and from £18,000 to £15,000 on every van.
In a move to appease Ford, Stellantis and Nissan, the government has introduced a way for manufacturers to transfer excess credits between cars and vans if they build both.
For example, should a manufacturer overachieve against the car targets but under-deliver with vans, it can transfer those excess car credits to its vans to achieve compliance with the ZEV Mandate.
Meanwhile, the rules for non-ZEV to ZEV transfer have been extended.
Carmakers who were unable to sell enough EVs due to their product ranges were able to bank credits for future years, as long as they demonstrated CO2 emissions across their fleet were being cut to 2021 levels.
This flexibility was due to end in 2026, but it will now be extended to 2029.
Also extended to 2029 is the opportunity for carmakers to borrow credits from the future so they can repay current underachievement with the ZEV Mandate target in one year by overachievement in another. The government says this will support JLR and Nissan.
However, the government stopped short of introducing incentives on new EVs and slashing VAT on public charging, despite the Society of Motor Manufacturers and Traders and other motor industry voices calling for them.
Energy secretary Ed Miliband said: ‘It is very important that the government has strengthened our commitment to our world leading EV transition plan.
‘This plan will benefit UK consumers by expanding the market for cars that are cheaper to run. And it will support our domestic manufacturing so we can seize this global opportunity.’
What the industry says
Hybrids can’t compete
Hybrid technology may have been a game-changer two decades ago, but it’s looking increasingly outdated in today’s car market.
The record EV sales in March show that UK drivers are embracing the benefits of going electric – lower running costs, a smoother, quieter driving experience, and cleaner air in our towns and cities. Hybrids simply can’t compete.
I believe increasing numbers of buyers will see them for what they are – a compromise from a previous era, no longer fit for purpose in the age of cleaner, more compelling alternatives. Carmakers that continue to push this legacy technology risk becoming the Kodak of the car industry.
Motoring journalist and founder of Electrifying.com, Ginny Buckley
No.10’s recognition that UK is a major EV player welcomed
We understand the pressure British carmakers face and welcome the government’s declaration of support.
While we don’t agree that hybrids mainly powered by a combustion engine should be included in the ZEV mandate until 2035, we do understand the reasons why, along with increased flexibilities until 2029.
What we do want to highlight very clearly is the government’s recognition that Britain is now a major player in the global electric car sector and that there are tremendous opportunities to create GDP, skills, jobs and economic activity.
We have been saying this for years, but for Number 10 to now declare that this is a critical moment in Britain’s ambitions to become one of the most successful and creative EV markets in the world is a mighty step forward.
Quentin Willson, founder of EV advocacy group FairCharge
These measures aren’t enough
The government have gone some way to supporting the industry with the ambitious ZEV mandate targets by relaxing flexibilities and allowing hybrid sales to contribute to targets. However, the measures are still not enough.
There are more new and used EVs than ever on sale now increasing the choice and affordability of the cars, but at this critical moment for the global economy ministers should underpin consumer demand with tax breaks, such as cutting VAT on public charging.
Ian Plummer, commercial director, Auto Trader
Flexibilities welcomed – Stellantis
We welcome quick and decisive action from the government with the policy adjustments to the ZEV Mandate providing clarity and more certainty on the path to 2030 and beyond to 2035, and await full details.
With the challenging geopolitical operating environment and increased intense pressure on automotive industry, extending the current flexibilities, and the introduction of new ones helps Stellantis in continuing to be compliant. We are playing our part in the transition, launching desirable EVs at competitive prices. We have 32 on sale today and eight more to launch this year.
Whilst more people are moving to electric, it’s not yet at the pace of the ZEV Mandate. We welcome the flexibilities to allow our customers more freedom of choice. However, there is still a need to address market demand and introduce measures to stimulate it. We will continue to work closely with government on this.
Eurig Druce, UK group managing director, Stellantis UK
Help is needed to stimulate demand
Today’s announcements are a pragmatic step forward which we hope will help manufacturers and give confidence to drivers. The inclusion of hybrids can act as a stepping stone to help those not yet ready to make the full switch to electric.
Our consistent message to government is more needs to be done to make EVs accessible for everyone. Generally, drivers are hesitant, but most are not hostile to the change.
Help is needed to stimulate demand for EVs including broader fiscal incentives. Drivers still raise concerns about cost of purchase, cost of charging and availability of chargers. Range anxiety itself is a thing of the past as AA breakdown figures show only 1.85% of all EV breakdowns are due to running out of charge compared to approximately 1% of ICE vehicles running out of fuel.
Edmund King, AA president
Story first published 22:30, Apr 7
Updated: 10:55, Apr 8
