ZEV Mandate Review: What 2030 Options Mean for Finance
💡 Key Takeaway
The ZEV mandate consultation has closed, with 2030 targets of 50% to 80% on the table. Here's what it could mean for EV deals, hybrids and finance buyers.
The government's consultation on the Zero Emission Vehicle (ZEV) mandate closed on 23 October, and a decision is expected by early 2027.
It sounds like a policy story for carmakers. But the mandate has been one of the big forces behind the EV discounts and cheap finance rates of the last couple of years, so the outcome could reach your monthly payment. ⚡
Here's what's on the table and what it could mean if you're buying on finance.
What the mandate does
The ZEV mandate sets the share of new cars each manufacturer must sell as zero emission. It applies to carmakers, not drivers, so nobody is being forced out of the car they already own.
Under current law, the car targets run like this:
- 2026: 33%
- 2027: 38%
- 2028: 52%
- 2029: 66%
- 2030: 80%
For context, battery electric cars took 26.2% of new registrations between January and September this year. Manufacturers can use flexibilities to bridge some of that gap, so the headline target and what they effectively need to hit aren't the same thing.
The four options
The review, opened on 14 August, sets out four routes for cars:
- Option 1: cut the 2030 target to 70%
- Option 2: cut it to 60%
- Option 3: cut it to 50%
- Option 4: keep 80%, but extend flexibilities such as borrowing and banking credits out to 2034
Nothing here is decided yet. Any change would apply from 2027, so the 33% target for this year stays in place.
What isn't changing
Two important dates stay put under every option.
New pure petrol and diesel cars are still due to be phased out in 2030, and all new cars must be zero emission by 2035. A lower target would mostly mean more room for hybrids in the years between.
Under the 50% option, roughly one in two new cars could still be a hybrid in 2030, compared with about one in five under the current rules.
Who wants what
Opinion is split, as you'd expect.
The SMMT argues the targets are "running ahead of current consumer demand". The dealer body, the NFDA, wants a 60% target for cars in 2030.
On the other side, ChargeUK wants ministers to hold their nerve, and the Climate Change Committee has urged the government to stand firm.
What it could mean for finance buyers 💷
EV deals could stay strong into the new year, then change. Carmakers still have a 33% target to chase for 2026, so year-end pressure remains. If the 2027 target is later softened, some of the pressure behind discounts could ease.
That's a possibility, not a promise. Competition from newer brands is also keeping EV pricing sharp, and deals can move for plenty of other reasons.
Hybrids could stay on sale in greater numbers. If you're not ready for a fully electric car, a softer target would likely mean more choice for longer.
Used values are the unknown. On a PCP, your Guaranteed Future Value (GFV) is set at the start, so a deal signed today carries a lender's estimate of the car's worth in three or four years. That's right around the time these rules would be biting.
The useful thing about a GFV is that if values fall short, you can hand the car back at the end of the term, subject to mileage and condition. On HP or a loan, that risk stays with you.
Should you wait?
For most people, we wouldn't plan a purchase around a policy decision that hasn't been made.
A few practical pointers:
✅ Compare the total cost, not just the monthly figure. Include the APR, the deposit and any final payment.
✅ Check your running costs. Remember that a pay-per-mile charge for EVs is planned for 2028, on top of the usual insurance and servicing.
✅ Choose the right term. If you're unsure which way the market will go, a shorter agreement gives you a decision point sooner.
✅ Look closely at year-end offers. December registrations are often where carmakers work hardest, though offers vary by brand and model.
Talk it through
Whether you're leaning towards electric, hybrid or petrol, the best deal is one that fits your budget and your mileage, not just the headlines.
We Finance Your Asset helps drivers in Reading, Berkshire and across the UK compare their options. If you'd like a straight answer on what a car would cost you, we're happy to help.