Pressure mounts for concessions on ZEV mandate targets

Financial services group Zeus Capital has become the last voice to cast doubt over the efficacy of the government’s ZEV Mandate.

In its Quarterly Electric Vehicles Report, it said carmakers were lagging well behind the governments ZEV Mandate targets of 22% for cars and 10% for vans.

“Despite continued growth, the 16.8% share of new registrations is quite a way off the mandated 22% target that applies to vehicle OEMs for 2024.

“Private demand for BEVs remains weak due to high upfront costs and high interest rates making financing deals expensive,” it said.

“If the current legislation remains in place, OEMs will need to heavily incentivise BEV sales (through lower pricing or finance deals) or restrict sales of ICE vehicles to avoid heavy fines.

“In our view, it is likely there will be further pressure on the UK government to grant concessions to the ZEV mandate,” it said.

Cox Automotive has also suggested the final months of the year are going to be difficult as pressure falls on dealers and OEMs to pump EVs through the system with heavy push marketing.

The NFDA and SMMT have called for changes to be made.