Carmakers' £5.5bn Discounts Fail to Prevent UK Missing Labour Government's 28% ZEV Mandate

Carmakers' £5.5bn Discounts Fail to Prevent UK Missing Labour Government's 28% ZEV Mandate

06 January, 20265 sources compared
Business

Key Points from 5 News Sources

  1. 1

    UK new car registrations exceeded two million in 2025.

  2. 2

    Automakers spent over £5 billion on EV discounts and incentives in 2025.

  3. 3

    Battery electric vehicles captured 23.4% of new-car sales, missing the government's EV target.

Full Analysis Summary

UK EV discounts and targets

UK carmakers offered roughly £5.5bn in electric vehicle discounts last year, averaging more than £11,000 per vehicle, yet those incentives were insufficient to meet the government's 28% zero-emission vehicle (ZEV) sales target for 2025.

Upday News reports EVs made up 19.6% of new-car registrations in 2024 and says manufacturers relied on heavy discounting to drive sales.

SMMT chief Mike Hawes called that level of discounting 'unsustainable.'

Car Dealer Magazine records EV market share rising to 23.4% in 2025 but highlights that credits and mandate mechanisms reduced the practical requirement to about 20.4%.

The Daily Express cautions that mixed government signals and policy uncertainty risk undermining future uptake and investment, suggesting discounts alone did not bridge the policy and market gaps.

Coverage Differences

Tone and emphasis

Upday News (Western Mainstream) emphasizes the shortfall against the 2024/2025 goals and quotes SMMT’s warning that discounting is “unsustainable,” Car Dealer Magazine (Other) focuses on the data showing a year‑on‑year rise to 23.4% in 2025 while explaining how credits reduced the effective mandate, and Daily Express (Western Tabloid) highlights industry alarm about mixed government signals and potential policy measures like an EV‑specific tax.

UK new-car EV market

Market-level data across sources shows growth in overall registrations but a mixed picture for EV share.

Car Dealer Magazine reports the new-car market exceeded two million registrations in 2025, rising to just over 2.02 million.

The magazine says BEV registrations jumped 23.9% to 473,340 units for a 23.4% share, up from 19.6% in 2024.

Upday News cites the lower 19.6% EV share for 2024 and frames that as below the government's goals.

Daily Express provides fuel-type breakdowns: petrol 46.4%, diesel 5.1%, and hybrids 13.9%.

It also notes Chinese marques reached 9.7% of the market, underscoring broader shifts affecting EV competitiveness.

Coverage Differences

Narrative focus

Car Dealer Magazine (Other) stresses the headline growth figures and frames 2025 as a milestone year for registrations and EV uptake, Upday News (Western Mainstream) highlights the 2024 shortfall versus targets to argue uptake is insufficient, and Daily Express (Western Tabloid) concentrates on detailed fuel‑type shifts and market winners that contextualize EV performance.

Industry views on EV policy

Industry voices portray discounting as a stopgap that cannot substitute for clearer, consistent policy.

Upday News and Car Dealer Magazine quote SMMT chief executive Mike Hawes calling the level of discounting 'unsustainable'.

Car Dealer adds that Hawes described the two million registration figure as a 'reasonably solid' result amid headwinds while warning that EV uptake is 'too slow'.

The Daily Express echoes OEM complaints and quotes Stellantis' UK MD Eurig Druce saying the UK is 'falling out of step with Europe' and urging an early review.

It warns that policy confusion, including talk of an EV-specific tax, could deter investment.

Coverage Differences

Quotation vs reporting

Car Dealer Magazine and upday News both quote SMMT chief Mike Hawes directly calling discounting “unsustainable,” presenting industry self‑critique; Daily Express reports comments from manufacturers’ representatives (Eurig Druce) and frames the issue as a risk from government uncertainty and possible tax proposals rather than solely an industry problem.

ZEV mandate and credits

The ZEV Mandate’s design and the use of credits are central to why headline targets did not translate to equivalent practical requirements.

Car Dealer Magazine explains that although the government’s ZEV Mandate set a 28% target for 2025, the Energy and Climate Intelligence Unit estimated manufacturers only needed about 20.4% in practice to avoid penalties because credits for lower-emission petrol and diesel sales reduced the effective obligation.

Upday News notes targets of 22% in 2024 and 28% for 2025 and flags calls for a faster review of the mandate.

Daily Express says the mandate’s flexibility and mixed signals have left industry leaders urging certainty before tougher 2026 targets.

Coverage Differences

Technical detail vs policy emphasis

Car Dealer Magazine (Other) provides the technical explanation (credits reducing practical requirements to ~20.4%), upday News (Western Mainstream) foregrounds the missed target numbers and SMMT calls for mandate review, and Daily Express (Western Tabloid) stresses how mandate ambiguity and political talk (including an EV tax) could imperil future targets and the 2030 ban.

EV market and policy outlook

Implications are mixed and reflect each source's perspective: the story is one of real growth but persistent policy and market frictions.

Car Dealer Magazine frames 2025 as a step forward, projecting the likely second-largest EV market in Europe and an EV market share rising to 23.4%, yet it also records the mandate's loopholes and the unsustainability of deep discounting.

Upday News stresses that despite the government's £7.5bn support package and the 2030 end to petrol and diesel sales, EV rollout remains falling short of targets, while the Daily Express worries that mixed signals, potential taxes, and rising 2026 requirements could threaten the 2030 ban unless clarity and consumer education improve.

Coverage Differences

Outlook and emphasis

Car Dealer Magazine (Other) offers a cautiously positive data‑driven view of growth and Europe ranking, upday News (Western Mainstream) emphasizes the shortfall against government targets and policy responses, and Daily Express (Western Tabloid) adopts an alarmed tone about political signals and the risk to the 2030 ban.

All 5 Sources Compared

BBC

Electric car discounts are unsustainable, says industry group

Read Original

Car Dealer Magazine

New car market topped two million in 2025, but EV discounts can’t continue – SMMT

Read Original

Daily Express

Disaster for Labour as it falls way short of EV sales target despite huge discounts on car

Read Original

El-Balad

EV Discounts Unsustainable Despite 2m New Car Sales Surge, SMMT Warns

Read Original

upday News

£5.5bn in carmaker discounts can't save UK from missing EV target

Read Original