Business06 January, 20263 min read
Carmakers' £5.5bn Discounts Fail to Prevent UK Missing Labour Government's 28% ZEV Mandate
This article is an automated aggregation of coverage from news outlets. Our editorials offer in-depth analysis curated by the NewsCord team.
UK new car registrations exceeded two million in 2025. Automakers spent over £5 billion on EV discounts and incentives in 2025.
5 outlets told this the same way.
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.'
“Carmakers offered about £5.5bn in EV discounts last year — averaging more than £11,000 per vehicle — a level SMMT chief Mike Hawes called ‘unsustainable,’ urging a faster review of the zero‑emission vehicle mandate and warning against mixed government signals on EV policy.”
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.
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.
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'.
“Carmakers offered about £5.5bn in EV discounts last year — averaging more than £11,000 per vehicle — a level SMMT chief Mike Hawes called ‘unsustainable,’ urging a faster review of the zero‑emission vehicle mandate and warning against mixed government signals on EV policy.”
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.
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.
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.
“Battery electric vehicle (BEV) registrations jumped 23.9% to 473,340 units, giving EVs a 23.4% market share (up from 19.6% in 2024).”