UK manufacturers meet ZEV mandate targets for 2025
Wed 07 January 2026
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The UK's Zero Emission Vehicle (ZEV) mandate targets for 2025 were met, according to analysis from New AutoMotive. Manufacturers were able to avoid fines through the ZEV credit system, which enables manufacturers to offset lower EV sales by exceeding targets on sales of PHEVs (plug-in hybrid electric vehicles) and hybrids.
Electric vehicles (EVs) claimed a 23.4% UK market share in 2025, with 477,317 registrations, enabling all manufacturers to avoid ZEV mandate fines, according to analysts New AutoMotive.
Total UK battery electric car registrations hit almost half-a-million and almost twice the volumes seen before the policy came into force.
EVs were the most popular fuel type in December 2025, accounting for 32.7% of all new UK registrations, ahead of hybrids (28.6%), petrol cars (23.9%), PHEVs (10.7%) and diesel cars (4.2%). PHEVs were the fastest-growing of all fuel types in 2025, with registrations up 29.5% year-on-year.
During 2025, EV registrations grew by 21.6%, while petrol car registrations declined by 22%.
Vicky Edmonds, CEO at EVA England, said: “It’s been another strong year for EVs as nearly one in four went full electric, and over a third in December alone.
“This shows that confidence is growing and support measures are working. It is crucial now that we build on this progress and ensure all drivers are properly supported to make the switch."
The ZEV mandate has helped to secure the UK’s position as a global ZEV frontrunner ahead of major European markets where EVs made up 17.3% of new car sales across the EU, but still behind leading markets like Norway (96%), Vietnam (42%) and China (30%).
According to T&E, the Brussels-based NGO, the ZEV mandate is clearly separating the winners from the laggards. T&E said that Ford was able to meet its target without the use of flexibilities, while some manufacturers including JLR and Lexus needed to rely heavily on PHEVs to meet their targets.
The UK motor industry trade association (SMMT) said that the market for EVs remains very competitive and that some manufacturers were able to meet their 2025 ZEV mandate targets only as a result of heavy price discounting which SMMT says is unsustainable.
Image courtesy T&E
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