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Hybrids are here to stay
Relaxation in the ZEV Mandate to help tariff-hit British manufacturers and maintain hybrid sales post-2030
Words by: Dan Trent
Published on 7 April 2025 | 0 min read
If your eyes are already glazing over at automotive industry panic over President Trump’s tariffs and the way our own government’s Zero Emission Vehicles Mandate impacts consumer choice in the new car market we wouldn’t blame you. But if you’re in the market for a new car and wondering whether now’s the time to go electric or perhaps stick with petrol, diesel or hybrid this morning’s government announcement matters. Especially if you’re lucky enough to be looking to buy something snazzy and British-built like a Bentley, Morgan, Rolls-Royce or McLaren!
A quick recap on what the ZEV Mandate means, though. Basically, it’s a government target – enforced by huge fines – to force manufacturers to sell more electric cars in the build-up to the ban on sales of purely petrol or diesel powered models in 2030. Every year the proportion of purely battery powered cars they need to sell in the UK increases, example from 22 per cent last year to 28 per cent this year and so on. Great for pure EV brands like Tesla, or those with plenty of affordable electric models in their line-ups like MG. Not so good for brands who have been slower to electrify, some of whom have had to restrict supply of combustion-engined models for the fact they’d lose more in fines than they’d make in profit. See here for more EV facts and figures.
A quick recap on what the ZEV Mandate means, though. Basically, it’s a government target – enforced by huge fines – to force manufacturers to sell more electric cars in the build-up to the ban on sales of purely petrol or diesel powered models in 2030. Every year the proportion of purely battery powered cars they need to sell in the UK increases, example from 22 per cent last year to 28 per cent this year and so on. Great for pure EV brands like Tesla, or those with plenty of affordable electric models in their line-ups like MG. Not so good for brands who have been slower to electrify, some of whom have had to restrict supply of combustion-engined models for the fact they’d lose more in fines than they’d make in profit. See here for more EV facts and figures.
Lifeline for British luxury brands ... and hybrids
Mindful British manufacturers like Jaguar Land Rover will be hit especially hard by new American tariffs, and in response to lobbying from the UK car industry, the government has today announced another tweak to the ZEV Mandate to exempt brands with smaller production runs like McLaren, Bentley, Caterham, Morgan and Rolls-Royce entirely, meaning they’ll still be able to sell combustion-engined cars through to 2035. The rules have also been relaxed for commercial vehicles, meaning non-hybrid combustion-engined vans will remain on sale until 2035.
More relevant to the majority of car buyers is a widening of the exemption for hybrids from the 2030 cut-off. Previously, this only applied to plug-in models capable of covering meaningful distances on electric power but now includes ‘full’ hybrids, the government namechecking the Toyota Prius and (British built) Nissan Qashqai e-Power as examples. Even if the Prius is, in fact, now a full plug-in and was already compliant. This suggests the people setting the rules about which cars we can buy post-2030 are as confused as car buyers as to what counts as a hybrid, but we’ll work on the assumption it will be ‘full’ hybrids, like the Dacia Bigster we were driving recently but not ‘mild’ hybrids – often branded MHEV – that merely assist the combustion engine and can’t power the car on the electric motor alone.
More relevant to the majority of car buyers is a widening of the exemption for hybrids from the 2030 cut-off. Previously, this only applied to plug-in models capable of covering meaningful distances on electric power but now includes ‘full’ hybrids, the government namechecking the Toyota Prius and (British built) Nissan Qashqai e-Power as examples. Even if the Prius is, in fact, now a full plug-in and was already compliant. This suggests the people setting the rules about which cars we can buy post-2030 are as confused as car buyers as to what counts as a hybrid, but we’ll work on the assumption it will be ‘full’ hybrids, like the Dacia Bigster we were driving recently but not ‘mild’ hybrids – often branded MHEV – that merely assist the combustion engine and can’t power the car on the electric motor alone.
Breathing space for manufacturers, choice for consumers
Winners in this development include manufacturers electrifying their ranges with hybrids, be that luxury models like the Bentley Continental GT we were driving last week or the plug-in McLaren Artura, or more everyday brands like Mazda and Suzuki, which have added re-badged Toyota hybrids to their ranges to help them bridge the gap. Morgan will also be happy, having just announced a new car powered by a big, petrol-fuelled engine.
Losers? Arguably EV buyers, still. This for the fact electric cars with a list price of over £40,000 are now hit by the ‘expensive car supplement’ on VED (or ‘road tax’ as it’s widely known) adding hundreds of pounds to annual running costs and there has still been no movement on calls to reduce VAT on energy from public charging points to level the playing field with those who can charge at home on cheaper domestic power. More positively there has at least been an increase in choice for affordable electric cars, our latest EV number crunching revealing there are (at the time of writing) nearly 30 battery-powered models available new for less than £30,000. Even with the softening of the rules many still see the ZEV Mandate as more stick than carrot, though, and the pressure for more incentives to make the switch more affordable for car buyers will continue to come from carmakers, trade bodies and consumers alike.
Losers? Arguably EV buyers, still. This for the fact electric cars with a list price of over £40,000 are now hit by the ‘expensive car supplement’ on VED (or ‘road tax’ as it’s widely known) adding hundreds of pounds to annual running costs and there has still been no movement on calls to reduce VAT on energy from public charging points to level the playing field with those who can charge at home on cheaper domestic power. More positively there has at least been an increase in choice for affordable electric cars, our latest EV number crunching revealing there are (at the time of writing) nearly 30 battery-powered models available new for less than £30,000. Even with the softening of the rules many still see the ZEV Mandate as more stick than carrot, though, and the pressure for more incentives to make the switch more affordable for car buyers will continue to come from carmakers, trade bodies and consumers alike.
