Are car makers REALLY selling enough EVs to meet Labour's green targets?

By ROB HULL, MOTORING EDITOR

Updated:

Just two best-selling car makers hit the Government's binding electric vehicle sales targets in 2024, it has been revealed in the wake of calls for ministers to water down the scheme.

The Zero Emission Vehicle (ZEV) mandate was introduced two years ago to set out the pathway for the transition to cleaner cars, specifically EVs.

Some 22 per cent of all sales by major manufacturers in 2024 were required to be zero emissions, with the threat of steep fines if companies fail to comply.

The Department for Transport last year victoriously announced that every mainstream brand had avoided penalties in the mandate's first 12 months of enforcement. But new data shows most did so by using loopholes and 'flexibilities' within the policy rather than selling a viable share of EVs.

Out of the 10 most popular manufacturers, only German rivals BMW (26 per cent) and Mercedes-Benz (25 per cent) managed to exceed the 22 per cent target through electric car sales alone, Daily Mail and This is Money analysis of DfT compliance data has found.

The rest of the top 10 - like most of the industry - either relied on additional credits accrued by reducing the average emissions of their entire car ranges, 'traded' ZEV credits from other brands, or 'borrowed' credits from future years.

BMW was one of just two of the ten best-selling manufacturers to exceed the ZEV mandate requirement via EV sales alone in 2024. Of the 168,728 cars it registered, 28% were electric

BMW was one of just two of the ten best-selling manufacturers to exceed the ZEV mandate requirement via EV sales alone in 2024. Of the 168,728 cars it registered, 28% were electric

The findings come as the Society of Motor Manufacturers (SMMT) - the trade body representing car makers - has called for an 'urgent review' of the ZEV mandate in light of stalling EV demand in recent years.

But decarbonisation minister Keir Mather swiftly shot down the request last week, stating that official figures showed that the 'transition to electric is on track'.

The ZEV mandate requires major manufacturers to annually increase their share of electric car sales between now and the outlawing of new petrol and diesel models in a decade's time.

While a directive for car brands to increase the availability of EVs and promote sales, in reality it is a means of pushing Britons out of their polluting petrol and diesel motors ahead of the 2035 ban as part of Labour's wider green ambitions. 

For 2024, the mandate demanded that 22 per cent of all registrations by mainstream brands are zero emissions, but the threshold rose to 28 per cent in 2025 and for this year is 33 per cent.

In 2028, the rules demand that more than half (52 per cent) of all new cars sales are electric, and by 2030 the target jumps to 80 per cent.

Manufacturers who fail reach the required thresholds face fines of £12,000 per electric car below the required quota.

The ZEV mandate was introduced by Labour last year and threatens car makers with fines if they fail to sell an increasing share of zero-emission electric vehicles each year to 2035

The ZEV mandate was introduced by Labour last year and threatens car makers with fines if they fail to sell an increasing share of zero-emission electric vehicles each year to 2035

Which brands are selling enough EVs to hit Labour's targets? 

Analysis shows that eight of the 10 most popular car makers in Britain only complied with the ZEV mandate in 2024 by relying on CO2 reductions across their combustion-engine ranges or topping up credits by trading with high-volume EV sellers - like Tesla - or borrowing from future allocations.

VW Group - which covers not just Volkswagen but other brands including Audi, Skoda, Seat and Porsche - amassed 442,105 sales in 2024, the DfT's Vehicle Emissions Trading Schemes compliance report shows. 

However, just 71,067 of these were electric cars, which is just a 16 per cent ZEV share - some 6 percentage points below the quota. 

Stellantis, which is the second largest manufacturer in terms of UK sale volumes when inclusive of all its brands, such as Vauxhall, Citroen, Peugeot, Fiat, Alfa Romeo, Jeep and many other brands, only reached a 20 per cent share in 2024, the data shows.

BMW, on the other hand, truly exceeded the EV sales threshold. 

Of the 168,728 cars it registered in 2024, 43,423 were EVs - almost 26 per cent of all registrations, according to the DfT figures.

The department's records combined sale volumes for Toyota and its subsidiary brand Lexus, both of which have largely stuck by hybrid vehicles rather than investing heavily in entirely electric cars. Total registrations for the two reached 114,247 units in 2024, though just 10,961 were ZEVs, which is less than a 10 per cent share.

Korean brand Kia also missed the quota by some distance, falling shy by 8 percentage points with a ZEV share of registrations of just 14 per cent. That's despite the firm having various EVs on sale two years ago.

Ford, which has slipped down the new car popularity charts in Britain of late, managed just a 9 per cent share of EV registrations across its 104,982 sales, with only 9,185 ZEVs entering the road that year.

The US maker, which has recently added the Explorer, Capri and - most notably - the Puma Gen-E electric cars to its range at the time had few zero-emission options beyond the expensive Mustang Mach-E SUV.

10 best-selling car makers: Did they hit 2024 EV sales quotas? 

The ZEV mandate in 2024 required mainstream car makers to have a 22% share of zero emission vehicle sales... 

1. Volkswagen Group (incl VW, Audi, Skoda, Seat, Porsche etc) - NO (16.1%)

442,105 cars sold, 71,067 of them EVs

2. Stellantis (incl Vauxhall, Citroen, Peugeot, Fiat, Alfa Romeo etc) - NO (20%)

192,658 cars sold, 38,606 of them EVs 

3. BMW - YES (25.7%)

168,728 cars sold, 43,423 of them EVs

4. Toyota (incl Lexus) - NO (9.6%)

114,247 cars sold, 10,961 of them EVs

5. Kia - NO (14%)

108,401 cars sold, 15,195 of them EVs

6. Ford - NO (8.8%)

104,982 cars sold, 9,185 EVs

7. Mercedes-Benz - YES (24.5%)

101,822 cars sold, 24,909 of them EVs

8. Nissan - NO (12.2%)

97,822 cars sold, 11,957 of them EVs

9. Hyundai (incl Genesis) - NO (20.5%)

87,694 cars sold, 17,288 of them EVs

10. Renault (incl Dacia & Alpine) - NO (10.7%)

85,840 cars sold, 9,208 of them EVs

Source: DfT Vehicle Emissions Trading Schemes (VETS) 2024 final compliance information 

Mercedes - seventh overall by manufacturer sales in 2024 and the only car company other than BMW to exceed the mandate's threshold via EV sales alone - achieved a quarter share of ZEV sales.

Nissan (12 per cent), Hyundai (21 per cent) - which also includes the Genesis brand - and Renault Group (11 per cent) - which owns Dacia and Alpine - were also short of the ZEV quota.

How car companies use flexibilities to meet targets 

The compliance figures have revealed how car makers had avoided fines in the first year of the mandate's enforcement, despite vehicle registration figures from within the industry showing that EVs had accounted for just 19.8 per cent of all sales.

Manufacturers instead exceeded the 22 per cent threshold with CO2 reductions across their ranges accounting towards a further 4.7 per cent of ZEV credits, taking the total to 24.7 per cent.

A further 1.2 per cent of ZEV credits were added from borrowing from other brands.

The DfT's ZEV mandate compliance report shows that car makers (left column) largely failed to meet the required quota for electric vehicle sales without using flexibilities within the policy

The DfT's ZEV mandate compliance report shows that car makers (left column) largely failed to meet the required quota for electric vehicle sales without using flexibilities within the policy 

Among the other major car makers to adhere to the mandate's sales targets solely with EV sales included MG's Chinese parent company, SAIC. Some 27 per cent of its near-80,000 registrations in 2024 were zero emission cars.

Volvo also secured an impressive 35 per cent share of ZEV sales, though this was heavily supported by sister brand Polestar, which exclusively sells electric cars in Britain.

BYD, which entered the market in 2024, had a 91 per cent ZEV share of sales. However, this is based on just 8,664 registrations that year and the Chinese brand predominantly an EV brand. 

Other mainstream manufacturers to fall short was Honda (18 per cent) and Mazda with a mere 5 per cent of all sales being ZEV models. 

British car maker Jaguar Land Rover - owned by Indian company Tata - also posted one of the lowest ZEV performances with just over 4 per cent of its total sales that year. At the time, its only EV on sale was the I-Pace, which has since been discontinued as Jaguar braces to relaunch as an all-electric brand this summer.

Suzuki, which sold 22,405 passenger cars in the UK in 2024, had no zero emission models within their line-up.

Mercedes was the only other high-volume car maker bar BMW to exceed Labour's ZEV sales targets via electric models alone in 2024, the DfT compliance data shows

Mercedes was the only other high-volume car maker bar BMW to exceed Labour's ZEV sales targets via electric models alone in 2024, the DfT compliance data shows

Car makers to rely on loopholes beyond 2024

Preliminary figures for 2025 suggest a repeat performance.

While the ZEV mandate target was 28 per cent, registration numbers published by the SMMT show that only 23.4 per cent of cars sold last year were 100 per cent electric.

This points to more borrowing of credits to avoid penalties. 

The shortfall of EV sales against mandated targets comes despite manufacturers reportedly discounting EVs to the tune of £10billion to make them more appealing to customers.

Last summer's introduction of the Electric Car Grant, which slashes the price of some new battery models by between £1,500 and £3,750 before drivers even negotiate on further discounts from dealers, was also expected to boost sale volumes.

The SMMT last week called for ministers to reconsider the thresholds within the mandate, especially in light of rule makers in Europe and the US relaxing their own EV sales targets recently.

The trade body said the mandate had originally been designed to steer the transition to electric vehicles but had instead become a 'straightjacket' putting 'huge pressure' on the industry.

Chief executive Mike Hawes added: The UK's EV transition pathway was conceived with the best of intentions, but the assumptions behind it have proved over-ambitious.

'A landscape which once looked solid has turned out to be quicksand. Recognising the world of 2026 is not the one envisaged five years ago is not a retreat from ambition; it is a necessary step to achieving it.'

But ministers appear unlikely to give way and soften the targets.

The DfT said government is 'backing industry and drivers to make the switch' with the support of the ECG and 'major investment to expand the UK's charging network'.

Mather added that government would wait for the scheduled review of the policy, which is due to take place early in 2027.