Nissan has called on the UK government to relax its Zero Emissions Vehicle (ZEV) Mandate, which requires automakers to ensure that at least 22% of their new car sales in 2024 are fully electric vehicles (EVs). The Japanese automaker warned that missing this target could result in significant fines for manufacturers and urged for more flexibility, citing a slowdown in consumer demand.
The ZEV mandate, introduced by the former Conservative government, imposes strict sales requirements for EVs, with penalties for those failing to meet the target. Nissan has asked the government to allow more flexibility in borrowing credits and proposed a two-year monitoring period for 2024 and 2025 to help ease the transition during challenging market conditions.
“Missing the target would lead to significant fines for manufacturers,” Nissan said in a statement, adding that the slowdown in demand makes it difficult to meet the requirements. The company also emphasized that more flexibility would help prevent negative impacts on the industry and consumer options.
Despite an increase in the market share of battery electric vehicles in the UK, which reached 18.1% in 2024 compared to 16.3% last year, the country is still falling short of the 22% target set for this year. The decline in demand for fully electric vehicles has been attributed to factors such as the limited availability of affordable models, slow charging infrastructure rollout, rising trade tensions, and increasing competition from cheaper Chinese EV manufacturers.
Trade body representatives also warned last month that the UK may miss its ZEV target for 2024, a sentiment echoed by other global automakers, including Stellantis. In June, Stellantis cautioned that it could halt UK production unless the government takes more action to stimulate EV demand.
“The mandate risks undermining the business case for manufacturing cars in the UK, and the viability of thousands of jobs and billions of pounds in investment,” Nissan added in its statement.
