Motorists have been warned they could be forced to spend more than £1,000 on driving due to changes in the Zero Emission Vehicle mandate.
The ZEV mandate was updated earlier this month, with the sale of new petrol and diesel cars banned from 2030 instead of the previous 2035 deadline.
The changes have meant that millions of drivers will now be forced to buy an electric car earlier than planned, leading to higher costs since prices may not fall as quickly as originally anticipated.
It comes after new research by the Energy and Climate Intelligence Unit (ECIU) found that the ZEV changes have weakened the need for manufacturers to bring down the prices of EVs due to higher demand.
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Experts warned that the updates to the ZEV mandate could see more hybrids on UK roads
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Experts have warned that due to the ZEV mandate being brought forward and having certain flexibilities, including allowing the sale of new hybrid cars until 2035, car makers could be encouraged to switch their focus from selling electric cars to selling more hybrids.
Historically, hybrids have been more expensive to buy than electric cars, with research finding that the drivers could be left falling short of savings and benefits from buying an EV due to updated ZEV plans.
According to the analysis, drivers can save an estimated £1,050 when buying an electric car instead of a petrol or diesel vehicle.
This compares to just £117 a year in savings when purchasing a hybrid vehicle over a petrol and diesel car.
The ZEV mandate was changed as part of Labour’s Plan for Change promise and follows a consultation process which concluded in February.
Under the updated plans, car makers will be given certain allowances to help adhere to the changes. This includes paying only £12,000 in fines per non-compliant vehicle, compared with the previous £15,000 penalty. Other changes include allowing supercar brands such as McLaren and Aston Martin to be exempt from the 2030 target since they produce fewer vehicles.
Colin Walker, Head of Transport at the ECIU, said: “While pitched as a response to the economic chaos of Trump’s tariffs, these changes could actually make things worse, costing UK consumers.
“With less onus on manufacturers to compete to sell EVs in the UK, and the Government encouraging them to sell more hybrids instead, potentially millions of families could be left to foot a bill of up to £1050 a year for more expensive driving.”
He warned that the UK was in the “fast lane” for EV sales, despite global experts identifying the ZEV mandate as having “successfully helped British consumers make the switch to electric driving in record numbers,the Government has chosen to weaken it”.
On top of being more expensive than electric cars, hybrid vehicles are also subject to higher Vehicle Excise Duty rates, paying £195 for the first year.
This compares to the more favourable rates of £10 for electric cars for the first year, as well as the standard rate of £195 from the second tax payment.
Walker added that many EVs are already at price parity with petrol cars on the secondhand market and are “quickly snapped up when they become available”.
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The ZEV mandate was changed at the beginning of April with a new phase out date of 2030
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He added: “But these changes will mean fewer second-hand EVs available to the 80 per cent of us who buy our cars on the used market.
“Given how popular EVs are with their drivers, this looks like bad policy for families, driving up the nation’s driving bill. It also means billions of pounds of investment into the charging network is now in jeopardy, costing jobs and holding back economic growth.”
