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The UK’s zero-emission vehicle (ZEV) mandate is scheduled for review. But with other countries amending their policies, will the UK’s targets be amended sooner, or later? Autovista24 special content editor Phil Curry reports on SMMT Electrified 2026. The UK automotive industry needs a review of the ZEV mandate, otherwise it could fall behind in the electrification race. That was the main message from the recent SMMT Electrified conference. Held in London’s QEII Centre, the event brought together automotive industry executives, regulators and suppliers. They discussed the current state of the UK’s electric vehicle (EV) market. The conference followed shifting emissions policies in Europe and the dropping of mandated targets in Canada. Meanwhile, the UK Government remains committed to the ZEV mandate. This is despite overall battery-electric vehicle (BEV) registrations failing to meet the 2024 or 2025 targets. The cost of reaching targets The ZEV mandate calls on carmakers to meet an increasing share target of zero-emission models in their annual registrations. It first came into effect in 2024, with a 22% requirement for passenger cars. This increased to 28% for 2025, while the target is 33% next year. This increases annually, reaching 80% by 2030. However, the biggest jump in the requirement comes between 2027 and 2028, with a 14 percentage point rise in the target, to 52%. The Department for Transport (DfT) released a report on the morning of the conference. It highlighted that all carmakers had complied with the ZEV mandate in 2024. Manufacturers had used conversion flexibility, while also borrowing future credits, with some banked for future years. However, SMMT chief executive Mike Hawes highlighted the costs that the industry faced in meeting ZEV mandate targets. ‘Non-compliance is not an option, but compliance comes at a massive cost,’ he told journalists, including Autovista24, during a press conference prior to the event. ‘In the first two years of the mandate, carmakers have spent up to £10 billion (€11.6 billion) in discounting on BEVs. That is in addition to the billions spent on new products, new technologies, and so forth. SMMT chief executive Mike Hawes ‘In 2025, the average discount on a BEV model was £11,000. However, the payment for non-compliance to the ZEV mandate is £12,000 per model. Compliance comes with a tremendous cost, either in incentives, fines, or the need to purchase trading credits. ‘Therefore, while the DfT report shows that carmakers have met the requirements of the mandate in 2024, compliance does not necessarily mean that the mandate is deliverable,’ he stated. Further ZEV mandate challenges One issue impacting BEV uptake appears to be costs for consumers. The technology has long been touted as a more affordable alternative to petrol and diesel in terms of use. However, there is often a cost difference between charging domestically and using public plug-in points. In addition, the implementation of vehicle excise duty (VED) last year increased costs. A pay-per-mile scheme, known as eVED, for BEVs and plug-in hybrids was also announced in 2026. This is set to be introduced in 2028, at a point when the ZEV mandate target is set to jump. For carmakers, this could be a problem. The affordability of BEVs will be reduced, but the requirement for carmakers will leap forward. ‘Additionally, the flexibilities introduced last year will expire from 2029,’ added Hawes. ‘I do not know of anyone in the industry who thinks we will get to 80% of ZEVs by 2030. Beyond that, we still have a lack of clarity. ‘We have neither the regulation nor the certainty about exactly which technologies can be sold. But what we do know is the gap between ambition and demand is too great. The UK's attractiveness, not just as a market, but as a manufacturing location, evaporates. De-carbonisation, if we get this wrong, can mean de-industrialisation.’ Good intentions of the ZEV mandate Hawes stated that the UK’s automotive industry is committed to reducing emissions and working towards net-zero. ‘But sometimes, to reach a destination, you have to take a diversion. When the facts change, you have to adapt,’ he continued. ‘When the ZEV mandate was conceived, the world was a different place,’ Hawes stated. In line with statistics published by the SMMT during the event, he outlined that battery costs were 30% higher in 2025 than anticipated in 2021. Meanwhile, BEVs were 17% more expensive within the same timeframe. In addition, industrial energy costs were 80% higher than expected, Hawes stated. The costs of public EV charging at 50kW points were 120% higher than thought when the ZEV mandate was first discussed, he added. ‘We need it reviewed now and resolved now. Without change, the sector, the economy, mobility and decarbonisation itself are in jeopardy. So, government needs to be bold enough to lead the change to make sure that we have a system that is fit for the future,’ he concluded. Carmakers back early review The ZEV mandate issue remained a constant throughout SMMT Electrified 2026. Carmakers in attendance also backed the need for a review of the current strategy. ‘The ZEV mandate needs to be more aligned to where consumer demand is. Investment is so heavy in the market, then some of the vehicles sold will be loss-making. If you are in that scenario, and you are forced to increase supply as the ZEV mandate does, then that calls investments into question,’ highlighted Eurig Druce, SVP, group managing director at Stellantis UK. ‘If you cannot make a return on investment in a country, then the ability of a company to invest and create the growth that the government is looking for is absent. Therefore, we need to make some quick decisions, and a review next year is too late. We need a review now, to help us make the right decisions on investments,’ he continued. From left to right: Patrick McGillycuddy, managing director at JLR UK, Richard Finchett, deputy managing director at Toyota Manufacturing UK, Nicole Melillo Shaw, Managing Director at Volvo Car UK, Eurig Druce, SVP, group managing director at Stellantis UK But while development of BEVs continues, the route of discounting is not one that carmakers want to be going down. ‘We put a lot of investment into developing and building the advanced technology in BEVs. The last thing anyone wants to do is bring out a car with that much investment, and then start discounting from the beginning. It is unsustainable. So I think we need to make sure that we are allowing for demand to catch up with supply,’ pointed out Nicole Melillo Shaw, managing director at Volvo Cars UK. A different approach Patrick McGillyCuddy, managing director at JLR UK, further underlined the issue of confusion among consumers. ‘We have a very ambitious ZEV mandate, and then we have the eVED, which is proposed to come at a critical time in that journey,’ he said. ‘This causes confusion, and consumers will hesitate. Then we hesitate, and you get an uncertain environment. We produce most of our vehicles in the UK for global export, therefore we have to recognise that different parts of the world are moving at a different pace,’ he added. Ford Motor Company chair and managing director, Lisa Brankin, also brought up the issue during a candid fireside chat. ‘When it comes to a review, the government needs to consider the customer in two areas. They need to knock down the barriers to entry, but also understand and prevent confusing messages. ‘Last year, for example, we had the launch of the Electric Car Grant incentive scheme. That helped drive sales forward. But a few months later, there was the announcement of eVED. The two messages did not align, so the government really needs to be mindful of what it is saying if the end goal is electrification,’ she said. Failure from success Brankin also highlighted how the ZEV mandate directed focus away from Ford’s achievements in 2025. Instead, it suggested failure in the company’s performance, she explained. From left to right: Lisa Brankin, chair and managing director, Ford Motor Company, Katie Derham, host and broadcaster ‘Our sales grew by 20% in 2025, which was a great success. But we count it as a failure as we got to just under 24% of the fleet being ZEVs, when the target in the mandate was 28%. We are moving in the right direction, but not meeting targets,’ she stated ‘We have invested heavily in our facilities in Europe to build EVs, but we are having to discount heavily to meet targets. We may also be forcing people into vehicles that maybe they do not necessarily want, or maybe are not appropriate for them,’ she said. Brankin also pointed to the changes in other ZEV policies that have taken place around the world. ‘Canada has made a change, and our closest partners in the EU have already made adjustments. That was carried out in a matter of months rather than over a longer period. So, I would say to the UK government to get on with it, start the review, decide, and make the announcement this year,’ she continued. Government committed to 2027 ZEV mandate review Taking to the stage at SMMT Electrified 2026, Keir Mather MP, minister for Aviation, Maritime and Decarbonisation, spoke of the success of the UK’s EV market. He highlighted that the country had the largest BEV share of Europe’s major economies, as a result of ambition, partnership and investment. Autovista24 analysis shows that in 2025, the UK saw its BEV share reach 23.9%, with 473,348 units. While this share was higher than the 19.1% achieved in the closest market, Germany, the volume of BEVs was lower. In 2025, the country saw 545,142 units delivered. Mather also stated that the EV transition in the UK is being backed by tens of billions of pounds in public and private investment. But he acknowledged that the ZEV mandate is potentially a challenge for the industry. ‘Is [the ZEV mandate] ambitious? Yes, of course it is, and we as government are committed to giving you the tools you need to make it happen. The industry successfully complied with the 2024 target, using the flexibilities built into the mandate, and provisional 2025 data also looks promising,’ he commented. ‘We are committed to publish a review of the mandate early in 2027, and we are listening, and we are engaging with stakeholders across the industry.’ When asked about the potential for an early review, as called for throughout the conference, Mather stated: ‘Work on the review needs to begin this year. But early 2027, we feel, is the right point to make sure that we can see properly where the pressure points lie in this ZEV mandate and make sure that it continues to work for manufacturers.’

Which new battery-electric vehicle (BEV) and plug-in hybrid (PHEV) models recorded the greatest sales volumes in 2025? How did regional dynamics dictate the best-seller tables? Autovista24 editor Tom Geggus unpacks the data. Following two years of global new PHEV sales growth outpacing all-electric cars, 2025 saw BEVs surge ahead. With 13,697,372 units taking to roads around the world, the powertrain recorded year-on-year delivery growth of 26.7%. This is according to the latest data from EV Volumes. Meanwhile, PHEV deliveries slowed to an increase of 11.1%, down significantly from the 55.2% acceleration in 2024. Last year saw 7,217,499 plug-in hybrids making their way to customers. Much of this came down to China’s slowing PHEV market. The country was responsible for 70.3% of the powertrain’s sales, meaning declining results impacted the global market. In contrast, Spain saw triple-digit sales growth for the technology, but it made up a far smaller global share of just 1.8%. Between the two, the US made up 4.6% of the world’s PHEV market, with sales up 4.8%. Then came Germany with 62.5% growth and a 4.3% share. The UK had the fourth largest PHEV market, accounting for 3.1% of sales globally. The country saw deliveries increase by 34.5%.   The slowdown was highlighted by an increase in December’s global volumes of just 0.9%, as 758,073 sales were recorded. BEVs bounce ahead In contrast, China saw its BEV market pick up speed last year, with growth reaching 27.6%. Despite a smaller portion of global sales compared to PHEVs, it still dominated global deliveries at 59.1%. This was still far ahead of the next biggest market, the US, which saw sales fall by 3.9%. In total, 8.7% of all-electric car sales took place in the country. Given China’s slowing EV market and emissions regulation changes in the US, the dynamic of the global EV sector could shift in 2026 and beyond. Germany followed with 4% of the global BEV market as sales increased by 43%. The UK was 0.5 percentage points (pp) behind with a 3.5% share as sales increased by 24.2%. France saw all-electric sales increase by 13.6% as it made up 2.5% of all-electric deliveries. In December, BEVs managed a global increase of 12.4%, as 1,376,827 units made their way to customers. Best-selling BEV: Tesla Model Y The Tesla Model Y was the world’s best-selling BEV of 2025. With new variants and designs launched, it was the only electric vehicle (EV) to exceed the one-million delivery mark. In total, 1,085,521 units made their way to customers as it retained the market lead it has held since 2022. However, within an increasingly competitive space, the model saw its sales fall by 7.5% year on year. This meant its market share shrank from 10.9% in 2024 to 7.9% last year. Most of the Model Y’s sales in 2025 took place in China. Given the country’s greater EV market development, this should come as little surprise. However, the US was only 9.2pp behind, with 30% of the model’s overall sales taking place there. Behind these two formidable markets came South Korea, Turkey and Canada, representing 4.6%, 2.9% and 2.6% of the BEV’s sales. The Tesla Model Y was helped by a strong December. 129,650 units were sold in the month, boosted by its traditional quarterly reporting period. This was, however, 4.3% down year on year. Tesla takes second as China dominates The second-best-selling BEV last year had four things in common with the market leader. It was another Tesla, it saw updates in 2025, it retained its position from 2022 onwards, and its deliveries fell. The Tesla Model 3 saw sales decline by 5.5% to 499,685 units in 2025. This meant its market share dropped by 1.3pp to 3.6%. The Model 3 saw 40.1% of its sales take place in China. But once again, the US was only 9.1pp behind at 31%. The all-electric sedan saw positive uptake in the UK, with 3.1% of its deliveries occurring in the market. In December, the Model 3 placed second thanks to Tesla’s quarterly reporting. It achieved 55,198 sales, a 5.6% dip year on year. The Geely Geome Xingyuan, also known as the EX2 in some locations, ended the year in third. A relative newcomer in the BEV market, it first recorded sales in September 2024. It saw a marked increase of 800% to 473,948 units as its market share jumped by 3pp to 3.5%. While the Tesla Model Y and Model 3 each recorded sales across more than 75 markets, the Xingyuan contrasted heavily. It only posted deliveries in four markets, China, Brazil, Mauritius and Colombia. However, the latter three markets noted relatively minimal sales compared to China. It saw 99.5% if its sales take place domestically. The model is scheduled to enter major European markets in 2026. The Geome Xingyuan saw 43,185 sales in December alone, as it increased volumes by 161.9% year on year. This capped an impressive first full year on sale for the Chinese BEV. Eight Chinese BEVs in top 10 The Xingyuan began an avalanche of BEVs from Chinese carmakers. Eight of the top 10 in the best-sellers list came from the country. The Wuling Mini was fourth as it saw sales climb by 65.3% to 431,779 units. This gave it a market share of 3.2%, up from 2.4% in 2024. The BYD Seagull, also known as the Dolphin Surf in some markets, took fifth. However, its sales fell by 13.3% to 409,550 units. This took its share down by 1.4pp to 3%. The Xiaomi SU7 came sixth as its market share increased by 0.6pp to 1.9%. This was thanks to year-on-year sales growth of 85.3%, reaching 258,824 units. With a similar 84.2% rate of growth, the BYD Yuan Up, also known as the Atto 2, recorded 252,441 deliveries. Its share climbed by 0.5pp to 1.8%. The BYD Dolphin saw a 4.6% rise in sales to 227,352 units. Even though this was a better volume than in 2024, greater competition meant the BEV saw its market share shrink. It accounted for 1.7% of all BEV deliveries, down from 2%. The BYD Yuan Plus, also known as the Atto 3, saw sales decline by 33.7% to 225,133 units. This resulted in a 1.5pp decline in share to 1.6%. In 10th, the Xpeng M03 enjoyed a 264.7% sales increase to 177,150 units. Its grip on the market increased to 1.3% from 0.4% in 2024. Best-selling PHEV: BYD Song Plus While BYD was able to capture four of the top-10 best-selling BEV positions, it excelled in the PHEV market. In total, it claimed seven of the best-selling slots in the year, including first place. The best-selling PHEV in 2025 was the BYD Song Plus, known in some markets as the Seal U. This extended its winning streak, after it claimed the title in 2024. Last year it recorded 328,094 sales, taking 4.5% of the market. However, like the majority of BYD’s PHEVs in the top 10, it saw its deliveries fall compared with 2024. Its volumes declined by 9.8%, while its share was eroded by 1.1pp to 4.5%. At 50.8%, the Song Plus saw over half of its sales take place in China. Single-digit shares were recorded in 49 other markets. This included Turkey, Mexico, the UK and Brazil, accounting for 7.8%, 7.5%, 6.3% and 5.5% of its sales respectively. The end-of-year success came despite a fall in monthly performance. It ended December in fifth, with 22,226 units delivered, a 49.1% year-on-year decline. Qin Plus takes second In comparison, the Qin Plus was the second-most popular PHEV of 2025, but only recorded sales in 10 countries. China accounted for the vast majority of its deliveries at 96.2%. Globally, its volumes declined by 15.9% to 292,572 units. This meant it took a 4.1% market share, down 1.3pp. The model still topped the PHEV chart in December, thanks to 40,818 deliveries, a 30.1% increase compared to the same month in 2024. The BYD Song Pro took a marginally larger fall. Its share stumbled by 1.4pp to 3.2% as its sales decreased by 22% to 231,143 units. While China accounted for 78.2% of its sales, Brazil managed 10.5%, followed by Mexico at 4%. Highlighting the Song Pro’s struggles, it ended December in fourth, with its 24,070 sales down by 26.4%. The BYD Seal 6 took fourth in the global PHEV top 10 at the end of 2025. Its sales increase by 3.1% to 206,136 units. This made it one of two BYD models in the top 10 to achieve this positivity. However, this was not enough to stop its market share from slipping. It accounted for 2.9% of all PHEV sales last year, down from 3.1%. The first non-BYD model in the top 10 was the Li Auto L6 in fifth. It saw sales drop by 13.2% to 166,965, taking a 2.3% share, down 0.7pp. The BYD Qin L took sixth with a 2.3% grasp on the market. This reflected a drop of 1.2pp as sales slowed by 29.1% to 162,817 units. The BYD Destroyer 05 took seventh in 2025 even as its deliveries dropped by 32.7% to 150,677 units. Its share also took a downturn, hitting 2.1% from 3.4% in 2024. Share increases possible The top seven highest-performing PHEVs in the world all saw their grip on the market weaken in 2025. However, this was not the case throughout the top 10. After first recording sales in April 2025, the Aito M8 claimed a share of 2.1% with 148,934 deliveries. The BYD Song L came ninth, as its share increased to 2% from 1.9% in 2024. The model’s volumes increased by 16.8% to 142,301 units, the only other BYD to achieve this in 2025’s top 10. The Galaxy Starship 7, also known as the Starray, first recorded sales in November 2024. Across 2025, its deliveries soared by 512.8% to 126,461 units. This meant its market share climbed by 1.5pp to 1.8%. While the global PHEV market slowed in December, two models saw impressive performances in the last month of the year. The Fang Cheng Bao Tai 7 ended the month second in the PHEV table. It saw 34,086 sales, accounting for 4.5% of the global total. Meanwhile, the Aito M7 placed third with 26,468 deliveries. This was a 97.3% year-on-year improvement, the best result in the top 10. This gave it a 3.5% market share, up from 1.8% recorded a year prior.