Government extends hybrid vehicle sales to 2035 in ZEV mandate overhaul

It comes as part of the Zero Emission Vehicle (ZEV) Mandate, which will make it easier for industry to upgrade to make electric vehicles. The package will be backed by a modern Industrial Strategy.

Transport Secretary Heidi Alexander said: "Our ambitious package of strengthening reforms will protect and create jobs – making the UK a global automotive leader in the switch to EVs – all the while meeting our core manifesto commitment to phase out petrol and diesel vehicles by 2030.

"Once again, the Prime Minister’s decisive and bold actions show how we’re on the side of British business while harnessing the opportunities of the zero emissions transition to create jobs and drive growth, securing Britain’s future, and delivering our Plan for Change."

Alongside the extended hybrid sales deadline, the government will be extending the current ability to borrow in 2024-26, enabling repayment through to 2030. There’ll also be an extension in the current ability to transfer non-ZEVs to ZEVs from 2024-26 to 2029.

Additionally, it’ll be introducing a new flexibility by allowing for van to car transfer. This will see, for example, one car credit being exchangeable for 0.4 van credit, while one van credit can be exchanged for two car credits.

ICE vans, meanwhile, will be allowed to be sold until 2035 – alongside full hybrids and plug-in hybrid vans.

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