Skip advert
Advertisement

Nissan calls for urgent action on ZEV mandate

The threat to UK jobs is laid bare as fears over the impact of ZEV mandate escalate

Nissan Ariya - front

Nissan wants the Government to take “urgent action” on the ZEV (zero-emission vehicle) mandate, warning that it is unfairly penalising car makers and jeopardising investment.

The Japanese company, which operates the huge production facility in Sunderland, was among a number of manufacturers that met with Transport Secretary Louise Haigh on Wednesday to discuss a number of issues regarding the transition to electrification.

Advertisement - Article continues below

But as a statement from Nissan revealed, it is the implications of the ZEV mandate – which requires car manufacturers to sell an increasing percentage of electric cars each year – that are at the top of the agenda for most makers.

Although there are some loopholes which can be exploited – such as exemptions and the ability to trade credits – the mandate for 2024 requires 22% of each manufacturer’s new car sales to be zero emission. This will increase to 28% in 2025, and 80% by 2030. Current Society of Motor Manufacturers and Traders figures suggest EV sales will comprise only 18.5% of the market this year.

Nissan’s argument is that these targets are “outdated”, having been set when sales of EVs were rising sharply, and no longer reflect the slowdown in demand from consumers. With fines waiting for those who miss the targets, that’s now a major problem.

Skip advert
Advertisement
Skip advert
Advertisement - Article continues below

Guillaume Cartier, chairperson for the Nissan Africa, Middle East, India, Europe and Oceania (AMIEO) region, hinted that a failure to reconsider the figures and the mandate could have devastating consequences for the country. He said: “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. 

Advertisement - Article continues below

“We now need to see urgent action from the Government by the end of the year to avoid a potentially irreversible impact on the UK automotive sector.”

A specific concern for Nissan is that one way of avoiding the fine is by purchasing credits from an EV-only brand – but as no such brand actually manufactures cars in the United Kingdom, it will effectively be subsidising the EV sectors in other countries, at the expense of investment in Britain.

Among the solutions that Nissan is suggesting the Government should look at to avoid fines are a two-year “monitoring period” for 2024 and 2025, and more flexibility on borrowing credits from future years in the short term. In a statement, Nissan said: “This would allow companies to plan accordingly and ensure the UK can deliver on the 80% target by 2030, even amidst existing market headwinds.”

Skip advert
Advertisement
Skip advert
Advertisement - Article continues below

The concern that manufacturers have was underlined by SMMT chief executive Mike Hawes. He said: “The industry [has] made clear its concerns about the pace of the EV transition and the negative effect this is having on the health of the overall market and the attractiveness of the UK as a manufacturing location.

“A strong market and manufacturing base that sustains jobs and drives growth requires workable regulation backed by support for consumers – fiscal incentives and confidence that the charging network will be there when it is needed. 

“We will now work urgently with government to identify any adjustments necessary to help the industry and government meet their targets, instilling confidence in the consumer and other stakeholders, all of whom are part of this transition.”

However, despite Haigh recently saying she was “in listening mode” and open to assisting the car industry, there is no immediate indication that the Government is prepared to be flexible. Indeed, a report by the Financial Times in the aftermath of the meeting quoted an unnamed official dismissing the idea of fines being delayed until the end of 2025, saying: “This is not going to happen.”

Do you think the government should change the ZEV targets? Let us know in the comments section below...

Skip advert
Advertisement
Skip advert
Advertisement

Recommended

What cars qualify for the electric car grant? Full list with our best (and worst) picks
Electric car charging mega test - Renault 5 front angled

What cars qualify for the electric car grant? Full list with our best (and worst) picks

More than 20 electric cars are now eligible for a Government-funded discount. Which should you go for from the ever growing list?
News
15 Aug 2025
New electric cars coming soon: the fresh EVs of 2025 and beyond
Electric cars coming soon - header image

New electric cars coming soon: the fresh EVs of 2025 and beyond

The EV market is growing faster than ever, and these are the incoming cars to keep an eye on
Best cars & vans
1 Aug 2025
Used Nissan Figaro (1991-1992) buyer's guide: the ultimate stylish import
Used Nissan Figaro - front

Used Nissan Figaro (1991-1992) buyer's guide: the ultimate stylish import

A full used buyer's guide on the Nissan Figaro that was originally on sale between 1991 and 1992
Used car tests
24 Jul 2025
Hydrogen cars: are hydrogen fuel-cell cars the future?
Hydrogen pump

Hydrogen cars: are hydrogen fuel-cell cars the future?

Electric cars are entering the mainstream at full force, but do hydrogen cars also have a future on our roads?
Tips & advice
17 Jul 2025

Most Popular

Car Deal of the Day: Bag a desirable plug-in hybrid BMW X3 M Sport for less than £380 a month
BMW X3 - full width, front

Car Deal of the Day: Bag a desirable plug-in hybrid BMW X3 M Sport for less than £380 a month

The new BMW X3 is fresh out of the blocks, but you can already lease a well-specced one for an eye-opening £378 a month. It’s our Car Deal of the Day …
News
17 Aug 2025
New Suzuki Swift Allgrip 2025 review: why bother with an SUV?
New Suzuki Swift Allgrip - front tracking

New Suzuki Swift Allgrip 2025 review: why bother with an SUV?

The Swift Allgrip’s all-wheel-drive system makes this a niche option in the supermini class, but one that some customers will definitely appreciate
Road tests
19 Aug 2025
We're past the peak! New cars are growing far too complex, frustrating and expensive
Frustrating modern cars - Opinion, Dean Gibson

We're past the peak! New cars are growing far too complex, frustrating and expensive

Senior test editor Dean Gibson thinks that modern cars are becoming too complex and frustrating, signalling the end of ‘peak car’
Opinion
20 Aug 2025