Electric Car Mandates Start To Bite

From NOT A LOT OF PEOPLE KNOW THAT

By Paul Homewood

Car manufacturers must ensure that electric cars make up at least 33% of their total registrations this year or face swingeing government fines of £12000 for every car they are short.

So far, they are struggling at below 22%, which is even less than at the same stage last year. They finished 2025 at 23.4%, well below the government Zero Emission Vehicle (ZEV) mandated target of 28%. The harsh reality is that few private buyers want one, despite what the government orders.

Manufacturers who fall below target may be able to offset part of their shortfall if the CO2 emissions from non-electric cars are below the baseline set, for instance if they sell a lot of hybrids. But this is a limited option. They can also buy surplus ZEV allowances on the open market or “borrow” against future surpluses.

The Dept of Transport has now published the full overview of ZEV compliance for 2024 registrations, when EV sales reached 19.8% against a target of 22%. Overall, credits from lower emissions have balanced out the 2.2% shortfall.

But as ever, the devil is in the detail, with some manufacturers forced to buy surplus allowances or borrow, while others make a handy profit.

According to the DfT overview, major manufacturers who have had to buy ZEV allowances include:

That’s over 43000 allowances. According to the DfT, the average price was around £4000, making a total bill of around £170 million.

But it does not stop there.

The principal beneficiaries of this car industry destroying madness have been Tesla and the three major Chinese electric carmakers. Together they have been handed a windfall of around £150 million.

This is, however, just the tip of the iceberg.

Auto industry experts say that the market for ZEV allowances was soft in 2024, given the overall availability of allowances. Carmakers with surpluses have been tempted to cash in now, rather than risk holding out for a higher price in future years.

But already it appears that it will be a much tighter market for 2025. If this year carries on as it has started, the demand for allowances will be much higher than the supply; as a consequence, the price for them will rise close to the £12000 fine, with buyers desperate to outbid each other.

It is not a stretch to guess that the bill for allowances/fines could reach a billion next year. It is no wonder many carmakers, such as Stellantis and Hyundai, are warning that ZEV targets will lead to some manufacturers simply pulling out of the UK market. It is estimated by the SMMT that the car industry is already subsidising EVs to the tune of £11000 for every car sold, in an attempt to attract buyers.

In the meantime, the British Government is happy to hand over hundreds of millions to the Chinese car industry.

If you wanted to decimate the country’s motor industry, it is hard to think of a better way to do it!

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sctajc
March 22, 2026 10:35 pm

I thought fundamental muslims loved EVs???

Scissor
Reply to  sctajc
March 23, 2026 4:21 am

Yeah, they’re the bomb.

March 22, 2026 10:35 pm

Central Planning by central planners

Since when has this been known to work?

PS and N.B.: China is falling apart, BTW, receipts: https://www.youtube.com/watch?v=of3o9tZiIoA

The Expulsive
Reply to  _Jim
March 23, 2026 6:25 am

And Canada got a Champion of the Bureaucracy and central planning for its PM. The Carney. He has launched Canada into even higher deficits than his predecessor Justin.

William Howard
Reply to  _Jim
March 23, 2026 7:00 am

Adam Smith’s invisible hand always rises up to smite the totalitarians ie, central planners

William Lewis
Reply to  _Jim
March 24, 2026 12:18 pm

Well, you would never know if you haven’t read their “5 year plan” /s

March 22, 2026 11:42 pm

The buyers of ICEs will be thrown into prison until they comply, of course.
Is that not how it is done in the ‘free world’ today?
When is the revolution?

Intelligent Dasein
March 23, 2026 12:04 am

I guess everyone feels the need to misuse the word “decimate” ever since Trump decided to truth it.

Leon de Boer
Reply to  Intelligent Dasein
March 23, 2026 12:12 am

Is that better or worse than dropkicks who whine over inconsequential stuff?

missoulamike
Reply to  Intelligent Dasein
March 23, 2026 1:55 am

Well you can argue that half the carmakers pulling out of the market doesn’t qualify as decimation, the carmakers would probably disagree. Consumers will most likely see much higher prices with less firms trying to sell them cars and argue that doesn’t quite reach decimated levels. I would imagine the autoworkers who will be unemployed with no way to earn similar wages will definitely feel decimation. Like most leftoids 1 out of 3 probably is probably good enough for the girls you go out with so there is that. BTW your handle is an oxymoron.

Reply to  missoulamike
March 23, 2026 3:26 am

Decimation means removing one in ten or 10%

Reply to  Oldseadog
March 23, 2026 3:54 am

From Google AI.

Decimate originates from the Latin decimatus, the past participle of decimare (“to remove or destroy one-tenth”). It stems from the Roman military punishment of killing one in every ten soldiers in a mutinous unit, based on the root decem (“ten”). It entered English around 1600, eventually evolving from a precise 10% reduction to mean severe destruction.

The word certainly is overused and having taken 2 years of Latin in high school I dislike hearing people misuse the word.

Sparta Nova 4
Reply to  Oldseadog
March 23, 2026 6:46 am

Language is fluid. Definitions change based on common/social use and are context derived.

A word means what you want it to mean it the play today. No need to supply the context and no need to efficiently communicate.

Decimate now has a “modern” definition akin to nuclear destruction.

I disagree, but the reality is most people do not care about correct language.

Bad is now good and good is now bad.

It’s a long, long list.

1saveenergy
Reply to  Sparta Nova 4
March 25, 2026 10:25 am

“Language is fluid.”

Hence, Verbal Darrhoea !!

Bryan A
Reply to  missoulamike
March 23, 2026 6:04 am

If Government Subsidies were ended EV sales would decline precipitously further decimating the EV sector.
If the Government Mandates were rescinded tomorrow EV sales would plummet to Nil as no-one really wants one.

Sparta Nova 4
Reply to  Bryan A
March 23, 2026 6:47 am

No-one is an absolute. Very few would be better phraseology.

Bryan A
Reply to  Sparta Nova 4
March 23, 2026 5:56 pm

But either way could be proven.

Sparta Nova 4
Reply to  Bryan A
March 24, 2026 1:48 pm

It only takes one found to want an EV to falsify your statement.

The point of your post is without mandates, the EV sales will asymptotically approach zero.

Dave Andrews
Reply to  missoulamike
March 23, 2026 8:55 am

Because of poor EV sales Volkswagen is shedding 50,000 workers by 2030. Other manufacturers, especially in Europe, are facing similar problems and the job losses are going to be severe if the politicians don’t change their mandates.

William Lewis
Reply to  Dave Andrews
March 25, 2026 7:25 am

VW is looking to start building missiles and military vehicles for Israel per recent reports.
It’s possible these folks will keep their jobs.

Reply to  Intelligent Dasein
March 23, 2026 4:18 am

I can’t remember a time when “decimate”, “unprecedented”, “factoid”, or the phrase “beg the question” were ever used in the way perhaps you and I would consider correct. We can lament that, but when I see those words I think I do infer the intended meaning correctly so it’s harmless. I can even tolerate people saying “literally” when they mean the opposite. Those words have all acquired additional meanings.

I draw the line when words are used to deceive, like “safe space”; “your words are literal(!) violence”, and “trans-women are women”.

Scissor
Reply to  worsethanfailure
March 23, 2026 4:31 am

You might like this (or not). In addition to one’s pronouns, the following “land acknowledgement” is now appearing on email messages at CU Boulder.

“The University of Colorado Boulder, Colorado’s flagship university, honors and recognizes the many contributions of Indigenous peoples in our state. CU Boulder acknowledges that it is located on the traditional territories and ancestral homelands of the Cheyenne, Arapaho, Ute and many other Native American nations. Their forced removal from these territories has caused devastating and lasting impacts. While the University of Colorado Boulder can never undo or rectify the devastation wrought on Indigenous peoples, we commit to improving and enhancing engagement with Indigenous peoples and issues locally and globally.”

antigtiff
Reply to  Scissor
March 23, 2026 5:09 am

What sort of “engagement” do they mean? What about the Clovis people?

Bryan A
Reply to  antigtiff
March 23, 2026 6:10 am

The Clovis People were here first after all.

Scissor
Reply to  antigtiff
March 23, 2026 11:43 am

It could mean scalping them via tuition, room and board. Just guessing.

Reply to  Scissor
March 23, 2026 6:10 am

In other words: “soz”.

Bryan A
Reply to  Scissor
March 23, 2026 6:14 am

I’ve often thought that the remaining Native Americans should open casinos everywhere and invest the profits in buying properties all over the US. Then, slowly, they will buy back the nation piece by piece until it’s all theirs again. Concentrate on regions at a time and convert vast tracts back to indigenous control. (every piece they buy Can be considered indigenous land once ownership is transferred).

Bryan A
Reply to  worsethanfailure
March 23, 2026 6:08 am

Trans Women are “Trans Women” and, as such, deserve their OWN sports class so they only compete against other “Trans Women” and separate facilities so they only shower, restroom, or change clothes with other Trans Women.

William Howard
Reply to  Bryan A
March 23, 2026 7:02 am

nope they are men – period

Bryan A
Reply to  William Howard
March 23, 2026 5:58 pm

Actually they’re Eunuch individuals.

Bryan A
Reply to  Intelligent Dasein
March 23, 2026 6:00 am

Warning … Warning ..
Danger Will Robinson, Danger!!
Severe TDS alert

John Hultquist
Reply to  Intelligent Dasein
March 23, 2026 8:34 am

The Donald** didn’t start this; first usage was likely during the U.S. Civil War: {“The troops, although fighting bravely, were terribly decimated.” [See the site: worldwidewords ]
decimate” is one of the many words that have been hijacked to do work they were not originally intended for. Humpty Dumpty, a character from Lewis Carroll’s “Through the Looking-Glass,” famously discusses the nature of words and their meanings.
Others: “love” a term from tennis; “Normal” fondly coined by meteorologists; “gay” once used to describe happy little children.

**When one’s brain is occupied by DJT more than 10% of the time, it can be said to be decimated. 

Bryan A
Reply to  John Hultquist
March 23, 2026 1:46 pm

Decimated or Decimalated
Decimalated as Only a small portion remains active for critical processing.

MarkW
Reply to  Intelligent Dasein
March 23, 2026 4:45 pm

People have been misusing the word decimate for generations. It is nothing new.

March 23, 2026 3:34 am

How can a vehicle which harvests and stores power from a distant source which creates emissions in the production of that power and then uses the power later be called a zero emissions vehicle? The user of the power should be credited with the emissions once they use the power.

Reply to  Oldseadog
March 23, 2026 3:55 am

bingo!

Allen Pettee
Reply to  Oldseadog
March 23, 2026 4:54 am

And that’s not even counting the additional emissions from the additional power required to manufacture the batteries for “Zero” emission vehicles which is much larger than that to make an ICE vehicle, and is estimated to take 10 years of vehicle use to compensate for those added emissions from battery manufacture, which is likely longer than. The lifespan of the average “zero” emissions vehicle battery….

Reply to  Oldseadog
March 23, 2026 8:19 am

Oldseadog:
It’s more properly called a DEV: a displaced emission vehicle.

What kept the fledgling company called Tesla afloat during its first few years was selling indulgences [aka carbon credits] to other car maunfacturers. Nowdays, having to buy these credits is going to kill multiple car companies in he UK. China is laughing all the way to the bank.

And to be sure: DEVs, [and PHEV, HEV, etc] will not have any effect on climate, or weather.

MarkW
Reply to  B Zipperer
March 23, 2026 4:52 pm

I used to call them ZEHV. (Zero Emissions Here Vehicle)

rovingbroker
March 23, 2026 4:36 am

“Car manufacturers must ensure that electric cars make up at least 33% of their total registrations this year or face swingeing government fines of £12000 for every car they are short.”

Why is the penalty based on a percent of sales rather than a numerical limit on petroleum-powered vehicles sold? Expected damage to the environment doesn’t care about the percent of “polluting” cars … it cares about the amount of “pollution” which depends on the pollution per vehicle mile and the miles driven.

Or our friendly government could simply put a limit on the amount of gasoline and diesel fuel sold. That would be effective and also fun to watch — “I’m sorry Mrs. Jones, we have reached our limit for selling gasoline this month. Come back next week — I suggest getting here early because there are always long lines early in the month.”

Bryan A
Reply to  rovingbroker
March 23, 2026 6:17 am

And History repeats itself.
1970s gas rationing.

Reply to  rovingbroker
March 23, 2026 1:59 pm

If they do that I will have to start a still. Corn will be cheap and with major jet size increase my 53 will easily run on pure ethanol.🤔

antigtiff
March 23, 2026 5:30 am

In other news….PBS Terra sez Antarctica is melting….yes, Al Gore ,meted the Arctic tears ago… and now they are going southward. Also, there is a story about how beavers are helping in the battle against that Evil Carbon…….those cute lil creatures just want to help.

March 23, 2026 5:54 am

From the good folks at the Daily Sceptic:

Lid Lifted on the Filthy Manufacturing Secrets Behind the ‘Clean’ Green Power Revolution

The dirty manufacturing secrets behind the ‘clean’ green power revolution continue to pile up. As do the piles of filthy toxic waste growing across a China seemingly keen to supplant traditional energy and auto industries around the world at almost any price. The rare earth elements neodymium and praseodymium provide the best magnets for wind turbines and EVs, but they can arise from the ground at a fearful environmental cost.

Dave Andrews
Reply to  Paul Hurley
March 23, 2026 9:45 am

In October 2024 the UK’s National Engineering Policy Centre published a ‘Critical Minerals Report’
which in part looked at the amount of mining required to support the UK’s projected sales of EVs by 2040

They said that a 30% reduction of battery size in the largest EVs sold could save 46,000 tonnes of lithium, which to mine would require excavating 75,000,000 tonnes of earth.

To put this in a more easily understood quantity for people in the UK they said this was enough earth to fill Wembley Stadium 19 times.

However if the 30% reduction did not happen the total lithium requirements for the UK market for EVs up to 2040 would be 268,000 tonnes requiring 488,000,000 tonnes of rock to be mined.

1saveenergy
Reply to  Dave Andrews
March 25, 2026 10:36 am

“To put this in a more easily understood quantity for people in the UK they said this was enough earth to fill Wembley Stadium 19 times.”

That’s an incorrect SI unit of volume.
For accuracy, you should use … double-decker buses, whales, Olympic swimming pools or Wales. (:-))

Walter Sobchak
March 23, 2026 6:56 am

When you publish these articles, you really ought say which country you are talking about up top. I think this one was about the UK.

John Hultquist
Reply to  Walter Sobchak
March 23, 2026 8:43 am

Your comment suggests you have not been a reader of Paul Homewood’s site. You have missed 15 years of interesting posts. Catch up, please.

Walter Sobchak
Reply to  John Hultquist
March 23, 2026 2:43 pm

I am reading wattsupwiththat.com not Paul Homewood, whoever he, she, or it may be. My comment is directed to the editors of WUWT.

March 23, 2026 7:16 am

“If you wanted to decimate the country’s motor industry, it is hard to think of a better way to do it!”

It’s not a secret: The “Collapse” Quote: Strong famously posed a provocative question during the lead-up to the Rio Summit: “Isn’t the only hope for the planet that the industrialized civilizations collapse? Isn’t it our responsibility to bring that about?” This is now seen as the foundational “mission statement” for policies that prioritize environmental targets over industrial output.

Reply to  idbodbi
March 23, 2026 8:35 am

idb:
These people are ultimately anti-human.
But I would change your “over industrial output” to “over human flourishing.”
The climate alarmists I speak with really squirm when confronted with the immoral
effects of their policies that affect 100s of millions of people now.

Obama’s “Electricity rates will skyrocket…” clip:
https://youtu.be/-NKzVvKIoLI

George Kaplan
March 23, 2026 7:21 am

Australia is already seeing the pull out under Labor’s NVES. Nissan will cease to sell 3 of its 8 lines simply because they’re not viable under the current cost shifting model – non-compliant ICEVs must subsidise compliant imported (CCP) EVs. As time progresses the qualifying threshold for ICEVs will lower – possibly to physically unattainable levels, with Beijing laughing all the way to the bank.

Sadly current polling suggests voters will not change government despite the harm it’s causing the country, or the complaints of oh so many voters.

Bob
March 23, 2026 3:18 pm

Well what can I say? A government mandated target. Purely artificial crisis, what a bunch of dummies.

March 23, 2026 8:04 pm

Here’s some interesting information for all you ‘benefits-of-BEV-deniers’. (wink)

“CATL and CHANGAN Launch World’s First Mass-Production Sodium-Ion Passenger Vehicle”

https://www.catl.com/en/news/6720.html#:~:text=Yakeshi%2C%20Inner%20Mongolia%20%7C%205%20February,with%20its%20sodium%2Dion%20roadmap

Sparta Nova 4
Reply to  Vincent
March 24, 2026 1:49 pm

Ah, sodium ion. Once we have more than a few of those cell/batteries deployed, then we will find out the real problems with them.

Reply to  Sparta Nova 4
March 24, 2026 6:23 pm

Which I’m sure will be fixed. Can you give any examples of new technology that never had any future problems that had to be addressed?

1saveenergy
Reply to  Vincent
March 25, 2026 10:43 am

The spade, the pick, the lever