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What Fleet Managers Need to Know About the ZEV Mandate


As a fleet manager, it’s important that you understand the shifting EV landscape to ensure your fleet remains modern and fit-for purpose.

As a fleet manager, it’s important to understand the shifting EV market to ensure your fleet remains modern and fit-for-purpose.  

The UK Zero Emission Vehicle (ZEV) mandate is an important aspect of the EV landscape, as it directly impacts the available number of electric vehicles for your fleet.

Latest updates to the ZEV mandate

As of mid 2026, the ZEV mandate is in its third year of implementation. The long term goal of the mandate is still for car manufacturers to reach 100% zero-emission sales by 2035, but some ‘flexibility measures’ have been introduced to help manufacturers manage current market pressures. These include:

  • Future borrowing - Manufacturers can ‘borrow’ credits from their own 2027- 2030 targets to cover current shortfalls, though this incurs an interest penalty of 3.5%.
  • Credit trading - Brands with EV surplus credits can sell them to other manufacturers to help them avoid fines.
  • Banking - Excess credits from 2024 and 2025 can be rolled over to meet 2026 targets.
  • Small-volume exemptions - Niche manufacturers are exempt from targets until 2030.

  • Carbon offsetting - Manufacturers can earn efficiency credits by making internal combustion engines cleaner.

  • As a result of these changes, fleet managers may consider shifting from ‘early adoption’ of EVs, to a more gradual transition.

Learn More About the ZEV Mandate and Fleet Insurance

What are the requirements of the ZEV mandate?


The ZEV mandate requires car and van manufacturers to sell an increasing percentage of zero-emission vehicles every year. It’s a scheme designed to phase out the sale of new internal combustion engine (ICE) vehicles so that by 2035, all newly sold cars and vans are fully zero-emission.

The requirements are laid out on a timeline over the course of the next 9 years (as of 2026) to phase out the selling of ICE vehicles. When the scheme began in 2024, the target was 22% for cars and 10% for vans. By 2030, 80% of new cars and 70% of new vans sold in Great Britain must be zero emission.

What the Zero Emission Vehicle mandate means for fleets


For vehicle fleets, the zero emission vehicle mandate will mean that there is a reduced number of ICE vehicles on the road over time. As a result, you will be more likely to need to consider electric options.

Whilst the 
transition to an EV fleet can be costly upfront, the long term savings resulting from cheaper operational costs and upkeep are likely to make your fleet more cost-efficient in the long run.


ZEV mandate deadlines


The ZEV mandate deadlines are as follows:

YEAR

Minimum ZEV Car Sales

Minimum ZEV VAn Sales

2024

22%

10%

2025

28%

16%

2026

33%

22%

2027

38%

34%

2028

52%

46%

2029

66%

58%

2030

80%

70%

2031

84%

76%

2032

88%

82%

2033

92%

88%

2034

96%

94%

2035

100%

100%

Steps to prepare your fleet for the ZEV mandate

As car manufacturers begin to sell more and more electric vehicles, it’s important that you keep your fleet up to date with these changes. Electric vehicles are highly beneficial for most business fleets because they’re very efficient and cost-effective.

Here’s how to prepare your fleet for the ZEV mandate:

  • Audit your fleet and routes - Install or review existing telematic data to map daily mileage and routes, then identify which vehicles are most suitable to transition to electric first. You should also consider your electric car insurance requirements., and come to a specialist for electric fleet insurance.

  • Plan charging infrastructure - If you operate from a depot, check with your distribution network operator to check local grid capacity. If not, determine how drivers may utilise home or public charging stations.
  • Assess financial incentives - Check government incentives, leverage company car tax breaks, and consider a salary sacrifice scheme to increase driver uptake.
  • Run small trial - Deploy a few EVs on shorter routes to test battery range and check for hitches. Then gather driver feedback.
  • Phased rollout - Align your phased rollout with ZEV mandate, accounting for the lifespan of your existing ICE vehicles to spread the cost of your transition.

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Implementing fleet electrification changes


Depending on the size of your fleet, implementing fleet electrification often requires a phased, data-backed approach. Here are our key steps to a gradual switch to electric vehicles:

  1. 1
    Initial assessment and planning - Audit your current fleet to identify which vehicles you plan to switch first. Usual targets are those with predictable and shorter routes, which you can use to test the first phase. At this stage, you should also research government or local incentives to make the switch.
  2. 2
    Infrastructure planning - Assess the electrical capacity of your current premises and determine if upgrades to your infrastructure needs an overhaul to facilitate charging stations. 
  3. 3
    Insurance changes - Research EV-specific insurance requirements or speak to fleet insurance experts to find out what changes you might need to make to your fleet policy. 
  4. 4
    Phased switch - Begin with a ‘pilot program’, switching roughly 10% of your fleet to test the process and pinpoint snags or issues. 
  5. 5
    Training and management - As you roll out your first phase of electric vehicles, provide comprehensive training to familiarise your drivers with features such a regenerative braking and instant torque. Monitor performance on the new vehicles (charging, range, energy use) and refine your strategies and route optimisation to maximise ROI. 


Note: For smaller fleets of two or three vehicles, a single cost-benefit analysis and update to your insurance policies may suffice before you overhaul all of the vehicles together.

For any queries or insurance requirements as you transition to an electric fleet, contact FleetCover.

 

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