New petrol and diesel car ban confirmed for 2030 - but rules relaxed and hybrids allowed until 2035

The confirmed date comes after the previous government relaxed an originally proposed 2030 ban on new petrol and diesel cars to 2035.

The announcement also follows a government review into the current Zero Emission Vehicle (ZEV) mandate that gives car companies targets on the percentage of EVs they must sell each year to avoid fines.

The revised ban, published by the Department for Transport, is said to give “certainty, stability and support as the Prime Minister sets out plans to back industry in the face of global economic headwinds”.

This refers to the US President’s recent announcement of sweeping tariffs on global imports into North America – including a 25% import tariff on cars made outside the US. That announcement has already seen Land Rover pause its car exports to the US.

Although a full rundown of the rules will be published later this spring, the UK’s announcement confirms full hybrid cars – such as the Toyota Corolla and Nissan Qashqai e-Power – will be allowed to be sold until 2035.

Previously it was thought that only plug-in hybrids, described by the previous government as hybrids with a “meaningful” electric-only range, would be allowed until 2035.

However, mild hybrids will not be allowed as they primarily rely on the petrol or diesel engine to drive the car. Vans with pure petrol or diesel engines will also continue to be allowed until 2035.

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Following an “extensive” consultation with the UK car industry, the ZEV mandate is set to be relaxed in some areas to give “increasing flexibility”, the announcement says.

This means more electric cars “can be sold in later years when demand is higher”. While it’s not confirmed whether the requirement for carmakers to ensure 28% of their sales this year are electric cars will be scrapped, increased flexibility is being offered.

Smaller, low-volume British-based carmakers such as McLaren and Aston Martin are also confirmed to be exempt from the ZEV mandate targets, “preserving some of the UK car industry’s most iconic jewels for years to come”. This exemption applies to any company producing fewer than 2,500 cars a year.

Alongside this, the government says it is “pressing on with tax breaks worth hundreds of millions of pounds to help people switch to electric vehicles”.

There will also be an extension of the ‘credits’ scheme for carmakers, allowing them to offset sales of non-electric vehicles by exceeding targets to reduce CO2 emissions – effectively rewarding selling hybrids.

Previously set to end in 2026, the process of ‘borrowing’ credits – where carmakers can borrow up to half the mandated sales mix of EVs from future years – is now being extended through to 2030. It’s also now possible to trade these credits between car and van sales.

Mike Hawes, Chief Executive of the Society of Motor Manufacturers and Traders (SMMT) said in a statement that the government has “rightly listened to industry, responded quickly to global dynamics and recognised the intense pressure manufacturers are under.

“Industry remains committed to decarbonising road transport but the ZEV Mandate targets are incredibly challenging, especially with a paucity of consumer demand and geopolitical upheaval. Growing EV demand to the levels needed still requires equally bold fiscal incentives, however, to give motorists full confidence to switch."