Net Zero Mandate
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Chinese carmakers cash in on Britain’s EV credits
Yahoo Finance· 2026-01-31 14:00
Group 1 - Major car manufacturers in Britain, including Jaguar Land Rover and Toyota, failed to meet electric vehicle (EV) sales targets, leading to potential fines and the need to purchase credits from competitors [1][5] - Four Japanese manufacturers—Suzuki, Nissan, Mazda, and Honda—are significantly behind the targets and will need to acquire credits to avoid fines, with a collective risk of around £50 million if they do not comply [2][6] - The zero-emission vehicle (ZEV) mandate requires increasing proportions of electric vehicles in manufacturers' sales, starting at 22% in 2024 and rising to 80% by 2030 [3][4] Group 2 - Manufacturers can receive allowances for low-emission vehicles and may borrow against future sales, but this borrowing is capped, necessitating credit acquisition for those far below targets [4][5] - The analysis indicates that last year, when the target was 28%, most carmakers missed the quota based solely on EV sales, with some needing to borrow against future sales to meet requirements [5] - Industry experts criticize the mandate for favoring Chinese manufacturers, as those selling exclusively EVs have surplus credits to sell, impacting competition [3][4]