In 2025, the UK automotive sector is navigating a significant transformation, with electric vehicles (EVs) becoming increasingly central due to stricter government policies. The Zero Emission Vehicle (ZEV) mandate has now risen to 28%, requiring over a quarter of new cars sold this year to be zero-emission. This is forcing manufacturers to ramp up EV production—but it also presents a range of challenges for both consumers and the industry.
What Is the ZEV Mandate & Why Does It Matter?
The ZEV regulation now demands that 28% of all new car sales be electric in 2025, up from 22% in 2024. However, the EV market share fell short last year at only 19.6%, leading to doubts about meeting this year’s goal. Still, forecasts suggest sales could exceed 35% by March 2025, thanks to rising interest and incentives.
For drivers, this means a broader EV selection, but also new hurdles: EVs generally cost more upfront, and the UK’s charging infrastructure remains limited. Compounding this, from April 2025, EV owners will face a new annual Vehicle Excise Duty (VED) of £425—a policy many believe weakens the financial benefits of owning an EV. To offset EV purchase costs, drivers might consider selling their current vehicles via platforms like WeBuyAnyCar for fast valuations.
How Do UK Drivers Feel About EVs?
Public opinion on EVs is evolving. A recent survey revealed that 59% of potential car buyers in the UK are considering alternative powertrains—up from 54% in 2023. This shows increasing interest, but affordability remains a concern. EVs are still typically more expensive than petrol or diesel cars, and there are lingering doubts about battery longevity and charging station availability.
Luxury car owners, like those with a Lexus, face an even more nuanced decision. Selling a luxury vehicle now—when resale values are strong—could be a smart move toward funding an EV upgrade. If you're thinking, “Should I sell my Lexus?”, market conditions suggest it could be a good time.
EV Adoption Brings New Opportunities
While there are challenges, the shift to electric vehicles also brings opportunities. More budget-friendly models are being introduced, and new entrants like China’s BYD and MG are increasing competition—potentially pushing EV prices down. Government grants for home charging units continue, helping to ease the transition for homeowners.
At the same time, a shortage of newer petrol vehicles has driven up used car prices, making now an ideal moment to sell for those looking to capitalise on their vehicle’s value before the market shifts further.
Used Car Market: A Pivotal Factor
The used car sector is playing a vital role in the EV transition. While petrol cars still enjoy strong resale demand, more nearly-new EVs are entering the market from fleet turnover. These slightly used EVs are attractively priced, but concerns around battery degradation are affecting buyer confidence and lowering resale values.
For car sellers, timing is critical. Selling a petrol car now might result in higher returns, while holding on to an EV too long could mean settling for less.
The Road Ahead
Government mandates are undeniably transforming the UK’s automotive landscape. For drivers, this means staying informed and agile in their vehicle decisions—whether that’s buying an EV, selling a petrol car, or simply understanding how regulations are shaping the market.
For those ready to sell, current conditions offer an excellent chance to benefit—especially for petrol vehicle owners. As the industry continues its rapid evolution, keeping up with trends and changes will ensure you make smarter, more profitable automotive choices.