The Government has revealed that a number of iconic UK car brands will be made exempt from their plans to ban the sale of new petrol and diesel models by 2030.

The announcement is one of a number of changes made to the zero-emission vehicle [ZEV] mandate, which aims to support the transition towards electric cars.

Iain Reid, head of editorial at Carwow, highlighted that the biggest change made to the ZEV mandate is the confirmation that most car brands will be unable to sell new petrol and diesel models after 2030.

He explained: "The Government recognised that the current ZEV mandate wasn’t fit for purpose when it committed to its policy review last year.

"Now, with the confirmation that the 2030 phase-out date for new petrol and diesel cars is officially reinstated and added flexibilities introduced, we’re beginning to see signs of a more pragmatic approach – but there’s still work to do."

According to the latest version of the ZEV mandate, the majority of car companies will no longer be able to sell new petrol and diesel cars after 2030, with plug-in hybrid models being phased out in 2035.

However, in order to make this policy achievable, small-volume car companies that produce less than 10,000 vehicles per year will be exempt from the ban.

This includes a number of high-performance car companies based in the UK, such as Lotus and Aston Martin, along with heritage brands, like Morgan and Caterham, and luxury manufacturers including Rolls Royce.

Iain also welcomed the decision to reduce the penalty car brands face for failing to meet EV quotas, but warned that it could still put serious financial pressure on the companies.

He added: "While it's encouraging that penalties for missing ZEV targets will now be reduced by 20 percent—to £12,000 per car and £15,000 per van – and that credit borrowing between years will be introduced, the burden on carmakers is still high.

"However, the exclusion of small and micro-volume brands like McLaren, Lotus, and Caterham from the ZEV mandate is a welcome move, preserving innovation within Britain’s high-performance car sector."

As before, the majority of car companies will need to meet a specific quota of electric vehicles sold in the UK, with the percentage increasing each year.

In 2024, the year that the quota was introduced, 22 percent of all new cars sold had to be electric, with companies that failed to meet the target forced to pay a £15,000 fine per unsold vehicle.

While the year marked record sales of electric models, the 19.6 percent market share of EVs meant that many brands faced fines, in addition to losses caused by heavily discounting models to increase interest - a major factor into Stellantis' decision to stop producing vans at Vauxhall's famous Luton factory.