Report finds UK ZEV Mandate has supported £41bn of automotive investment since 2020
The UK's Zero Emission Vehicle (ZEV) Mandate has helped secure more than £41bn in investment commitments across the automotive sector since 2020, according to a new report from transport research organisation New AutoMotive.
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The report, A-Zev: The Road to Electric, argues that the policy has played a significant role in attracting private investment into electric vehicle manufacturing, battery production and charging infrastructure by providing long-term regulatory certainty for industry.
According to the analysis, the mandate has contributed to the development of a domestic battery supply chain worth more than £8.5bn across 14 active projects and has helped support the expansion of the UK's electric vehicle market. The report estimates that battery electric vehicles accounted for 23.4% of new car registrations in 2025, with nearly 470,000 units sold during the year.
The ZEV Mandate, which came into force in January 2024, requires vehicle manufacturers to ensure an increasing proportion of their annual sales are zero-emission vehicles through a system of tradable compliance credits. The policy was introduced as part of the UK's wider strategy to phase out the sale of new petrol and diesel vehicles and support the transition to lower-emission transport.
New AutoMotive's report projects that the UK's electric vehicle sector could contribute up to £385bn to the economy and support approximately 334,000 jobs by 2035 if current policy frameworks remain in place. Ben Nelmes, the organisation's chief executive, said the mandate had helped stimulate competition between manufacturers while attracting substantial investment into the sector.
The report was produced with contributions from industry organisations including EV UK, ChargeUK, Octopus Electric Vehicles and Transport & Environment UK. Several of the participating groups argued that policy stability would be essential to maintaining investor confidence as manufacturers continue to expand electric vehicle production and charging infrastructure.
The publication comes amid debate over the future direction of the mandate. Reports have suggested the government is considering adjustments to future electric vehicle sales targets following concerns raised by some vehicle manufacturers and trade unions about compliance costs and market conditions.
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Environmental campaign group Transport & Environment (T&E) has challenged calls from parts of the automotive industry to weaken the UK's Zero Emission Vehicle (ZEV) Mandate, arguing that evidence shows the policy is supporting electric vehicle adoption, infrastructure investment and industrial growth.
In a new briefing, T&E disputes a number of claims made by the Society of Motor Manufacturers and Traders (SMMT) in its recent assessment of the UK's transition to electric vehicles. The organisation argues that concerns about weak consumer demand, insufficient charging infrastructure and slowing battery cost reductions are not supported by current market data.
T&E's analysis contends that electric vehicle demand continues to grow. The organisation points to rising electric vehicle registrations and increased consumer interest in EVs, arguing that sales growth demonstrates that demand is strengthening rather than weakening. The briefing also highlights data showing continued expansion of the UK's public charging network, which it says is outpacing earlier government projections.
The report further challenges industry claims regarding the cost of supporting electric vehicle sales. T&E argues that estimates suggesting manufacturers have spent £10bn subsidising EV purchases are overstated and are not supported by publicly available evidence. The organisation also notes that battery costs have continued to fall over the long term, helping to improve the competitiveness of electric vehicles.
Tim Dexter, Vehicles Policy Manager at T&E UK, said weakening the mandate would risk undermining investment certainty at a time when manufacturers, charging providers and battery producers are making long-term commitments to electrification.