ZEV Mandate investment could be put at risk if ministers weaken the UK’s electric vehicle sales rules, according to a new report from New AutoMotive.
New AutoMotive has warned that changes to the UK’s Zero Emission Vehicle (ZEV) Mandate could undermine electric vehicle investment, charging infrastructure growth and the country’s wider clean transport transition.
The organisation’s report, A-Zev: The Road to Electric, argues that the ZEV Mandate has become one of Britain’s most significant market-based industrial policies.
The report was produced by New AutoMotive, with contributions from Octopus Electric Vehicles, Electric Vehicles UK, ChargeUK and Transport & Environment UK.
It comes amid industry concern that weakening the policy could slow UK manufacturing, reduce investor confidence and affect the rollout of charging infrastructure.
ZEV Mandate investment claims outlined in report
The report says the ZEV Mandate has helped support more than £41bn of investment committed to the UK automotive sector since 2020.
It also says the policy has supported an emerging UK battery supply chain worth more than £8.5bn across 14 active projects.
According to New AutoMotive, the transition to electric vehicles could generate a £385bn contribution to the UK economy and support 334,000 jobs across the EV sector by 2035.
The £385bn economic value and 334,000 jobs projection is attributed in the release to LCP Delta research commissioned by ChargeUK. The LCP Delta report examines the potential economic impact of UK EV charging through to 2035.
The UK Government says the ZEV Mandate sets out the percentage of new zero-emission cars and vans manufacturers are required to produce each year up to 2030, rising to 100% by 2035.
EV market reaches two million vehicles
The New AutoMotive report says Britain had reached two million fully electric vehicles on the road by March 2026.
It also says battery electric vehicles accounted for 23.4% of all new car registrations in 2025, with almost 470,000 sold.
The report argues that the mandate has helped increase competition between manufacturers, widen consumer choice and place downward pressure on prices.
It also says the UK’s public charging network has doubled to more than 120,000 charge points.
New AutoMotive said switching to an electric vehicle can reduce transport costs for drivers by around £900 a year through lower fuel and running costs.
Industry groups warn against weakening ZEV Mandate
Industry contributors to the report said weakening the ZEV Mandate would risk slowing the UK’s progress at a time when international competition in electric vehicle manufacturing is intensifying.
Ben Nelmes, CEO / Founder, New AutoMotive, said: “The ZEV Mandate is one of the most successful industrial policies Britain has introduced in decades. It has helped deliver two million electric cars, supported more than £41 billion of investment commitments and accelerated competition between manufacturers. The question now is whether Britain builds on that success or puts it at risk. The worst signal the government could send to investors is uncertainty.”
Tanya Sinclair, CEO, Electric Vehicles UK said: “The ZEV Mandate is not an abstract regulation. It is a framework that encourages manufacturers to compete harder, invest more, and deliver better value. Protecting it means protecting a future where buying and running a car becomes more affordable, flexible and convenient for all of us.”
James Court, Director of Policy, Octopus Electric Vehicles, said: “Electric vehicles are already helping families cut transport costs while reducing Britain’s exposure to volatile global oil markets. Every additional EV makes our energy system more efficient, more resilient and ultimately cheaper for consumers.”
Charging sector highlights infrastructure risk
The charging sector has also warned that uncertainty over the ZEV Mandate could affect private investment in infrastructure.
Vicky Read, CEO, ChargeUK said: “A U-turn on the ZEV Mandate would not only halve investment in the critical charging infrastructure needed for the transition, it would undermine the UK’s credibility as a market worth investing in at all. The government can either crumble to legacy auto lobbying or stand firm on a policy which can bring cleaner, cheaper driving to millions, contribute hundreds of billions to the economy and create hundreds of thousands of jobs.”
Tim Dexter, Vehicle Policy Manager T&E UK, said: “In a world that feels increasingly unstable, it is vital that UK households are protected from volatile fossil fuel markets that can push up the cost of the daily commute, the school run and running a business almost overnight. Recent geopolitical crises have shown how exposed we remain to global oil shocks. Accelerating the transition to electric vehicles is now an energy security and economic necessity, reducing reliance on imported oil and shielding households from price spikes.”
The report argues that policy certainty remains central to attracting long-term capital, supporting domestic manufacturing and helping the UK remain competitive in the global shift to electric vehicles.
Source: New AutoMotive
