Committee publication · Correspondence · 9 June 2026
Letter from the Minister for Aviation, Maritime and Decarbonisation relating to the Zero Emission Vehicle mandate, 2 June 2026
From: Business and Trade Committee
Inquiry: Industrial Strategy
Summary
Minister for Aviation, Maritime and Decarbonisation Keir Mather responds to the Business and Trade Committee's concerns about the Zero Emission Vehicle Mandate's regulatory trajectory. He argues the mandate is functioning as designed, cites strong 2024-2025 EV market performance (23.1% of new registrations in 2026), defends recent legislative flexibilities, and commits to a mandate review by early 2027 while announcing £7.5 billion government support through 2035.
Key findings
- UK EV market share reached 23.1% of new car registrations in 2026 (up from 20.7%), with March recording the highest battery electric vehicle sales volume on record.
- The UK market exceeded ZEV Mandate requirements in 2024, and provisional 2025 data suggests both car and van markets will exceed 2025 targets when flexibilities are included.
- Government reduced compliance payment levels by £3,000 for cars (20% reduction to £12,000) and vans (18% reduction to £15,000) and introduced bidirectional van-to-car credit transfer.
- Government has committed £7.5 billion to 2035 to support ZEV transition, including £4 billion for DRIVE35 programme and £3 billion five-year funding package; Electric Car Grant has supported over 110,000 drivers.
- Government prioritises securing changes to EU's proposed Industrial Accelerator Act to recognise UK's unique position in European automotive sector and will review the ZEV Mandate by early 2027.
Tone
SupportiveTopics
Key actors
Keir Mather MP, Liam Byrne MP, Minister McDougall, UK Government, UK manufacturers, European Union
Notable line
“… the UK market as a whole met the ZEV Mandate's requirements in 2024. You are correct to note the Mandate's flexibilities …”
Key Quotes
“… the UK market as a whole met the ZEV Mandate's requirements in 2024. You are correct to note the Mandate's flexibilities, which were designed to support the varied product portfolios and compliance strategies of different automakers, played an important part here.”
“So far this year, 23.1% of new car registrations have been electric, up from 20.7% a year earlier, with March having the highest volume of battery electric vehicle (EV) sales in the UK on record.”
“We recognise the ZEV Mandate's ambition must be balanced by ensuring the regulation is suitable for evolving market conditions.”
Source · parliament.uk record ↗