Question to the Department for Transport:

To ask the Secretary of State for Transport, what assessment she has made of the potential impact of Zero Emission Vehicle mandate compliance costs on UK automotive manufacturing investment and employment.

The Zero Emission Vehicle (ZEV) Mandate sets a clear direction for the UK’s automotive sector, providing the certainty industry needs to unlock jobs and secure investment. Data from the ZEV Mandate shows the average cost of trading ZEV allowances to meet compliance in the UK in 2024 was approximately £4,000 per traded ZEV allowance for cars. DfT analysis estimates the average additional cost of discounting for ZEVs was around £2,800 per vehicle in 2025. Both are substantially lower than the Mandate’s compliance payment levels. The Government will continue to engage with manufacturers om UK investment, including through our ongoing ZEV Mandate review consultation.