Automobile Industry: ZEV Mandate

Tuesday 10th November 2026 Lords Chamber

Question

14:36

Asked by

[Lord Woodley]

To ask His Majesty’s Government what assessment they have made of the automobile industry’s concerns about Zero Emission Vehicle Mandate compliance targets and the potential for a loss of jobs.

[Baroness in Waiting/Government Whip (Baroness Dacres of Lewisham) (Lab)]

The automotive sector’s future is zero emissions. The Government are investing more than £7.5 billion to drive investments and safeguard jobs for the future. Tata is investing £4 billion in the UK gigafactory, with further investments from Stellantis, Nissan, Bentley, McLaren and others. We are taking a balanced approach to the transition. We have just closed a consultation reviewing the ZEV mandate. We are working with the devolved Governments to publish the outcome as soon as possible.

[Lord Woodley (Lab)]

I thank the Minister for that response, and I take the opportunity, on behalf of the House, to wish her a happy birthday today. How lucky she is to have her first Question come from me.

We are less than eight weeks from the end of the year, and March 2027 is the most important month in the car industry’s calendar for sales. Therefore, an urgent outcome from the ZEV mandate consultation is needed now. I hope the Government’s commitment to end sales of pure petrol and diesel cars by 2030 does not threaten production and jobs in the sector, helped by reducing the EV target to below the 80% currently on the table. Are the Government giving serious consideration to other technologies or fuels that should have a role in the future—for example, mild hybrid electric vehicles?

[Baroness Dacres of Lewisham (Lab)]

I thank my noble friend for his good wishes; I am feeling very lucky today. I also thank him for his years of dedicated service to and championing of the automotive industry. He is right that now is a critical time for the industry. That is why the Government are conducting a review of the ZEV mandate, which we aim to publish this year. We are working with industry to protect jobs and accelerate reindustrialisation. The future of our automotive sector is zero emissions, and the Government are committed to ensuring that those jobs come to the UK. The department has discussed mild hybrid vehicles in detail with manufacturers. Their future role will be part of the outcome of the review.

[Lord Harper (Con)]

My Lords, I am the Minister who set the ZEV targets in the first place. The noble Baroness will remember that under Rishi Sunak we moved the 2030 phase-out date for petrol and diesel cars to 2035. We thought that struck a better balance between our emission targets and—as the noble Lord, Lord Woodley, opposite said—protecting the automotive sector. This Government returned it to 2030. Is the Minister reflecting on whether that was the right decision? Also, the Government are rumoured to be adjusting the trajectory of how we get there. If they change the trajectory but not the end date, perhaps they are not being as honest with the public as they ought to be.

[Baroness Dacres of Lewisham (Lab)]

As I have mentioned, the Government are committed to reindustrialisation and the future is zero emissions. I am pleased to hear what the noble Lord mentioned on the moving of those targets under former Prime Minister Rishi Sunak. The review, which concluded a few weeks ago and will be published by the end of the year, is not hiding anything. That is why we are involving different parts of the automotive sector, including trade unions and other organisations and groups. With their help and support, and taking their views on board, we want to find out exactly what needs to be done to move in the right direction so that we get to those targets together.

[Baroness Parminter (LD)]

My Lords, available charging is vital for EV drivers, yet ChargeUK is warning that £1.7 billion of charging infrastructure is in jeopardy if the ZEV mandate is changed. What account are the Government taking of the needs of drivers and of further investment in clean, green driving as they consider watering down standards for car makers?

[Baroness Dacres of Lewisham (Lab)]

The Government are working hard to make sure that we are involving all parts of the automotive industry. The noble Baroness mentioned charging points: we are investing £600 million to support the rollout of charging infrastructure. That includes working with local governments, strategic authorities and our devolved nations to make sure that everybody is pulling in the right direction to ensure that we get the rollout in all parts of the country.

[Baroness Shah (Lab)]

My Lords, I wish my noble friend a happy birthday. EV charging capacity and support are available quite readily and easily for home owners. Can my noble friend explain how the Government are supporting renters and leaseholders in accessing EV charging?

[Baroness Dacres of Lewisham (Lab)]

I thank my noble friend because she raises an important issue of equity and fairness. We recognise that not all drivers have access to home charging. If you live in an apartment block and do not have a drive, you cannot just park outside your home and plug in. We are supporting local authorities with funding to install on-street parking. We want to make sure that it is accessible, which is why we are providing a further investment of £100 million over the next two years so that on-street public chargers are available and accessible. We are also looking into tariff porting to enable those who use public charging points to get the best and most affordable prices they can.

[The Lord Bishop of Manchester]

My Lords, the EV that I drive is one of the best vehicles I have ever driven, so I am a bit biased, but I want to ask about how EVs relate to the national grid. How can we ensure that, as there are more EVs on the road, the grid itself is able to cope, not simply the charging points? Have the Government considered how EVs might be used, when they are plugged in on somebody’s drive, to provide electricity back into the grid at peak periods? Perhaps drivers could be compensated for doing that.

[Baroness Dacres of Lewisham (Lab)]

It sounds like we are moving to solar panel cars. We are looking into the interesting points that the right reverend Prelate makes. We are making sure that we are providing charging points, which is why we are spending the £100 million to ensure that we get that breadth of service. I am sure noble Lords will recall that the Government have said the UK grid is an important part of our country’s infrastructure. It is important not only for EV charging but for homes, business and all industries that use electricity. We need to make sure that our future electricity grid is sustainable and working for all.

[Baroness Hayman (CB)]

My Lords, the Minister gave some impressive figures about investment, but is the noble Baroness, Lady Parminter, not correct in saying that uncertainty and inconsistency in government policy is the thing that really threatens investment across the automotive industry and in charging? Can the Minister give some reassurance that we will not be in a position of continuous and running consultation on dates that need to be clear to give some sense of direction?

[Baroness Dacres of Lewisham (Lab)]

I would like to reassure the noble Baroness that the work we are doing to make sure that we have direction, and are clear, gives that surety to the industry so that it knows we are sure-footed and can have that confidence. Without confidence, we are not going to get the investment into the country for the automotive industry or for other industries. That is why we are investing £7.5 billion to help businesses, drivers and manufacturers. That surety will help to bring that investment in.