FOLLOWING a meeting with OEMs and government, the Business Secretary Jonathan Reynolds confirmed at the SMMT dinner last night (26 November 2024) that it would consult on the speed and depth of the ZEV mandate.
Reacting to this announcement, Paul Hollick, Chair of the Association of Fleet Professionals (AFP), said:
“It has become clear that, however well-meaning its intentions, the ZEV Mandate needs to change, and it is good news that the government has recognised this fact relatively soon after being elected and appears to be taking the issue seriously. It is also positive that the consultation announced by Jonathan Reynold last night will be concluded quickly.
“However, the real test of the government will lie in the changes that it chooses to make. From a fleet point of view, we believe that while the car element of the ZEV Mandate requires some moderation, vans are the real issue. Electric van sales have been flatlining at around 5% for over a year and the reasons for this are that the practical limitations of the available models – range, payload, charging facilities – make them unsuitable for many operators.
“Because of these factors, we’re in a situation where, no matter what percentage of new vans manufactured are electric, large numbers of our members are planning to stick with their existing diesel vans for the foreseeable future. Making fleets hang onto older, more polluting vehicles for longer is obviously not what the government intends.
“It’s potentially a concern that the government says it remains fully committed to the 2030 deadline for ending pure petrol and diesel sales because there will probably need to be some flexibility, even if just around the definition of hybrids. Fine tuning the ZEV Mandate probably won’t improve the overall situation. Instead, more direct, radical action is needed if we’re to avoid more factory closures of the type announced by Stellantis regarding its Luton plant.”
Ralph Morton is the leading journalist in the leasing broker sector and editor of Broker News, the website which provides information and news for BVRLA-registered leasing brokers. He also writes extensively on the fleet and leasing market in both the UK and Europe.
