THE UK could miss out on the predicted boom in EVs from 01 January 2021 thanks to supply issues once UK registrations no longer count towards EU CAFE targets.
EU CAFE targets place requirements on manufacturers to meet an average of 95g/km of CO2 emissions, or face swingeing fines.
The potential remains for manufacturers to concentrate their build and sales plans on Europe, to the exclusion of the UK, in order to guarantee they meet those emission targets.
The point was raised during the BVRLA’s latest Industry Outlook webinar today, entitled A spotlight on EU Exit and economic recovery as the panel considered issues beyond the 10% rise in tariffs.
Chris Black, commercial director at broker funder LeasePlan, commented:
We could end up with an exchange rate that goes the wrong way, as well as a supply problem – so we need to make sure that we continually pressure the government to make sure the environment is right for the growth of EVs and supply levels overall.
Thomas McLennan, the BVRLA’s Brexit specialist, led the discussion, which included Steve Tongue (Select Car Leasing), Rupert Pontin (Cazana) and Ben Lawson (Enterprise), along with Black.
McLennan said that from January car and van prices will rise thanks to the addition of a 10% tariff, saying “we can plan for that – it’s a finite charge. But it’s the long tail issues that we don’t know about yet that could also cause issues.”
Steve Tongue, Select Car Leasing’s head of HR and compliance, added:
We need to provide clear information to customers. In order to maintain a competitive edge and provide accurate information to customers, we need to adapt to the continually changing technology and that means investing in staff and training so they can communicate effectively and keep customers informed.
Talking about the demand for EV vehicles, Rupert Pontin said that putting the customer in the right car at this stage of the electrification evolution was key.
“We’ve seen in the past what has happened when drivers have taken cars for the taxation position without understanding the vehicles and benefiting from the technology. This has impacted on the RVs as well.”
While Ben Lawson said that following COVID, different work patterns would lead to different demands from vehicles, and there was a danger of becoming hooked on EV range issues.
Finally, Tongue had a good piece of advice for broker businesses, saying:
“Businesses need to talk to staff and understand how 2020 has impacted them and what that might mean going forward. For a customer driven business, we need to keep our own staff engaged – so listen to staff and talk to them.”
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.
