Why there could be a fork in the road ahead
Fleets need more than ZEV mandate flexibility in order to prosper in the current climate. By Toby Poston, chief executive, BVRLA
Toby Poston
Chief executive, BVRLA
The UK’s road to net zero has never been a straight one, but for fleet operators, recent policy shifts have only added more sharp turns. One example was the Government’s recent changes to the Zero Emission Vehicle (ZEV) mandate, which were framed as a moment of relief for manufacturers, introducing greater flexibilities in response to global trade concerns. Now, plug-in hybrids and full hybrids will be permitted until 2035 for cars – and pure diesel vans can continue for longer under revised targets. While these moves were designed to stabilise supply, they raise critical questions for those at the coalface of the EV transition – particularly van operators, rental fleets and the used market, all of which were left out of the policy refresh.
EV car adoption often dominates the headlines, but it’s the commercial vehicle sector where the decarbonisation challenge becomes most acute. Electric van capabilities are improving, but constraints on payload, range and affordability remain persistent barriers, especially for SMEs and regional operators.
If the Government is serious about cutting transport emissions, it must support those doing the heavy lifting – literally! Electric vans represent one of the toughest frontiers of the transition and they can’t be treated as an afterthought. The ZEV mandate changes gave manufacturers room to breathe, but van operators and the rental sector got left out in the cold.
These sectors face unique hurdles. Operators must navigate complex duty cycles, unpredictable mileage and high capital costs. For rental firms, short ownership periods and residual value risk are hard to reconcile with today’s volatile used EV market.
Despite recent coverage celebrating “ZEV success” and “surging used EV sales”, the BVRLA warns against mistaking short-term data spikes for long-term health.
Much of the recent ZEV target achievement has come from deep OEM discounting, pre-registrations and channel-stuffing into fleet and Motability segments. Retail demand has yet to catch up, leaving a dangerously top-heavy market. Similarly, while used EV demand is growing, it’s doing so on the back of heavy depreciation that artificially reduces upfront cost – but inflates new vehicle lease rates and dampens future supply confidence. This distortion is particularly damaging in the van sector, where long-term total cost of ownership (TCO) is critical to adoption.
The used market can’t carry the load alone – and neither can fleets. We need more joined-up thinking from government. Supporting uptake means looking beyond new vehicle supply and into how vehicles are deployed, reused and supported throughout their lifecycle.
The challenge now isn’t just meeting targets – it’s building a sustainable, self-reinforcing market. The BVRLA argues that continued progress demands a focus on:
- EV infrastructure that meets commercial needs, not just commuter habits
- Tax and incentive consistency, especially Benefit-in-Kind and VAT on charging
- Support for rental fleets, which are key to mainstream consumer exposure
- Skills development, to keep aftersales and servicing aligned with evolving vehicle technology
“If the Government is serious about cutting transport emissions, it must support those doing the heavy lifting – literally!”
The association’s latest government submission, shaped by wide member consultation, reflects cross-sector consensus on the urgent priorities. With the 2025 Spending Review and Industrial Strategy on the horizon, the BVRLA is pushing for interventions that work for all operators, not just manufacturers.
The EV journey is no longer about proving if the transition will happen. It’s about making sure it works for everyone. The BVRLA will continue making the case for smarter, more inclusive transport decarbonisation policy – one that doesn’t overlook the complexity of the market or the importance of long-term sustainability over short-term stats.
Sessions at the BVRLA’s Fleets in Charge Conference, themed ‘Changing Demand or Demanding Change?’, in July will include government policy and regulatory developments, EV infrastructure and investment gaps, the evolving used EV market and the skills needed to support the transition. The event will feature key voices from across the sector and offer delegates the opportunity to ask pressing questions.
