ZEV mandate review should reflect reality
By Toby Poston, chief executive, BVRLA
The Government’s review of the Zero Emission Vehicle (ZEV) mandate provides an opportunity to assess how the policy is performing and where it can better support the UK’s transition to zero-emission road transport. The review was always baked into the legislation, but its timings have become an increasingly molten political potato in recent months.
Toby Poston, chief executive, BVRLA
Political posturing aside, the direction of travel remains clear. The automotive sector is committed to decarbonisation and the BVRLA continues to support the ambitions that underpin the ZEV mandate. Since it was introduced, however, the market has evolved significantly. We have multiple transitions progressing at different paces, be that whether you look at car vs van, rental vs leasing, private vs company car, the list goes on.
The review should reflect those experiences and be informed by evidence from the businesses delivering the transition every day.
No part of the industry has been more central to that transition than the vehicle rental, leasing and fleet sector.
BVRLA members have registered around 1.3 million of the UK’s battery electric cars, remarketed an estimated 550,000 into the used vehicle market and today hold around 750,000 electric vehicles on their balance sheets. Collectively, that represents more than £36bn of investment in the UK’s decarbonisation journey.
The scale of our sector’s commitment cannot be understated or overlooked.
Our members have invested heavily, created access to electric vehicles for businesses and consumers, and played a leading role in establishing the used EV market that is essential in making electric motoring accessible to the masses.
Alongside that progress, businesses continue to manage significant residual value volatility, uneven consumer demand across different vehicle segments, infrastructure challenges and increasing compliance costs. These are commercial realities that influence investment decisions and the pace at which fleets can transition with confidence.
“This consultation provides an opportunity to ensure that future policy reflects the reality seen on the ground.”
The review should retain the long-term certainty that businesses need to invest while recognising how the market has developed over the past few years. Success should not be judged solely against annual registration targets, but also by the strength of the wider market, including healthy consumer demand, a sustainable used EV sector and the confidence for businesses to continue investing.
We also need clearly differentiated discussions based on the transitions for cars and vans respectively. The progress, use cases, and feasibility are worlds apart; they cannot be considered as having the same journey just on different timelines.
Government and industry share the same ultimate ambition. Achieving it requires policy that works alongside market conditions rather than assuming they remain unchanged.
The BVRLA will engage fully with the consultation, and the wheels are already in motion. We will be drawing on evidence from members across the rental, leasing and fleet sectors. Our submission will reflect practical experience from every stage of the vehicle lifecycle, highlighting where the current framework is delivering positive outcomes and where targeted changes could strengthen investment, improve consumer confidence and support continued growth in electric vehicle adoption.
As ever, member insight will be central to that response. Over the coming weeks we will be gathering evidence and holding dedicated working group sessions to ensure our submission reflects the priorities and experiences of all members.
The rental, leasing and fleet sector has consistently demonstrated its willingness to invest, innovate and lead the transition to zero emission mobility. This consultation provides an opportunity to ensure that future policy reflects the reality seen on the ground and supports the continued investment needed to keep the transition on track.
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