There could be trouble ahead in the wake of legislative changes and other issues preventing a wholly seamless transition to battery-electric fleets. By Toby Poston, chief executive, BVRLA.
In its response to the Government’s consultation on the Zero Emission Vehicle (ZEV) mandate, the BVRLA urged policymakers to take decisive action to ensure a fair, sustainable transition. The UK has some of the most ambitious road transport decarbonisation targets in the world – but fleet operators warn that ambition alone won’t be enough.
The BVRLA, which has two in five of UK electric vehicles in member fleets, has engaged extensively with members, industry bodies and government officials, identifying three critical areas that need urgent attention if the UK is to successfully move to a zero-emission fleet future.
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A sustainable used BEV market is essential
The increase in new EV registrations is welcome progress, but the growing supply of second-hand electric vehicles poses a major challenge. Without strong demand, depreciation remains high – driving up leasing costs and making new BEVs less affordable for businesses and consumers alike.
The BVRLA warns that a healthy, stabilised used market is critical to long-term fleet electrification. Without intervention, residual values will continue to fall, making BEVs less attractive as an investment and slowing progress toward net zero. The Government must take urgent steps to stimulate demand, whether through tax incentives, consumer education, or measures to build trust in second-hand EVs.
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Electric vans need policy support
While the company car market has seen major EV adoption, the transition for electric vans has been far more challenging. Many operators want to electrify their fleets but face barriers including higher costs, payload limitations and infrastructure constraints.
Regulatory hurdles, such as the requirement to MOT a 4.25-tonne electric van as an HGV, create unnecessary barriers to adoption. The BVRLA is calling for simple, low-cost policy changes that would remove these roadblocks -– unlocking the potential for tens of thousands of electric vans to hit UK roads in the coming years.
Without action, fleet operators warn that EV adoption in the commercial sector will continue to lag behind – undermining the UK’s ability to meet its decarbonisation goals.
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Rental EV demand needs a boost
The rental sector is a key gateway for many businesses and consumers to experience EVs first-hand, but demand is currently well behind the corporate fleet sector. Infrastructure challenges, high upfront costs and uncertainty around residual values are making it difficult for rental providers to commit to large-scale EV adoption.
The BVRLA cautions that forcing supply into the rental sector without addressing demand-side issues could lead to unintended consequences – leaving vehicles underutilised and driving costs higher. Instead, a targeted approach, including incentives for rental providers and support for charging infrastructure, would allow the sector to play a crucial role in accelerating mainstream EV adoption.
Fleet operators have led the way in driving EV adoption, but the market is reaching a tipping point. Without bold government action, the progress made is at risk. The ZEV mandate is a vital opportunity for policymakers to address the structural challenges holding back further adoption.
For businesses to continue investing in electric fleets with confidence, the Government must act to create the right conditions and policy measures in place for long-term success.
The BVRLA continues to champion change through initiatives such as the #happyEVafter campaign. These programmes aim to tackle key industry pain points at a policy level, while supporting members and their customers through enhanced learning and operational guidance too.