Last week BVRLA Chief Executive Gerry Keaney was invited to give evidence to the Transport Select Committee in a one-off session looking at EVs. Gerry represented the views of BVRLA members alongside a host of other industry experts from the Society of Motor Manufacturers and Traders (SMMT), FairCharge, the National Franchised Dealers Association (NFDA), Auto Trader and What Car?.
Gerry’s three key messages to the Committee were:
- Attention needed for Used EVs – this is an area that needs intervention as they are the fundamental building block on which the whole system lies.
- ZEV mandate is creating pressure – by setting EV supply targets for the UK new car and van market, the mandate is putting huge pressure on fleet segments – particularly rental and new and used retail motor finance – that don’t benefit from customer incentives.
- Necessity of incentives – incentives have been crucial in driving the EV transition. Benefit in Kind (BiK) has fuelled the shift so far and salary sacrifice schemes have made EVs accessible to average people. It is vital for the government to recognise the need to sustain these incentives to match the ambitious goals. Now is not the time to withdraw support.
There was unilateral agreement from all witnesses that fleet is the EV adopter poster child, which is mainly down to salary sacrifice and incentives on company cars. Concerns were expressed that demand outside of these measures has no real incentivisation to help it keep pace with supply. The other speakers agreed about the volatility in the used electric vehicle market. Gerry said, “Without a strong used car market for electric vehicles there will not be a strong retail market for new electric vehicles. The two are absolutely interconnected.”
