Toby Poston, BVRLA Chief Executive comments: The Government’s oft-repeated, long-term economic priorities of stability, investment and growth are also exactly what the electric vehicle market requires. But the ambitious ZEV Mandate targets mean that these BEV market essentials need to start being delivered in the coming weeks and months, not years.
A bit like a General Election, the recent ZEV Mandate consultation saw the Government ‘go to the country’ in a bid to inform and endorse its car and van decarbonisation plans.
So where are we? Depending on where you get your news and what mood you are in, we either scraped to the 2024 ZEV Mandate car target or fell short. The van target was a big red-flag fail.
Achieving even these results came at a huge cost for discounting OEMs and depreciation-hit vehicle owners. As a result, the 2025 targets are looking a terrifyingly long-way off and no-one should be fooled by a likely plate-change month, VED-increase-avoiding surge in March’s BEV registrations.
And what can the Government do to change the narrative?
The easiest, cheapest and likeliest option is to extend or increase the current ZEV Mandate flexibilities that make it easier for manufacturers to hit targets and less painful if they miss. For example, the BEV registration share targets between 2025 and 2030 would not change, but there could be more ‘leeway’ in hitting them. The ‘real’ required rate of BEV registration growth would slow and, for many, be more comfortable.
A bolder Government could be to double-down on its transition ambition and pay for the incentives and support required to stimulate the BEV demand. This is desperately needed in both the new and used retail markets. There are many things on this ‘wish list’, ranging from a relaxation of the incoming Expensive Car Supplement (ECS) charge for electric cars, to used BEV grants, or VAT cuts for new or used cars and public charging.
Following the ZEV Mandate Consultation, this week’s Spring Statement is the first opportunity for the Government to show that it has a clear understanding of the national situation and a plan to deal with it.
Don’t hold your breath, but also don’t be surprised if this vital policy area does get some focus…
