UK van market overlooked in electric vehicle sales talks – AFP
The UK van market has been overlooked in government talks with manufacturers around the ZEV Mandate, according to the Association of Fleet Professionals (AFP).
The government met vehicle manufacturers this week to discuss the electrification of the UK car parc. It confirmed that ZEV Mandate targets would remain in place, but said it would be flexible around how targets are calculated.
This could mean allowing vehicle manufacturers to count exports towards electric vehicle sales targets.
However, the AFP has said that this would do little to encourage UK fleets to go electric and urged the government to introduce sector-specific incentives.
UK van market
AFP chair Paul Hollick said: “The problem with electric van sales is not so much that they are lower than expected, as seen in the electric car market, but that they appear to have stalled altogether around the fiver per cent mark. Fleets are effectively refusing to buy them for practical reasons and forcing manufacturers to make increasing percentages of vehicles under the ZEV Mandate doesn’t solve that core problem.
“It’s positive that the government is reportedly in what it calls ‘listening’ mode but they appear to be approaching their rethink from the point of view of helping manufacturers offset limited demand rather than finding ways to dramatically encourage fleets to purchase. We think that creates an unsustainable situation.”
According to the Society of Motor Manufacturers and Traders, electric vehicle van sales rose last month for the first time in five months. It was up 61.8% to 2,263 units, with EV registrations representing 8.4% of the whole new LCV market in October.
However, over the course of the year uptake has fallen by 1.9% compared with the same period last year, accounting for a 5.6% market share – significantly below the level mandated.
Hollick continued:
“Nothing changes the core fact that the rapid electrification of electric car fleets was largely powered by massive benefit in kind tax incentives. A similar carrot may be necessary for electric vans to generate the kind of momentum that the government wants to see.”
