Fleetcheck calls for radicle ZEV Mandate reforms
FleetCheck has urged the government to make radicle ZEV Mandate reforms, arguing that buyer demand does not support its sales targets.
Labour is currently holding a consultation around ZEV Mandate targets following pressure from vehicle manufacturers.
According to the Society of Motor Manufacturers and Traders, manufacturers offered more than £4.5m in EV discounts last year to boost sales. It says this is unsustainable and further government incentives are critical to accelerate the electrification of the UK car parc.
Peter Golding, managing director at FleetCheck, said: “The core problem with the ZEV Mandate is that there is a wide mismatch between real world demand for electric vehicles (EVs) and the artificially inflated supply that the policy creates. Any changes need to bridge that gap, which is especially apparent in the van sector.
“However, the leaked government ideas that we have seen in the press so far – allowing mild hybrids to stay on sale for longer, adding EVs made for export into manufacturer figures, or combining electric car and van sales – look more like window dressing. They might move the percentage targets a couple of points but don’t tackle the fundamental demand-supply issue.
“Really, what has been reported amounts to little more than tinkering and are unlikely to help resolve the problems facing manufacturers in any substantial manner.”
He continued: “Labour appears to have a strong political and ethical commitment to the targets and there is nothing wrong with that. Almost everyone acknowledges that transport has its part to play in reducing carbon emissions.
“However, the market needs much higher levels of support if those targets are going to be met. That might mean a 50% reduction on VAT for EVs, as the SMMT has suggested, or some other form of substantial subsidy.”
