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New incentives for electric vans ‘crucial’ for zero emissions transition
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New incentives for electric vans ‘crucial’ for zero emissions transition

Encouraging demand for electric vans must be part of the Government’s plans to help the car industry meet zero-emission vehicle (ZEV) targets, the Association of Fleet Professionals (AFP) has warned.

Ministers met with automakers this week for crucial discussions around the ZEV mandate. and plans to end the sale of new internal combustion engine (ICE) vehicles from 2030.

Following the meeting with manufacturers, he reiterated his commitment to the 2030 deadline for phasing out “cars powered solely by internal combustion engines” and to “achieving the ZEV transition from way that also supports the UK’s economic growth.” details in due time.

There is no mention of vans, but again a clear indication that some hybrid technology will be allowed, such as previously revealed by Fleet News.

THE ZEV mandate requires more than a fifth (22%) of cars and 10% of trucks sold by manufacturers to be electric this year.

The targets become stricter each year ahead of the 2030 deadline for phasing out petrol and diesel vehicles.

While nearly 300,000 new electric vehicles will be put into circulation in 2024, the professional body SMMT claims this represents 18.1% of the market – an increase compared to 2023, but still significantly lower than the target of 22% for this year and the 28% that must be achieved in 2025 under the ZEV mandate.

In the meantime, fully electric vans currently represent a market share of 5.6% – significantly below the 10% required by the end of the year.

AFP chairman Paul Hollick said “flexibilities” that would be considered by the Department for Transport (DfT) – such as allowing emissions from manufacturers’ factories to be taken into account or including exported vehicles manufactured in the count in the UK – would do nothing to encourage vans. fleets to be electrified.

“THE Van plan that we launched with BVRLA and other parties a few months ago explained the demand issues that are driving the slow adoption of electric vans: insufficient public and private charging infrastructure, regulatory barriers , affordable price and availability of suitable products,” he added.

“The problem with electric van sales is not so much that they are below expectations, as we see in the electric car market, but that they seem to have stagnated around the 5% mark.

“Fleets are effectively refusing to buy them for practical reasons and forcing manufacturers to make increasing percentages of vehicles under the ZEV mandate does not solve this fundamental problem. »

He continued: “Based on reports from recent meetings, they appear to be approaching their overhaul from the perspective of helping manufacturers compensate for limited demand rather than finding ways to significantly incentivize fleets to buy. We believe this creates an unsustainable situation.

The AFP says only incremental technological change improving the range and payload issues of electric vans would resolve the fleet’s main objections, so potential government action lies instead in areas such as infrastructure, regulation and financial incentives.

“Again, as mentioned in the Van Plan, we need to find ways to quickly make more chargers offering cheap energy available in more places and more accessible to vans, as well as resolve lingering issues around permitting and the operation of 4.25 tonne vans. » Hollick said.

“Improving these scenarios could potentially create at least some momentum.” »

Hollick believes a carrot similar to low company car tax rates may be needed for electric vans to generate the kind of momentum the government wants to see.

“Companies might need a real financial benefit to offset the operational issues they have with electric vans,” he said.

The government announced in the Fall budget that it will provide £120 million in 2025/26 to support the purchase of new electric vans through the subsidy for plug-in vehicle.

Hollick concluded: “We are currently in a situation where it appears that many fleets, having discovered during the pandemic that they can practically extend replacement cycles by several years, are considering holding on to existing diesel vans until the situation regarding electric vans is improving. .

“Pushing ever more production volume into a market where this kind of attitude is present makes little sense. »