Fears ZEV mandate could impact UK new van supply

Concerns have been raised that the Government’s zero emission vehicle (ZEV) mandate could further squeeze the supply of new diesel vans coming to the UK.

Ministers published proposals in March, which would force manufacturers to sell a certain proportion of electric vehicles (EVs) in the lead up to 2030.

In 2024, the target would be 22% for cars and 10% for vans, with the proportion of zero emission vehicles increasing year-on-year before reaching 80% and 70%, respectively, by 2030 and 100% by 2035.

Discussing the Government’s plans on Fleet News at 10, Duncan Webb, fleet director at the AA, was fearful that as manufacturers try to hit the zero-emission targets it could "distort” market behaviour in the short term, especially where vans are concerned.

A manufacturer that has not got a great electric van line-up right now may be deterred from selling diesel vehicles in the UK to avoid paying credits and offsets to other companies, he explained.

“My fear is people are going to start playing games around delivery volumes to the UK market,” he added. “It's just another thing on top of all the current supply problems we've had for the past couple of years.”

Following the technical consultation on the design of the ZEV mandate for new cars and vans in June 2022, and the green paper on a new road vehicle CO2 regulatory framework in July 2021, the Government is now seeking views on the final proposed regulatory framework.

It is specifically consulting on the level of ZEV uptake (trajectories); how allowances and credits could be allocated and used; flexibilities including banking, borrowing and transfers between schemes; derogations and exemptions; how to regulate the non-ZEV portion of the fleet; and how the ZEV mandate and non-Zev CO2 regulation interact.

Appearing alongside Webb, Lorna McAtear, fleet manager at the National Grid, says that the Government has "listened" to the fleet industry in setting out proposed targets for manufacturers for EV production, following last year's initial consultation, but she urged fleets to have their say on the latest proposals.

"It's very good news that the ZEV mandate is still tough, so we do need everybody to respond to this latest consultation, because I think for all of us as fleets, we need that target, we need that trajectory and we need to move forward," she said.

The consultation on the details of the Government’s ZEV mandate for cars and vans, which closes on May 24, has been launched to coincide with the publication of its policy paper. 

Paul Hollick, chair of the Association of Fleet Professionals (AFP) also welcomed the Government proposals around the ZEV mandate but believes ministers can do more to incentivise the market. 

"The manufacturers are going to be building all these products for us, but we need to stimulate a market for people to want to buy them," he told Fleet News at 10.

"We need to try and drive this marketplace. Just because manufacturers are going to produce all these EVs it doesn't necessarily mean, consumers are going to be buying them."

To have you say on the Government’s ZEV mandate before the deadline, click here. 

Fleet News at 10 features a guest panel of leading fleet decision-makers discussing the month’s biggest news and hottest industry topics.

The next webinar take place on Friday (April 28) from 10-11am, with the panel due to discuss: leasing consolidations; the scrapping of smart motorways; the UK's approval of hands-free automation for use on motorways; SMR options for EVs; managing costs versus having an attractive and fair car scheme; tyre policies; and managing damage.

Register for Friday’s Fleet News at 10 by clicking here.