Rental firms report weak EV demand and fear even greater numbers

Rental firms are facing intense pressure from manufacturers for their orders to match the percentages of zero emission vehicle sales stipulated in Government targets.

Most have added some electric vehicles (EVs) to their fleets, but they reject the idea that they can accommodate the zero emission vehicle (ZEV) mandate’s EV thresholds of 28% of cars and 16% of vans in 2025. 

The latest British Vehicle Rental Leasing Association (BVRLA) Industry Outlook Report suggests that only a tiny proportion of rental customers want battery-powered vehicles. 

Demand is non-existent among in-bound tourists and leisure customers, and minimal among business clients, it says. 

This will need to change if the sector is to transition to EVs, says the BVRLA. 

Currently, the only rental opportunities for EVs lie in supplying replacement vehicles for battery-powered cars and vans that are off the road for maintenance and repair, and for the limited number of companies operating electric light commercial vehicles (eLCVs) that are looking for a flexi-hire supply agreements. 

Neither of these categories matches the volumes stipulated by the ZEV mandate, warns the report.

Moreover, the simple economics aren’t working, says the BVRLA. The higher depreciation levels of EVs, compared to internal combustion engine (ICE) vehicles, dictates higher rental fees, which means customers are booking cheaper ICE cars and vans. 

The cost of installing sufficient charging infrastructure at rental stations to recharge a fast turnaround fleet is prohibitively high, and securing power capacity to rapid charge scores or even hundreds of vehicles is eye-wateringly expensive, it adds. 

Plus, recharging vehicles at the end of a hire period delays their availability to the next customer.

Rental companies say demand for their vehicles reflects the powertrain mix of the UK’s total vehicle parc. If their fleets are to reflect the EV percentages of the ZEV mandate, the entire ecosystem – depreciation, vehicle capabilities, and charging infrastructure - needs to improve rapidly, alongside targeted support from the Government.

Gerry Keaney, BVRLA chief executive, said: “BVRLA members and their customers are required to maintain their leading role in meeting ambitious road transport decarbonisation targets. 

“Those targets only ramp up and the report reiterates the sector’s need for support that matches the ambitions.”

The BVRLA’s Industry Outlook Report 2025 was launched as part of the BVRLA Industry Outlook Conference earlier today (Thursday, December).