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EV & Sustainability

“Pace of change must reflect the reality” – industry reacts to ZEV Mandate review

Enterprise Mobility, Zenith, Vertu Motors, and United Rental Group said that this provides the Government with an opportunity to reset the mandate.

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Businesses from across the automotive and transport sectors have welcomed the Government’s decision to review the Zero Emission Vehicle (ZEV) Mandate, which aims to restore confidence in the UK’s transition to electric vehicles (EVs).

Enterprise Mobility, Zenith, Vertu Motors, and United Rental Group released a statement supporting the review, and said that it provides the Government with an opportunity and responsibility to reset the mandate, protect UK jobs and investment and put the transition back on a credible path.

The businesses added that they look forward to working with the Government on correcting this course.

The statement said that the UK’s transition to EVs will not be achieved through regulation and targets alone, and that it requires a practical partnership between Government, industry and consumers to create the right conditions.

It added that the progress in the UK EV market has only been made possible through the investment by the automotive industry, supply chain, vehicle financers, customers and the taxpayer, and that this is not a sustainable footing for increasingly ambitious targets.

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The businesses also warned that the UK’s policy is out of step with the EU’s, which has already made the conclusion that 2030 is too soon.

The companies said that the lesson is clear: infrastructure, technology and affordability must all be present if the shift to electric vehicles is to succeed.

The statement called for Government to set out plans for a more realistic trajectory, greater flexibility for manufacturers and stronger measures to stimulate genuine consumer demand across both new and used vehicles.

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Ryan Johnson, senior vice president and managing director for UK and Ireland at Enterprise Mobility, said: “We applaud the government’s decision to adjust the mandate, and we support the UK’s transition to electric vehicles, but the pace of change must reflect the reality on the ground.

“As one of the UK’s largest rental and fleet operators, we see these challenges first-hand.

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“Our customers need vehicles that work for their journeys, budgets and businesses — with the confidence that the charging infrastructure is there when they need it.

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“A pragmatic and realistic approach will give businesses the confidence to invest while ensuring drivers are brought with us.

“EVs need to be an attractive, affordable and practical choice. Getting the framework right now will help make the transition sustainable for the long term.”

Richard Jones, CEO at Zenith, added: “We welcome the Government’s review of the ZEV Mandate as an opportunity to set a transition pathway that works for all customers while delivering a net benefit to the UK economy.

“Zenith is a strong advocate of the move to electric vehicles, however, the pathway must reflect the realities facing customers and be matched by policy action that supports both new and used car drivers.

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“The transition will only succeed if used car buyers are prepared to adopt BEVs at huge scale, yet they remain completely overlooked by policy actions and support.

“The motorists yet to switch face different economic barriers to early adopters, and addressing those challenges will be critical.

“For example, there is a two-tier running cost reality for drivers making the switch.

“If you can charge from home, you will save money by switching to a BEV, and if you mainly rely on public charging, it will cost you more when compared to a petrol or diesel car.

“A successful transition must balance ambition with affordability, support UK investment and consumer confidence, and ensure the benefits are felt across the wider economy.”

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Robert Forrester, CEO at Vertu Motors, said: “The UK new car market has suffered a number of years of dislocation due to the state intervening via the ZEV mandate.

“Its targets and the threat of fines have led to billions of pounds in discounts on battery electric vehicles to increase demand.

“This has meant fewer jobs, lower investment and reduced economic activity across the whole sector with profit pools reduced.

“This is only set to worsen as the targets deviate from reality at an increased pace.

“The industry will be in an awful place with no change.

“It is a good sign from the new Government that it wants to create jobs, wealth and economic activity ahead of delusional green targets. The consultation is therefore welcomed.”

Per Voegerl, CEO at United Rental Group, added: “For the transition to electric vehicles to work, it must work for the thousands of small and medium sized businesses across the UK which rely on vans every day.

“For electric vans in particular, higher upfront costs, concerns around battery range and uncertainty over residual values continue to make the switch difficult, especially for smaller businesses with limited capacity to absorb additional costs.

“Businesses need confidence that switching is commercially viable.

“The ZEV Mandate review is an opportunity to address the gap between targets and real-world demand – supporting decarbonisation while ensuring businesses have the choice, affordability and flexibility they need to make the transition successfully.”

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