The Government’s changes to the Zero Emission Vehicle (ZEV) Mandate “don’t go far enough” to address the core issues preventing fleets from transitioning to electric vans, according to fleet software specialist Peter Golding.
Golding, managing director at Fleetcheck, warned that the revisions, announced today, may actually delay electrification in the van sector by allowing operators to continue relying on diesel and hybrid models for longer.
He said: “The fundamental issues that fleets tell us they are facing when it comes to electric van adoption are that the available vehicles are too expensive, don’t have adequate capacity for their needs, and lack sufficient range.
“In creating a situation where diesel and hybrid vans can stay on sale until 2035, [the Government is] potentially just giving fleet operators an excuse to continue using ICE vehicles and ignore the issue for a few more years.”
While Golding acknowledged that electric van technology is improving, he questioned whether progress is fast enough to sway hesitant operators.
He said: “We are likely to see electric vans become more suitable for fleet use over time and almost every month, we see incremental improvements to range and payloads, while prices are becoming more attainable.
“However, whether this is happening at a pace sufficient to overcome operator objections to these vehicles is very much open to question.”
Golding drew a comparison with the company car sector, where tax incentives have played a significant role in boosting electric adoption.
He said: “In the company car sector, successful adoption has been powered by taxation advantages – especially zero or very low benefit in kind.
“There is nothing resembling the same level of assistance in the electric van market and, as a result, no real impetus for change.”
Golding added that the Government’s revisions focus too heavily on supply-side measures without addressing demand.
He said: “Today’s revisions are all about supply but it’s arguable that the real problem lies with demand.
“We speak to fleet operators almost every day who are unimpressed by the prospect of electric vans to the extent that their current plan is to operate their existing diesel vans for as long as possible.
“More needs to be done to change this mindset.”
With fleet demand for electric vans still muted, Golding said further action will be needed to shift momentum, adding: “There were only really two potential solutions to this problem – either incentives for adoption from the government or more capable vehicle designs. As it stands, the changes don’t go far enough.”
