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ZEV Mandate changes must prioritise vans, says FleetCheck

Sales of electric vans are 16 percentage points away from ZEV Mandate targets in the year-to-date.

ZEV Mandate vans
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FleetCheck said that the Government should prioritise vans if it is to make any changes to the ZEV Mandate, as van sales are much further away from targets than cars.

The Government is reportedly considering reducing the ZEV Mandate target for electric cars to 50% of total sales in 2030, down from 80%.

Barrie Wilson, strategic relationship manager at FleetCheck, said that sales of electric vans are 16 percentage points away from ZEV Mandate targets in the year-to-date, while car sales are only five percentage points off.

He warned that fleets are responsible for the majority of new van sales and are reluctant to purchase electric models, due to poor residual values, high upfront costs, limited range which is further reduced when carrying a heavy payload and issues with accessing charging.

Wilson said: “There has been extensive reporting during the last few days that a shake-up of the ZEV Mandate is imminent but the conversation has almost exclusively been about cars. 

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“To an extent, that is understandable. There are roughly 35 million cars in the UK compared to five million vans. Electrification of the car parc will affect many more people and thanks to the investment needed, is having a huge impact on the viability of the UK motor industry.

“However, vans are an essential component of UK industry and so far, have failed to catch on in electric form to anything like the extent the Government’s targets are demanding.

“We need to ensure they are not an afterthought in any revision of the ZEV Mandate.

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“Fleets buy the vast majority of new vans and are rejecting electric options because the compromises they demand make them almost impossible to adopt for many operators.

“In the company car sector, where electrification has been relatively successful, these issues were much less pertinent.

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“Also, there was a huge incentive in the shape of zero or very low benefit in kind taxation and most drivers were able to install their own low cost, off-road, overnight charging.

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“The van market is a completely different situation.”

He warned that van fleet electrification is unlikely to improve significantly unless more capable models become available.

Wilson said: “Range, payload and cost are all improving but not really quickly enough to make a massive impact on electric van acceptance.

“Even if the Government introduced higher incentives on current designs, which is unlikely, they still wouldn’t be suitable for most applications.

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“We speak to many fleet operators who say if new diesel vans are not available, they are more likely to continue to operate their existing vehicles for as long as possible rather than electrify.

“Any potential rethinking of the ZEV Mandate needs to reflect this reality.”