As sales of electric vehicles start to rise, government targets for uptake are becoming increasingly ambitious. BVRLA members’ already purchase approximately half of all new vehicles sold in the UK. The association has pledged to increase this rapidly by 2025 if the government can match their ambition with the necessary infrastructure and tax support.
The phasing out of internal combustion engine vehicles
In November 2020 the Government announced it was bringing forward its target for the phase out of petrol and diesel vehicles to 2030.
Prime Minister Boris Johnson unveiled a Ten Point Plan for a Green Industrial Revolution, designed to stimulate green growth across a range of industries and UK regions. Road transport featured heavily, with the Government confirming that:
- The UK will end the sale of new petrol and diesel cars and vans by 2030, a decade sooner than was originally planned.
- Hybrid cars will have a further five years, with the sale of plug-in and full hybrids ending in 2035. They will be expected to deliver ‘significant’ zero emission range, and the Government will consult on a definition for this.
- In 2021 the Government will produce a delivery plan with key milestones for the phase out, a suggested way forward for post-EU emissions regulations in the UK and a consultation on the phase-out of HGVs.
The Government also announced new funding, including a £500m fund to support the supply side with investment into the development and mass production of electric vehicle batteries.
A further £800m (on top of the £500m announced at the last Budget) was pledged towards charging infrastructure. Finally, a further £200m was pumped into the Plug In Grant schemes (up to a new total of £582m) to ensure that these incentives are properly funded through to current end date of April 2023.
Watch our two minute summary video about the announcement below:
Five key asks on electric vehicles
- Government needs a delivery plan that takes account of the many diverse elements of the new car and van market.
- Government needs to ensure sufficient supply of vehicles to meet demand across different vehicle segments. Fleets need long term certainty of fiscal support for zero emission vehicles.
- Ofgem must review the current process for grid upgrades to minimise the costs and reduce time delays to fleets. In the meantime, the Government must ensure that chargepoints are accessible, affordable and reliable.
- Government needs a used EV strategy that protects residual values by ensuring there is a healthy second market for used BEVS.
- Any decision on hybrid vehicles must ensure there will be appropriate and affordable options available to fleets following 2030.
BVRLA Plug-in Pledge 2020
In July 2018, the BVRLA launched its first ‘Plug-in Pledge’. It said that the vehicle rental, leasing and fleet industry’s combined battery electric and plug-in hybrid vehicle fleet size would jump from 50,000 to 720,000 by 2025. By that time, the vehicle rental, leasing and fleet sectors would be buying 300,000 plug-in vehicles per year.
Two years on, and the pace of road transport decarbonisation has accelerated. The BVRLA therefore revisted the Plug-in Pledge, working with Frost and Sullivan, a global market intelligence, thought leadership consultancy operating in the personal and freight mobility industry, to create a new forecast. The 2020 Plug-in Pledge now says:
- By 2025, the vehicle rental, leasing and fleet industry will be registering 400,000 battery electric cars and vans each year. This means it will be responsible for 80% of sales in the UK.
- In terms of total fleet, the industry will own and operate 75% of battery electric vehicles on UK roads – around 900,000 vehicles.
- If you include plug in hybrid vehicles, the figures are even more impressive. By 2025, the rental, leasing and fleet industry will be registering nearly 570,000 plug-in cars and vans every year and will own and operate around 1.3m plug-in vehicles in total.
Get involved in the BVRLA electric vehicles campaign
Electric Vehicles Working Group
The group is designed to support the BVRLA’s policy work in this area by members providing expertise, knowledge and case studies which show the measures being taken by BVRLA members to reach net zero and to advise on the challenges that need to be overcome if the sector is to support the accelerated uptake of electric vehicles.
To get involved contact BVRLA Senior Policy Advisor, Catherine Bowen
Fleets in Charge Events
The BVRLA’s Fleets in Charge programme explores the latest technologies and business models and the policy environment that surrounds it. You will hear from expert speakers from across government, automotive and the fleet sector who will share key analysis and the latest insights into the current journey towards transport decarbonisation in the UK.
Electric Vehicle Research
