BVRLA Chief Executive, Toby Poston, comments: As we approach a year since the last General Election returned a Labour Government, there is a much more tangible milestone coming up. Next month will see the Government announce its Industrial Strategy and the outcome of its Comprehensive Spending Review. Both will include long-term commitments relating to all industries, issues, and individuals living in the UK.
It is an opportunity the Government cannot afford to miss if it remains serious about supporting the transition to cleaner, greener road transport. While last month’s changes to the terms of the Zero Emission Vehicle Mandate made targets more symbolic and less painful, they do nothing to drive further demand for electric vehicles or address the supply-demand imbalance in the used market.
The transition impacts every single BVRLA member. Making sure the market is set up for long-term success is non-negotiable and the industry is already playing its part where it can.
Gaps remain and the targets – however symbolic – remain a major risk without government support.
I’m pleased to report that the Government is listening to the needs of our members, with key stakeholders actively engaging with us to have open discussions on how to deliver decarbonisation in a way that works for everyone. The Department for Transport and HM Treasury are two of the key departments that the team and I are representing member views to, as we discuss collaborative ways forward with decision makers.
Although constructive conversations don’t automatically equal tangible outcomes, every meeting makes our voice louder and our needs better understood. The Future of Roads Minister, Lilian Greenwood is one of the key stakeholders the BVRLA is in direct dialogue with.
Just last week, BVRLA Chair Lakshmi Moorthy and I caught up with the Minister to talk about the impact of the recent ZEV Mandate regime changes, the volatility within the used electric vehicle markets, the decarbonisation challenges facing van and rental fleets, and the need to make public charging more affordable and accessible.
We will be with the Minister again this Thursday when she attends a round table being chaired by the BVRLA. Together with member and fleet representatives we will explore the solutions for the van sector specifically. The Government has already extended the Plug-in Van Grant and is conducting a consultation to consider removing the regulatory barriers holding back adoption of large electric vans. They are positive steps, round tables such as this are vital in influencing the speed and direction of further progress.
Then, a few weeks after the Industrial Strategy is announced, Minister Greenwood will address delegates as part of the Fleets in Charge Conference in July. There, she will will outline the Government’s position on the fleet sector’s transition to zero-emission vehicles (ZEVs) before Richard Bruce from the Office of Zero Emission Vehicles takes questions from the audience.
Underpinning all engagements is the need to stabilise the used electric vehicle market.
Latest SMMT figures show demand for used EVs is on the up, but the increases are failing to keep up with the increasing supply being driven by the strides taken by the fleet sector. Those leading the way, notably motor finance providers, leasing companies and their fleet customers, are shouldering the weight of the transition. Without the load being shared, they will creak under the strains created by high supply outstripping demand and volatile shifts in residual values.
The used market needs attention and decision makers are beginning to take note. As ever, actions speak louder than words. Next month’s announcements will tell us if the Government is able to bring positive rhetoric into reality.
