There has been a “cautious” welcome for today’s government revisions to the Zero Emissions Vehicle (ZEV) Mandate from the Vehicle Remarketing Association (VRA) – but more help will be needed.
Philip Nothard, chair at the VRA, said: “The good news is that the government has listened and made material changes. There has been a general recognition that existing targets were proving unrealistic and a relaxation was needed that accounted for real world market conditions.
“Moves such as allowing hybrid cars and diesel vans to stay on sale until 2035 will provide a degree of breathing space for manufacturers, as will the greater flexibility around production caps and car and van credits. Notably, it does feel as though the particular difficulties the new electric van market is facing have been recognised. Overall, we’re giving these moves a cautious welcome.
“It’s also encouraging that the DfT says in its announcement that the situation will be kept under review. It’s quite likely that further changes will be needed in the future, especially in light of the uncertainty that now hangs over UK motor manufacturing because of the Trump tariffs. It’s a fluid situation.
“However, the big issue for the VRA – and for the wider car and van sectors – remains the used market. We were signatories to a letter sent to government by the British Vehicle Rental and Leasing Association last week making a strong case for more support during the transition to electrification, and we’d like to see signs that the government recognises the growing problems we are facing.
“While used electric cars are currently selling quickly, residual values are extremely poor and there are much greater volumes of electric vehicles (EVs) heading to the used market very soon. More needs to be done to make buying a used EV practical and cost-effective for more people, which means everything from assistance with purchasing to creating a more accessible and affordable charging infrastructure.”