LEVC: LEADS THE WAY IN
SECURING A GREEN FUTURE FOR THE UK TAXI INDUSTRY BEYOND THE PLUG-IN TAXI GRANT
Article by Chris Allen Managing Director LEVC
www.levc.com
As the Government has confirmed its short-term commitment to extend the Plug-in Taxi Grant (PiTG) for a further twelve months at a reduced rate, it’s an important moment to reflect on the strides made in transitioning the London taxi sector to a more sustainable, green technology. Over 60% of the taxi fleet in London is now made up of the zero- exhaust-emission capable TX taxi, manufactured in the Midlands by LEVC since 2018. LEVC, along with its partners and representatives from the taxi trade, must consider how we continue to foster growth and adoption of urban e-mobility, as we face the reality of falling levels of Government support.
Since its launch seven years ago, the TX has achieved many impressive milestones. With over 11,000 units sold worldwide, the fleet has collectively driven more than 1 billion miles - equivalent to circling the Earth over 40,000 times. In turn, this has reduced the
amount of CO2 from entering the atmosphere through driven exhaust emissions by
around
300,000,000 kgs, demonstrating the real-world impact of LEVC’s zero-exhaust-emission capable ‘eCity’ technology.
The PiTG has been a crucial driver behind these numbers, as the UK and especially London, remains the biggest market for TX. While the success of the PiTG cannot be overstated, its potential conclusion in 2026 raises concerns and LEVC continues to call on Government to review its position on the grant to ensure the momentum of the transition isn’t lost. In Q1 2024, the grant fell from £7,500 to £6,000 and from 1 April 2025 it is reducing further to £4,000 for a period of 12 months.
LEVC would like to see additional incentives implemented, such as including black cabs in the VAT exemption for wheelchair accessible vehicles. In
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Scotland for example, the ‘Switched on Taxi’ loan has played a key role in supporting and modernising the local taxi trade by incentivising drivers to switch to a zero-exhaust-emission black cab with a 0% interest free loan, up to the value of £75,000.
In forecasting what is needed to provide the foundations for a healthy, growing taxi trade in London, it's important that we recognise driver numbers and taxis on the road have declined heavily from pre-covid levels, which hovered around 19,000 vehicles. Today that number has fallen to around 14,500, and this year alone, 800 - 1,000 older diesel taxis will reach the end of their licensed operating life. We hope that the forthcoming Taxi and Private Hire Action Plan refresh, due to be published by TfL in the coming weeks, will set the longer-term direction and policy intention needed to ensure the valuable momentum London has built is not lost. Around 40% of the taxi parc in London is still made up of polluting, diesel vehicles so there is still a long way to go.
LEVC estimates that to support the nine million strong population of London and the 20 million international visitors each year, the taxi trade needs to grow to a minimum of 18,000 vehicles and 20,000 drivers, returning to near pre-covid levels. This means at least one black cab per 500 residents or one per 1,100 international visitors. By contrast, there is an estimated one black cab per 450 people in Edinburgh, which serves a much smaller population of around 500,000 and four million visitors.
Achieving this number is paramount in supporting the critical demand and reliance placed on black cabs, which enable multi-modal public transport. Across the UK, black cabs service the mobility needs of critical infrastructure like hospitals, airports, schools and care homes while also supporting the night time economy with safe and reliable transport. We also know that in the last two years, London’s largest taxi rank at Heathrow Airport has seen some of the highest recorded movements since records began in 2010, showcasing the growing demand for black cabs in the capital.
MARCH 2025 PHTM
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