News analysis


EV progress or policy pitfall?


Toby Poston, chief executive of the BVRLA, looks at the state of road transport decarbonisation in 2025.


he UK Government has set some of the most ambitious road transport decarbonisation targets in the world, but ambition alone is not enough. In its recent response to the Zero Emission Vehicle (ZEV) Mandate consultation, the BVRLA called for urgent action to ensure long-term success. The BVRLA, which has two in five of UK electric vehicles on its member fleet, has been in close discussions with members, government officials, and industry bodies to assess the most pressing challenges in fleet electrification. Its conclusion? Without targeted interventions, the UK’s transition to zero- emission vehicles could stall. One of the biggest concerns for fleets and businesses is the state


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of the used battery electric vehicle (BEV) market. As more new electric vehicles enter circulation, the industry is struggling to absorb the growing supply of second-hand models. This imbalance is driving higher depreciation rates, which in turn pushes up new vehicle prices – a challenge that threatens affordability for both businesses and consumers.


“One thing is clear: the transition to zero-emission vehicles cannot be left to chance.”


For the ZEV Mandate to succeed, a healthy, functioning used BEV market is essential, without it, businesses will face increased leasing costs. The government must take steps to support demand, whether through incentives, taxation adjustments, or measures to build trust in the longevity and value of used electric cars. The fluctuating timeline for the ICE ban has eroded consumer confidence and destabilised the used BEV market. Decarbonisation efforts, while crucial, present significant hurdles. When the previous government announced a five-year delay to ICE phase- out targets, to 2035, it weakened the momentum towards electric vehicles.


Above: The BVRLA’s #happyEVafter campaign is helping drive change.


The vehicle rental sector plays a crucial role in expanding access to electric mobility, but it faces unique barriers that hinder widespread EV adoption. Unlike company car schemes, where electrification has gained significant traction, demand for EVs from rental customers lags behind the business sector. At the same time, charging infrastructure remains a major hurdle, with high installation costs and lengthy planning processes slowing progress. The BVRLA argues that forcing supply into the sector without addressing these fundamental issues could have counterproductive effects, risking a surplus of EVs


with limited customer demand. Instead, strategic government support – such as infrastructure investment, financial incentives, no-cost policy changes to give rental cars additional ZEV Mandate credits and clear policy guidance - could help unlock rental sector demand and drive wider adoption.


The BVRLA sees the ZEV Mandate consultation as a critical opportunity for the government to reassess its approach and deliver a comprehensive set of measures to drive long- term demand. While ambitious targets are necessary to drive change, policymakers must also deliver practical solutions that reflect real-world challenges. As fleets await the outcome of the consultation, the industry remains at a crossroads. Will the government step up with policies that match its ambitions, or will the market be left to navigate an uneven playing field?


www.businesscar.co.uk | March/April 2025 | 11


One thing is clear: the transition to zero- emission vehicles cannot be left to chance. Without strategic action to stabilise the used BEV market and stimulate rental demand, fleet electrification could face unnecessary obstacles – putting the UK’s net-zero goals in jeopardy. Now, all eyes are on policymakers to see if they will deliver the bold leadership that fleets, businesses, and consumers need.


The BVRLA continues to champion change through initiatives like the #happyEVafter campaign. These programs aim to tackle key industry pain points at a policy level, while supporting members and their customers through enhanced learning and operational guidance too.


Left: Toby Poston, chief executive, BVRLA.


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