News analysis
ZEV mandate flexibility offers breathing room – but real challenges remain
Toby Poston, chief executive of the BVRLA, looks at how changes to the zero-emission vehicle (ZEV) mandate will work for fleets.
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n April, the government announced key updates to the zero-emission vehicle (ZEV) mandate, pledging greater support for UK automotive manufacturing in light of international trade pressures. Flexibilities were introduced that allow plug-in hybrids to continue until 2035. While manufacturers may have welcomed the breathing space, the revisions offered nothing for the used or rental markets – two critical segments for delivering EV adoption at scale.
Fleets remain the UK’s most effective engine for EV adoption. They account for the vast majority of new zero-emission vehicle registrations, act as a crucial feeder into the used market, and shape residual values that impact the whole industry. But unless the business case stacks up for fleet operators, the whole EV ecosystem begins to strain.
It’s true that ZEV targets for 2024 were technically achieved. But that success came not from organic market growth, but through heavy discounting, strategic manufacturer channel loading, and a sharp tilt toward fleet sales, Motability placements, and dealer pre-registrations. With consumer retail demand still lagging, the ZEV market is becoming a Jenga tower – vulnerable to collapse if key incentives like Benefit- in-Kind shift unexpectedly.
The used EV market is showing signs of life, but this too is being artificially inflated. Sky-high depreciation rates are enabling affordability – but at the cost of inflating new lease prices and encouraging widespread contract extensions. This ‘robbing Peter to pay Paul’ approach is creating a dangerous bottleneck that could see thousands of potential new EV registrations lost this year. These distortions reinforce what the BVRLA and its members have long understood: the EV transition
doesn’t begin and end with new car supply targets. True progress means supporting how EVs enter the market, where they go, and what happens to them after first use. That’s the message the BVRLA delivered directly to Future of Roads Minister Lilian Greenwood at a recent government reception, where we highlighted the urgent need for: ■ Targeted support for the used EV market ■ A clear decarbonisation roadmap for rental fleets
■ Policies that reduce resistance and smooth the path for the next wave of adopters.
These points formed the foundation of the BVRLA’s latest submission to the government’s ZEV Mandate consultation and the 2025 Spending Review, built with direct input from dozens of members across the fleet, rental, and leasing sector. We’re seeing progress, but not permanence. What looks like success in the headlines often conceals deeper issues of imbalance and fragility. Our role is to ensure that policymakers don’t confuse short- term wins for long-term solutions. That means calling for action on the parts of the EV market that are still under pressure - especially used and rental. These segments are essential to a just and effective transition.
The road to zero is not one sector’s responsibility alone. That’s why the BVRLA continues to expand its voice beyond Whitehall, collaborating with other trade associations, technology providers, and public sector bodies to shape a joined-up approach to net zero.
Above: Pressing fl eet electrifi cation questions will be discussed at the Fleets in Charge Conference.
While the updated ZEV mandate introduced welcome flexibility for manufactuers, the silence on infrastructure funding, grid capacity upgrades, and second-hand market stimulation is a missed opportunity. Without these interventions, the UK risks creating a two-speed EV market – one that serves headline targets but misses its deeper
www.businesscar.co.uk | May/June 2025 | 11
decarbonisation goals. Looking ahead, the BVRLA will continue making the case for smarter, more inclusive transport decarbonisation policy - one that doesn’t overlook the complexity of the market or the importance of long-term sustainability over short-term stats. Under the theme ‘Changing Demand or Demanding Change?’ the BVRLA’S Fleets in Charge Conference in July will explore the evolving relationship between policy, infrastructure, supply chains, and consumer appetite. Delegates will engage with the most pressing questions shaping fleet electrification, from technology and tariffs to training and trust.
Left: Toby Poston, chief executive, BVRLA.
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