The ZEV mandate can provide fresh clarity and impetus to the UK’s transition to zero emission vans.

The recently terminated Plug-in Car Grant (PiCG) scheme was a resounding success, being applied to over 500,000 car sales, and the UK is on track to hit its current electric car take-up targets. Sales of electric cars continue to grow, with new electric vehicle registrations making up 16% of all new car registrations in June 2022, up from 10% in June last year. The high cost of petrol and diesel, which are likely to continue in the long-term, mean it is now much more economical to run an EV than an ICE vehicle. Given this, it is no surprise that, according to a recent Sage Insurance survey, just over two-thirds of Britons are considering making the switch to an electric vehicle in the near future.

However, cars are not the only vehicles on British roads. The termination of the PICG scheme marks a new phase in the transition, as the Government begins to target the electrification of other categories of vehicles.

There were 4.6 million vans in use in the UK in 2021 – almost 10% of the estimated 40 million vehicles of all types on the country’s roads. Just under 1% of these vans were electric. Of the 24,588 new van registrations in June 2022, only 1,944 were fully zero emission vehicles (ZEVs). Although this figure is still relatively low, it still represents double the percentage of new van registrations in June last year, during which only 4% of all new van registrations were electric.

Transport is responsible for the most CO2 emissions of any sector in the UK, and road vehicles are the highest polluting segment of the transport sector. Given this, there is an urgent need to electrify vans in Britain if the country is to achieve its goal of net-zero emissions by 2050. New AutoMotive’s Electric Van Count data for June shows that over 90% of new van registrations for that month were ICE models, with the overwhelming majority of these being high polluting diesel vehicles. Whilst the number of new electric van registrations is a significant improvement on figures from June last year, electric vans still account for a relatively marginal portion of new vans being sold. The Government still has a vital role to play in increasing the take-up of electric vans.

Upon announcing the termination of the PiCG scheme, the Government explained the need to refocus funding towards the main barriers to the EV transition, including public charging and supporting the purchase of electric road vehicles other than cars.

Transport minister Trudy Harrison said;

“Having successfully kickstarted the electric car market, we now want to use plug-in grants to match that success across other vehicle types, from taxis to delivery vans and everything in between.”

The support targeted towards increasing the number of electric vans will come in the form of the Plug-in Van and Truck Grant (PiVTG) scheme. The scheme functions in a similar way the PiCG scheme worked and is applicable to both zero emission and ultra-low emission vans. It significantly reduces the upfront cost of electric vans, with the grant ranging from £2,500 to £5,000 depending on the size of the van.

The PiVTG scheme is a positive initiative by the Government and, in combination with the increased price of diesel and the significantly lower running costs of EVs compared to ICE alternatives, should help drive an increase in the uptake of electric vans in the medium to long term. However, more must be done to ensure the uptake of electric vans does not fall even further behind the uptake of electric cars. Every new ICE van registration means a polluting vehicle that will stay on the road for years to come and is a setback to the Government's net zero goal. Ambitious targets for the take-up of zero emission vans must be implemented to further encourage the move away from ICE vans.

The upcoming ZEV mandate provides an opportunity for the Government to implement such targets and to ensure that there is clarity and impetus in the UK’s transition to zero emission vans.  Ambitious targets will be crucial to achieving the same rapid rise in the take-up of zero emission vans that has been seen among electric cars.

New AutoMotive called for a target of 15% of all new van sales to be zero emission by 2024 when the ZEV mandate comes into operation in its recent response to the Government’s ZEV mandate consultation. Given that 8% of new van registrations for June were electric, this target is both realistic and achievable.

Strong targets are also important to attract jobs and investment to the UK. Vauxhall, a British company who manufactures their electric vans in the UK, sold the most electric vans of any manufacturer in the UK in June. Ambitious targets set by the Government will signal to manufacturers like Vauxhall that demand for electric vans will continue to increase, lead to the creation of jobs in Britain, and help the British automotive industry become more attractive to investors.

Most importantly, the ZEV mandate is a chance to address the high levels of uncertainty around the future direction of the market for vans, more so than for cars. There are much fewer prediction models for vans, and they are at a nascent stage of the market currently in the UK. Going forward, New AutoMotive’s new Electric Van Count tool will help provide transparency and measurability in the take-up of zero emission vans in the UK.