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Demand for ZEVs Not as Strong as Expected for 2025, Dealers Call for Mandate Delay | Motor Auction Group

Demand for ZEVs Not as Strong as Expected for 2025, Dealers Call for Mandate Delay

The demand for Zero-Emission Vehicles (ZEVs) is not as strong as originally anticipated for 2025, prompting commercial vehicle dealers to call for a delay in the mandate. Dealers argue that customer demand and charging infrastructure need significant improvements before the mandate can be effectively enforced. In addition to vehicle manufacturers, members of the National Franchised Dealers Association (NFDA) have voiced their support for the delay.

Figures from 2024 reveal that electric vans account for just 5.8% of the market share, according to NFDA Chief Executive Sue Robinson. This marks a slight decline of 0.1% compared to 2023. The statistics clearly show that diesel vans remain the preferred choice for most customers. Several factors contribute to this preference, including faster refuelling times, higher payload capacities, greater range, and lower upfront purchase costs. Moreover, the nature of work for many van users, who rely on their vehicles for 24/7 call-outs, makes the necessity of charging a significant issue. These customers need their vehicles to be operational without lengthy delays, making the current charging infrastructure inadequate for their needs.

In addition to vehicle demand, the state of charging infrastructure remains a critical barrier to widespread ZEV adoption. Many regions, particularly rural and commercial areas, lack sufficient charging stations, which poses a further challenge for businesses that rely on vehicles for quick turnarounds. This infrastructure gap must be addressed to ensure that electric vehicles are a practical option for commercial use.

The Society of Motor Manufacturers and Traders (SMMT) has warned that the industry could lose nearly £6 billion in 2024 due to weak demand for ZEVs and the pressure to meet the set mandate. Currently, the UK Government's ZEV mandate for 2025 requires 16% of all new vans registered in 2024 to be zero-emission. However, with demand remaining largely unchanged year-on-year and resistance from both manufacturers and dealers, those affected in the industry are awaiting an official announcement of a delay.

Despite the current challenges, the UK government has emphasized its long-term environmental goals, which include achieving net-zero emissions by 2050. However, balancing these ambitious targets with the practical needs of the industry is proving difficult. Discussions are ongoing regarding potential solutions, such as increasing investment in charging infrastructure, offering further incentives for ZEV adoption, and adjusting the mandate to provide more time for the industry to transition smoothly.

As the government and industry work together to find a way forward, businesses and dealers are closely monitoring developments and hoping for a resolution that balances both environmental sustainability and industry realities