BVRLA warns fleet operators need support with electric vehicle shift.

The BVRLA has sounded the alarm on the growing gap in electric vehicle (EV) demand between businesses and private drivers, warning that immediate government intervention is essential to address this issue.

The latest Leasing Outlook report from the rental and leasing industry body highlights a concerning trend where there is a significant uptake of battery-powered (BEV) and plug-in hybrids (PHEVs) among businesses opting for contract hire. However, the adoption of EVs among private contract hire customers is lagging behind.

In the fourth quarter of 2023, a staggering 75% of new additions to the business contract hire fleet were BEVs or PHEVs. On the other hand, petrol vehicles accounted for two-thirds of new registrations in the private contract hire sector, indicating a clear disparity in EV uptake between corporate and retail customers.

Toby Poston, BVRLA director of corporate affairs, emphasised the urgent need to stimulate consumer demand for EVs, stating that current incentives like Benefit-in-Kind and salary sacrifice schemes have been instrumental in driving corporate adoption of electric vehicles. However, he cautioned that expecting fleet operators and business drivers to shoulder the entire burden of the EV transition, particularly as Zero Emission Vehicle (ZEV) mandate targets become more stringent, is unsustainable. Poston stressed the importance of redirecting attention to the retail sector to kickstart demand for EVs.

Cap HPI’s Dylan Setterfield echoed these sentiments, highlighting the government’s pivotal role in bridging the gap between business and private EV demand. Setterfield proposed various measures that could be implemented, such as harmonising VAT to reduce public charging costs and making EV ownership more affordable for individuals without access to off-street parking. Additionally, he suggested incentives like toll exemptions and discounted parking charges to incentivise private customers to switch to electric vehicles.

Despite widespread calls for such initiatives to be introduced in the recent Spring Budget, there was a notable absence of significant action to promote the adoption of BEVs.

Looking ahead, it is imperative for policymakers to explore innovative solutions to encourage greater uptake of electric vehicles among private customers and align with the ambitious targets set by the ZEV mandate. The full BVRLA Leasing Outlook report, featuring insights from industry experts at Auto Trader, Cap HPI, and Fleet Assist, offers a comprehensive analysis of the current landscape and potential strategies to accelerate the transition to electric mobility.