Commercial vehicle dealers back calls for ZEV mandate moratorium in van market

The National Franchised Dealers Association (NFDA) is lending its support to calls from van manufacturers for a temporary moratorium on the Zero-Emissions Vehicle (ZEV) mandate.

The ZEV mandate sets ambitious targets for manufacturers to transition to zero-emission vehicles. However, industry stakeholders are concerned over the feasibility of meeting these requirements in the van market without additional support and flexibility.

In addition to the ZEV consultation, the Government simultaneously launched another initiative to reduce regulatory burdens for businesses operating zero-emission vans. The NFDA said this dual approach reflects efforts to address industry concerns while encouraging broader adoption of zero-emission technologies.

Sue Robinson, chief executive of the NFDA, said the association welcomed the inclusion of a section for vans in the consultation but noted that future regulations and support mechanisms for the van market needed to balance environmental goals with the practicalities of industry transition.

“Year-to-date figures for 2024 reveal that electric vans account for just 5.8% of the market share, a decline of -0.1% compared to the same period in 2023, and well below the 10% target set by the mandate,” she said. “This is particularly concerning as fines for non-compliant vans are set to double from £9,000 to £18,000 in 2025, alongside the mandate percentage increasing to 16%.

“Currently, diesel vans remain the preferred choice for most customers due to range, refuelling speed, payload capacity, and lower purchase costs. An often-overlooked aspect of van usage is that many vans are assigned to employees who take them home overnight to ensure they are ready for 24/7 call-out services.

“Many of these employees live in apartments or flats where home charging is not an option. Additionally, on-street charging is typically designed for cars and is often inadequate for the larger size of light commercial vehicles, which can be twice as long as a car.

She said the Government must prioritise incentivising van customers during the transition to electric, recognising that their needs differ from those of car buyers.

“If the Government continues to enforce unrealistic ZEV targets and penalties for vans, manufacturers will reduce the supply of diesel light commercials, which will harm the UK economy. This could also lead to the unintended consequence of older, polluting vans being repeatedly repaired to stay on the roads, further damaging air quality.

“Van dealers have invested heavily and are committed to the transition but emphasise that this needs to be gradual and orderly.”