Virta has previously called for the Labour government’s pledge to bring back the 2030 ban on the sale of new petrol and diesel cars to be backed up with substantial investment to fully support the transition to electric vehicles. Fleet vehicles continue to account for the majority of new electric vehicle sales.
“The move to electric vehicles is inevitable, given the government’s commitment to ending the sale of new petrol and diesel vehicles, and businesses' own economic and environmental considerations” said Mr Tolley. “The only question for fleet managers is when they make the switch. That’s why targeting incentives at this group could help drive faster adoption of EVs which, in turn, will lead to improvements in charging infrastructure. A growing number of company cars on the roads are EVs because of incentives like lower tax rates, but there is no equivalent opportunity for commercial vehicles, so the change won’t be driver led - fleet owners must be incentivised to make the switch.”
Virta believes that some of the key incentives should be:
Scrapping the 2025 introduction of vehicle excise duty for commercial zero-emission vehicles
Widening the criteria of the Plug-in Van Grant, launched in 2012 to help bridge the price gap between the cost of eLCVs and diesel vans, ensuring all current zero-emission models are eligible
Fairer pricing for electricity used to power commercial EVs, including reducing VAT to 5 percent, introducing price caps and the introduction of carbon credits, which already exist across Europe.
Extending EV infrastructure grants to support larger scale installations at depots supporting commercial fleets
“Offering financial incentives to fleet operators can make the switch more financially appealing” added Mr Tolley. “It is no secret that many businesses are operating under tight budgets at the moment, so this kind of targeted help could be crucial. Businesses will then reap the benefit. Although upfront costs for EVs are usually higher, the total cost of ownership is significantly lower. The benefits of EVs include reduced fuel costs and reduced maintenance costs, as EVs have fewer moving parts which means they typically spend less time needing running repairs. Any support coming from government should extend beyond large hub builds and motorway service area improvements It must also include fleet depots and charging locations with access during non-operational hours.”
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