The transition to electric vehicles to meet the 2030 EV target has been one of the biggest talking points in the UK motor trade for several years. But could the Government now be preparing to ease some of the pressure?
Car Dealer Magazine is reporting that the Government could shortly consult on reducing the Zero Emission Vehicle (ZEV) Mandate target for 2030.
Under the current trajectory, manufacturers are expected to reach an 80% zero-emission share of new car sales by 2030. According to the report, this could potentially be reduced to somewhere between 50% and 70%.
If that happens, what would it actually mean for franchised car dealers?
Does a change to 2030 EV targets give dealers more breathing space?
Perhaps the biggest question is whether the proposed change would bring government policy closer to what dealers are actually seeing in their showrooms.
There is clearly demand for electric vehicles, and EVs are going to play an increasingly important role in the UK car market.
However, the speed of adoption isn’t necessarily consistent across every customer, manufacturer or part of the country.
Dealers are at the sharp end of this.
They are the ones having conversations with customers about range, charging, depreciation, insurance, finance payments and whether an EV actually works for their lifestyle.
If customers aren’t moving to electric vehicles at the speed anticipated by legislation, manufacturers and their dealer networks can find themselves caught in the middle.
Reducing the 2030 target could potentially give manufacturers greater flexibility to respond to genuine consumer demand rather than concentrating quite so heavily on achieving a mandated percentage.
What happens to petrol and hybrid cars?
This could also have implications for the types of cars available in showrooms over the next few years.
Could manufacturers retain petrol and hybrid models for longer?
Will plug-in hybrids become an even more important stepping stone towards full electrification?
And could dealers have greater flexibility to stock the vehicles their customers actually want to buy?
These are important questions because the transition isn’t simply about changing the powertrain of a vehicle.
It affects manufacturer targets, dealer profitability, used-car values, finance, aftersales departments, workshop investment and staff training.
What does it mean for people working in dealerships?
There is another side to the EV transition that perhaps doesn’t receive as much attention: people.
The changing vehicle parc is already altering the skills dealerships and garages need.
Technicians increasingly require knowledge of high-voltage systems and EV diagnostics, while sales executives need to understand charging, range, battery technology, taxation and the different ways customers use electric vehicles.
Aftersales departments are also having to consider how an increasing EV parc could affect traditional servicing and maintenance revenues.
From a recruitment perspective, we’re already seeing how valuable experienced technicians and diagnostic technicians have become.
Whatever percentage eventually appears in the ZEV Mandate, the direction of travel seems clear: electrification will continue.
The more interesting question for the motor trade may be how quickly we get there.
If the targets are reduced, will it provide manufacturers and dealers with some much-needed flexibility?
Or could changing the targets again simply create more uncertainty for businesses trying to plan several years ahead?
For those of us working with dealerships every day, it will be interesting to see how the industry responds.
What do you think? Would reducing the 2030 ZEV target be good news for UK car dealers, or does the industry need certainty more than another change of direction?
Read the original report from Car Dealer Magazine:
https://cardealermagazine.co.uk/consultation-on-slashing-2030-zev-mandate-target-for-electric-cars-as-soon-as-next-week/326295
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