Research reveals that only 1-in-4 vehicle fleets reacted to the Conservative government’s postponement of the 2030 ICE ban to 2035, meaning 75% of fleets have continued to work towards the 2030 deadline.
The new Labour UK Government has reaffirmed the 2030 ban on the sale of new petrol and diesel-fuelled cars, marking a significant step towards combatting climate change and promoting sustainability. This policy aims to accelerate the transition to electric vehicles (EVs) and reduce the nation’s carbon footprint.
When the Conservatives delayed the ban in September 2023, pushing it back five years, 360 research revealed that the majority of car fleets did not plan to react, with just one-in-four indicating that they would continue to allow ICE cars right up to the 2035 deadline.
Fast forward almost one year, and 40% of fleets are predicting growth of their EV car fleet, citing greater certainty of BIK tax as the primary driver for cash takers to return to running company cars.
The certainty and clarity that the change delivers is expected to stimulate investment in UK EV infrastructure, including charging stations, and encourage innovation within the automotive sector. It also sends a clear signal to car manufacturers to prioritise the development and production of electric and hybrid models.
The reinstated ban is also likely to influence consumer behaviour, increasing demand for EVs and fostering a greener economy.
The revision, which only mentions cars, not vans, was not included in the King’s Speech, but the DfT is expected to release more details soon, especially as sales of electric vans have been dropping year-on-year.
SMMT data shows that just 1476 battery-powered electric vans were sold in June 2024, while 30,803 diesel vans were purchased. That compares to 1775 and 32,070, respectively, in June 2023.
Likewise, clarity on the status of plug-in and ‘mild’ hybrid EVs will also be required.
The UK government ZEV Mandate states that at least 22% of new cars and 10% of new vans sold by manufacturers in 2024 have to be zero emissions.
Critics have expressed concerns about the readiness of infrastructure and the potential costs to consumers, especially during a cost-of-living crisis. Nonetheless, the Labour Government emphasises that this decisive action is essential, for ensuring a sustainable future, addressing climate change, and positioning the UK as a leader in green technology.