2035 diesel/petrol van phase-out date remains in place
The British government has confirmed that it will maintain the previous administration’s decision to postpone the phase-out date for diesel and petrol vans to 2035, despite honouring its manifesto commitment to reverse the relaxation for passenger cars.
While sales of new petrol and diesel cars must now be phased out by 2030, vans with an internal combustion engine, including both diesel and petrol models, will be allowed to be sold until 2035.
In addition, the terms of the zero emission vehicle (ZEV) mandate will be updated to make it easier for vehicle operators to upgrade to electric vehicles, says the Department for Transport.
The mandate sets annual targets for manufacturers around the sale of zero-emission vans and cars, which increase each year. Manufacturers are able to earn credits if they exceed targets, or borrow credits from future years to offset deficits; and these rules will see increased flexibility in some areas.
The transport secretary Heidi Alexander said: “Our ambitious package of strengthening reforms will protect and create jobs – making the UK a global automotive leader in the switch to EVs.”
Mike Hawes, chief executive of the Society for Motor Manufacturers & Traders (SMMT), commented: “The government has rightly listened to industry, responded quickly to global dynamics and recognised the intense pressure manufacturers are under.
“Industry remains committed to decarbonising road transport but the ZEV mandate targets are incredibly challenging, especially with a paucity of consumer demand and geopolitical upheaval. Growing EV demand to the levels needed still requires equally bold fiscal incentives, however, to give motorists full confidence to switch.
“We await full details of the regulatory amendments but, given the potentially severe headwinds facing manufacturers following the introduction of US tariffs, greater action will almost certainly be needed to safeguard our industry’s competitiveness. UK-US negotiations must continue at pace, while the long-awaited industrial and trade strategies should prioritise automotive and be delivered at speed.
“In this vastly changed world, a package of measures is needed to support manufacturing, especially the supply chain, so our industry can deliver the economic growth, jobs and investment the country needs.”
The Vehicle Remarketing Association (VRA) cautiously welcomed changes to the ZEV mandate, but said more help would be needed.
Philip Nothard, chair at the VRA, said: “The good news is that the government has listened and made material changes. There has been a general recognition that existing targets were proving unrealistic and a relaxation was needed that accounted for real world market conditions.
“Moves such as allowing hybrid cars and diesel vans to stay on sale until 2035 will provide a degree of breathing space for manufacturers, as will the greater flexibility around production caps and car and van credits. Notably, it does feel as though the particular difficulties the new electric van market is facing have been recognised. Overall, we’re giving these moves a cautious welcome.”
He added: “It’s also encouraging that the DfT says in its announcement that the situation will be kept under review. It’s quite likely that further changes will be needed in the future, especially in light of the uncertainty that now hangs over UK motor manufacturing because of the Trump tariffs. It’s a fluid situation.
“However, the big issue for the VRA – and for the wider car and van sectors – remains the used market. We were signatories to a letter sent to government by the British Vehicle Rental and Leasing Association last week making a strong case for more support during the transition to electrification, and we’d like to see signs that the government recognises the growing problems we are facing.
“While used electric cars are currently selling quickly, residual values are extremely poor and there are much greater volumes of electric vehicles (EVs) heading to the used market very soon. More needs to be done to make buying a used EV practical and cost-effective for more people, which means everything from assistance with purchasing to creating a more accessible and affordable charging infrastructure.”
Michelle Gardner, Logistics UK’s deputy policy director, said the organisation’s members would “welcome the clarity” on petrol and diesel vans, and said that the sector was “fully committed to decarbonisation”.
But she added: “Commercial vehicles are acquired and used very differently to cars, and zero tailpipe emission vehicles must make commercial and operational sense before businesses can incorporate them into fleets.
“There are still significant barriers preventing more widespread adoption, and our members cite increased vehicle costs, lack of usable public charging, the time and cost of installing infrastructure at depots and higher regulatory burdens.”
