ZEV mandate explained

What does the ZEV mandate mean for your fleet?

Hello fleet community,

Steve Clarke here, Marketing Manager at Fleetmaxx Solutions. As the automotive landscape rapidly evolves, the Zero Emissions Vehicle (ZEV) mandate stands as a pivotal regulation steering the future towards sustainability. This article dives into what the ZEV mandate entails, its implications, and how you can prepare your fleet for the road ahead.

What is the Zero Emissions Vehicle (ZEV) mandate?

The UK government is committed to accelerating the decarbonization of road transport. The ZEV mandate is a critical component of this strategy, requiring all new cars and vans to be zero-emission (ZE) at the tailpipe by 2035. Starting January 2024, manufacturers must ensure a specific percentage of their annual sales are ZEVs, which include battery electric and potentially hydrogen vehicles.

The ZEV mandate aims to significantly cut greenhouse gas emissions, improve air quality, and drive the shift towards sustainable transportation. Manufacturers failing to meet these thresholds, without leveraging credit borrowing or trading, will face substantial compliance fines:

• Cars: ￡15,000 per non-ZEV car exceeding the specified percentage.
• Vans: ￡9,000 per non-ZEV van exceeding the specified percentage in 2024, increasing to ￡18,000 from 2025 onwards.

These penalties are designed to incentivize manufacturers to meet emission compliance through proactive measures rather than facing fines.

What are the ZEV mandate deadlines?

The ZEV mandate outlines specific percentages of new vehicle sales that must be zero-emissions over the next five years:

Percentage of new zero-emission cars:

• 2024: 22%
• 2025: 28%
• 2026: 33%
• 2027: 38%
• 2028: 52%
• 2029: 66%

Percentage of new zero-emission vans:

• 2024: 10%
• 2025: 16%
• 2026: 24%
• 2027: 34%
• 2028: 46%
• 2029: 58%

What does the?ZEV mandate mean for fleets?

You might wonder how this affects your fleet, given that the regulations focus primarily on manufacturers. Although the UK government has extended the deadline for the sale of new fossil-fuel cars and vans from 2030 to 2035, the ZEV mandate remains in effect. This will significantly impact the production and availability of new fossil-fuel vehicles. While this may seem daunting, the regulation is still in its early stages, and there’s ample time to adapt. There’s no need to panic, but it’s crucial to stay informed and prepared.

What can I do to be prepared ?

By researching and understanding the ZEV mandate, you’re already taking the right steps. Let’s delve into the potential implications for fleet managers and how you can proactively navigate this transition. While the future remains uncertain, staying ahead of potential challenges is key to ensuring the smooth operation of your fleet.

What are the implications for fleet management of the?ZEV mandate?

Although the ZEV mandate’s full impact is not entirely predictable, considering all potential outcomes is essential for effective planning. Here are some critical areas to focus on:

1. Lease Cycles and Vehicle Availability: Average lease cycles for cars are 3-4 years, and 4-5 years for vans. With the ZEV mandate in place, replacing your existing Internal Combustion Engine (ICE) vehicles may become challenging. Limited availability of new ZEV and ICE models could mean facing the choice between a ZEV that doesn’t fit your use case or a scarcity of ICE vehicles.
2. Future Price Reductions: As manufacturers aim to meet the ZEV mandate’s targets, we may see a reduction in ZEV prices. The need to sell higher quantities of ZEVs could drive down costs, making electric vehicles more attractive and financially viable for fleet operators. This could significantly impact the Total Cost of Ownership (TCO), making EVs a more favorable option.
3. More Capable EVs: With the mandate pushing for 46% of new van sales to be zero-emission by 2028, we can anticipate an influx of more capable electric vans. These vehicles may offer cheaper running and maintenance costs, increased power, and enhanced functionality, revolutionizing the van sector.

What support is available for the transition to an electric fleet?

Transitioning to an electric fleet can be complex, but numerous resources are available to assist you. At Fleetmaxx Solutions, we offer comprehensive support to help you make the switch to electric vehicles seamlessly:

• MaxxEV Solutions: Our MaxxEV EV fleet solutions guide you in finding the right EV vehicles and provide solutions for charging at home and on the road. We aim to simplify the transition and help you maximize your EV fleet’s potential.
• EV Chargepoints at home and at your business; We have a range of electric vehicle chargepoints suitable for all homea sn business, backed up by a quailty installation and after sales service.
• Business Homecharge: Charging EVs at drivers’ homes is often the most cost-effective and convenient method for fleets. We make it straightforward for your drivers to charge at home.
• EV Charge Cards: We offer three great card choices for accessing dedicated business EV charging networks, ensuring hassle-free charging without the need for apps or downloads.
• EV Vehicle Leasing: We help you find the right EV van or car that suits your business needs and budget, offering vehicles from top brands at competitive prices.
• Tracking & Telematics: Our GPS tracking systems monitor vehicle and driver performance, ensuring safety and efficiency on the road.
• Route Optimization: Route planning is vital for EV operators, our tools ensure drivers complete their journeys productively with the available battery and provide options for recharging en route.
• EV Vehicle Insurance: We offer tailored insurance policies to meet your business needs, whether it’s a fleet of 2 or 200 vehicles.

By planning for the ZEV mandate and exploring the available support, you can be well-prepared to take advantage of the opportunities this legislation presents.

Stay proactive and keep an eye on the evolving landscape. At Fleetmaxx Solutions, we’re here to support you every step of the way.

Steve Clarke Marketing Manager Fleetmaxx Solutions

To learn more or to get started, reach out to us at 01282 340077 or complete our contact me.