ICE ban rethink in EU would place ‘huge pressure’ on UK government, says FleetCheck

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Widely trailed plans that could see the European Union relax its 2035 ban on internal combustion engined (ICE) vehicles would place “huge pressure” on the UK government to take similar steps, according to FleetCheck.

This year’s study reveals the complexity of TCO competitiveness for BEVs as a lease option across segments and countries

Peter Golding, CEO of the fleet software specialist, said several news sources were reporting the EU would announce a package of measures before Christmas designed to reduce pressure on European manufacturers.

Golding said such measures would help car and van makers facing a “perfect storm” of required investments in electrification while fending off competition from Chinese new entrants amid a “tepid” overall market.

But he warned that any rethink on the 2035 ICE ban would be a major development that would place enormous pressure on the UK government to “fall into line”.

“The EU is the mass market on our doorstep and it is difficult to resist policy alignment in key areas, especially when it comes to a crucial sector of the economy such as motor manufacturing. It is unlikely Keir Starmer will want our carmakers placed at a disadvantage.”

Golding said the underperformance of new electric cars – and especially vans – when it came to meeting ZEV mandate targets were a key consideration.

“Even following recent revisions and the recent introduction of new car grants, the 2025 car targets are unlikely to be met and the situation for vans is much worse. We are failing to hit the staging posts put in place to electrify at the rate the Government would like to see.

“Our view is the issue is no longer really one of price – new and used EVs are now broadly comparable to their ICE equivalents – but a combination of structural and policy issues.

“Biggest among these are the absence of viable charging options for anyone living in a home without its own parking space which, by some estimates, is half of all motorists. Pavement channel installation needs to happen at a pace. Also, the new electric Vehicle Excise Duty (eVED) announcement has already had an apparent dampening effect on demand.”

He underlined the issue was not one of resisting electrification but being more realistic about the projected timeline.

“As a business, like most in the fleet industry, we support the adoption of zero emissions cars and vans, but the UK 2030 target proved unrealistic and the 2035 hybrid revision is already looking as though it too may be unattainable.

“Should the EU make its changes, UK government should work across the motor sector to identify a future roadmap that is more realistic.”

Natalie Middleton

Natalie has worked as a fleet journalist for nearly 20 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day. Natalie edits all the Fleet World websites and newsletters, and loves to hear about any latest industry news - or gossip.