Electric vans to be pushed by Government with tax incentives

The government has vowed to incentivise the take up of electric vans following the publishing of its 'Road to Zero' document.

Road to Zero

Road to Zero is a document published by the Government which has been formulated to prepare the UK for the well-publicised ban on diesel and petrol vans. In publishing this document, the government has said that they are going to consult on alteration of Vehicle Excise Duty (VED), encouraging drivers of vans to go as clean as possible when purchasing a new van.

Proposed VED changes

As it stands, current VED charges punish cleaner new Euro 6 vans as opposed to the biggest culprits in terms of pollution, older vans. However VED charges for electric vans currently stand at £0! In another attempt to incentivise the uptake of electric vans, the Government previously announced that it would continue to offer the plug-in van grant until at least 2020, with current plug-in grant rates remaining until at least October 2018.

The ambition

The Government has highly ambitious plans for electric vans in the near future, revealing their plans to make 40% of the van market Ultra Low Emission Vehicles (ULEVs) by 2030. These highly ambitious plans have been scrutinised by the Society of Motor Manufacturers and Traders (SMMT) who have labelled them 'hugely challenging'

SMMT Commercial Vehicle Development Manager, Nigel Base commented on the challenges that the highly ambitious plans will face:

"We are concerned about targets for ULEV penetration that go far beyond the high levels of expectation proposed by the European Commission for vans. Achieving 40% market share would require a nearly 144-fold increase in uptake from the current position of just 0.3%. Vans are business tools and drivers are typically far more sensitive to purchase price and return on investment than car buyers, while current electric van technology, which involves large batteries, can mean reduced carrying capacity. In addition, there is currently no bespoke charging network for these vehicles, which require larger parking bays, longer charging times and charge point locations that will fit seamlessly into their day-to-day business operations."

Electric vans on finance

Looking to do your bit for the environment with an electric van? Get your electric vans direct from Vansdirect, we have a number of options available and cheap van finance options including van leasing, contract hire and hire purchase. Interested? Call us on 0800 169 69 95 or enquire online and we'll get back to you asap, we also offer cars!