Ashley Tate, MD, Allstar Chargepass UK looks at what’s going to happen in the electric vehicle sector in 2024, and how it could affect businesses.
2024 is shaping up to be a landmark year in the growing EV sector, with more models on sale than ever before and the numbers of charge points expanding rapidly. So what should businesses expect of the year?
The Zero Emissions Mandate
Perhaps one of the biggest likely influences on EV sales in 2024 also has an unknowable quality about it, and how it might affect the market. The Zero Emission Mandate comes into force in 2024, requiring that 22 per cent of all new cars and 10 per cent of all new vans sold are zero-emission. Failure to hit these targets will result in fines for manufacturers.
As ever with these types of targets, there is a certain amount of trading and offsetting that can happen if manufacturers don’t hit their numbers, but the baseline figures suggest there is a lot of work to do in the next 12 months.
For context, at the end of last year, battery electric cars have taken 16.5 per cent share, which is more in terms of volume in a growing market (at around 315,000 compared to 267,000 the year before), but still the same overall share as 2022 (16.6%), while electric vans have a five per cent share of the sector, which is roughly similar to the year before too.
So by any measure, something dramatic is going to have to happen in 2024 to see manufacturers hit their targets.
With fleets the biggest buyers of EVs, and also the fastest way for manufacturers to add volume through bulk deals, 2024 may see even more concentration on the business sector as the spearhead of the electric revolution.
The Politics of Electric
Probably this year, possibly later rather than earlier (and it could even spill into the first weeks of 2025), there will be a General Election and if the result follows the polling we may have a Labour government.
If that’s the case, then there could be a substantial shift in EV policy if Labour’s announcements this year are followed through. Firstly, shadow environment secretary Steve Reed said that a Labour Government would reinstate the 2030 phase out date for petrol and diesel vehicles the current Government pushed back to 2035 recently.
Labour also revealed plans to fast-track new vehicle battery factories, commit additional support for colleges to specialise in technical electric vehicles skills, provide funding for automotive research and development and tackle high energy prices, which it said can put off drivers from switching to EVs. It has also claimed it will ‘make the UK a clean energy superpower delivering a cheaper, zero-carbon electricity system by 2030’.
The result of these policies, Labour said would mean two million more electric cars on the road and 80,000 skilled jobs created.
These are all very positive developments and if enacted would boost the transition to electric. But, as the old saying goes, ‘a week is a long time in politics’. So a year timescale means that there is much we do not yet know. As ever, planning for all eventualities is the best approach.
Get grants now
If you’re planning on buying electric vans or installing workplace charging, it might be worth starting work on grant applications sooner rather than later. 2024, currently, sees a couple of grant schemes enter their final year.
Up first and more pressing is the end of the Workplace Charging Scheme, which is slated to end on 31 March 2024. It’s currently worth up to £14,000 per business for the installation of 40 sockets.
Also, the Plug-in Grant for vans enters its final 12 months, with a planned finish at the end of the 2024/25 financial year.
However, some of these schemes have been given extensions in the past. But don’t count on it: best to get applications in while they are still live.
Energy costs
In the past year electricity prices have fallen by around 15%, which has meant it has become even more cost-efficient to run EVs, especially if drivers plug them in at home.
However, Ofgem has increased the price cap on domestic customer bills by five per cent from 1 January 2024, and there is a feeling energy costs might rise more: analysts at Cornwall Insight have predicted wholesale power prices up by about a third.
The good thing now is that drivers of EVs are able to move domestic electricity providers and tariffs far more easily than they were a couple of years ago, and there are some really excellent deals out there that take advantage of off-peak charging. So shop around.
It never gets less interesting…
One thing is for certain: 2024 will be just as fascinating in the EV sector as 2023. For businesses looking to move to electric, there are so many opportunities to transform their operation.
And we’re at the forefront of ensuring all our customers are aware of them, taking advantage of ways to run vehicles more cheaply, more cleanly and smarter.
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