Question to the Department for Transport:

To ask the Secretary of State for Transport, what assessment her Department has made of the health of the zero emission vehicle rental and fleet market.

The Government recognises the important role the fleet and rental sectors play in advancing the UK’s transition to zero emission road transport, particularly through high market share of new zero emission vehicle (ZEV) purchases and the success of ZEV adoption through salary sacrifice schemes.

To support both markets, the Government has worked closely with stakeholders to address barriers to ZEV uptake across a range of vehicle types, such as lowering upfront costs of ZEVs through grants, increasing availability of charge points, for example through the Depot Charging Scheme, maintaining beneficial tax rates, and reducing regulatory burdens on 3.5 to 4.25 tonne vans.

However, it is clear that challenges remain, including residual value risk and consumer demand in the rental sector. The Government will continue to engage closely with stakeholders to monitor the continued health of the market, ensuring the UK’s ZEV transition remains robust and competitive.