The BVRLA and the Finance and Leasing Association (FLA) have called for a green-focused scrappage scheme that tackles air quality, drives EV uptake and encourages sustainable travel behaviour.
In a letter sent to HM Treasury, the Department for Transport and BEIS, the two trade associations outlined 10 principles that should be considered when designing a scrappage scheme:
- Act quickly
- Be bold
- Prioritise new and used EVs
- Don’t forget about air quality
- Support fleet and private buyers
- Make a difference where it matters
- Drive transport behaviour change
- Be purchase-channel agnostic
- Work with all financing models
- Think long-term
The letter stresses the importance of the automotive sector in the wider UK economy, stating that “the right demand stimulus package will boost any [wider] recovery and support delivery of the UK’s transport decarbonisation ambitions”.
Gerry Keaney, chief executive of the BVRLA, said: “BVRLA members make a massive economic contribution to the UK automotive sector through the millions of vehicles they purchase and their activity in dealerships, garages and the used vehicle market. This enormous purchasing power can and must be harnessed to deliver a swift rebound in the economy and a faster trajectory towards transport decarbonisation.
“To be truly effective, any EV stimulus scheme must work for both the new and used market. It should make the UK a more attractive market for OEMs to sell their EVs and help those who cannot afford to buy a new electric car to purchase or lease a used one. Any scheme that focuses solely on supporting new vehicle sales could damage the residual values of ex-fleet cars and thus hinder the sector’s ability to invest in new electric vehicles.”
Adrian Dally, head of motor finance at the FLA, added: “Getting Britain moving again will require many businesses and consumers driving newer and cleaner vehicles at prices they can afford. This stimulus will come at the right time to support jobs and households across the whole of the UK.”
The letter follows the news that the Society of Motor Manufacturers and Traders (SMMT) is in talks with the government over a potential £1.5bn scrappage scheme. Despite the calls for a green-focused deal, SMMT chief executive Mike Hawes said the scheme “must support the entire market, not just disproportionately favouring specific segments or technologies, recognising the diverse nature of UK automotive manufacturing”.