‘Fleets are hitting accelerate on transition plans, but tariff cliff edge looms’
Jon Lawes, Managing Director at MHC Mobility, a leading pan-European leasing business providing fleet solutions across all asset types and industry sectors, comments on the European mobility sector following today's (19 July) ACEA vehicle registration figures, which saw a 17.8% increase in passenger car registrations from the previous year, with battery-electric vehicles taking a 15.1% market share and overtaking diesel share for the first time.
“European car registrations have had a solid start to the year. This is good news for fleet operators, as the sector continues to bounce back from pre-pandemic highs.
“Corporates are increasingly undergoing a green fleet transformation with EVs and hybrid vehicles making up more than half of our order book this year. We expect uptake to accelerate further in 2024 with businesses ramping up their transition plans.
“However, while the appetite for transitioning to a sustainable fleet is strong in territories leading the charging infrastructure rollout across Europe, political headwinds threaten to undermine momentum.
“New post-Brexit tariffs, which kick in next year for EVs failing to source enough parts locally, threaten to increase the cost of EVs in both the UK and mainland Europe.
“This 10 per cent levy could serve a hammer blow to businesses playing catch-up on their long-term EV strategy. Policymakers must find a solution with the 2024 cliff edge drawing ever closer.”