Government policy to incentivise company car drivers into electric cars as the fastest way to drive a wider EV transition appears to be unravelling, due to the failure to provide matching incentives to encourage demand in the used market.
That’s the implication of a new report from Auto Data Solutions, which predicts that “plummeting EV values and waning confidence in forecast residuals” will force leasing companies to extend contracts and look at re-leasing vehicles, as they can’t afford the losses if they sell them.
According to ADS, this could negatively impact the sales of new EVs in the business and fleet sector, making it even harder for car manufacturers to meet the Government’s ZEV Mandate sales targets, which are already proving challenging.
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