The Chief Executive of the Society of Motor Manufacturers & Traders (SMMT) has said that, given the UK’s ambitious HGV decarbonisation goals, government backing now is essential.
In his latest CEO update on Friday, Mike Hawes said:
Britain’s bus sector is modernising faster and greener in 2024, with new zero emission registrations having already surpassed 2023’s annual total, according to latest SMMT data. The UK’s new bus, coach and minibus market rose by a third in quarter three, with demand for the very greenest buses up by almost half (48.0%) – meaning 1,230 have joined our roads this year with a quarter still to go. Growth is taking place in every vehicle segment, as operators gain confidence to invest thanks to a gradual rise in passenger levels – a lifeline for the sector after weak ridership during the pandemic.
Government support has been and remains crucial, with the Bus Fare Cap Grant encouraging more passengers to get the bus again. The incredibly challenging economic environment facing operators in recent years has necessitated zero emission vehicle grant funding which has helped stimulate demand amongst some operators and, crucially, given passengers a more enjoyable ridership experience. However, as SMMT’s latest position paper on bus decarbonisation set out, previous grant bidding requirements have been too onerous and short notice to the benefit of larger, urban operators with more resources than smaller and rural ones. Long-term plans are needed to ensure fleet operators of every size and location are able to get support.
This week SMMT also published its Q3 data for the new HGV market which dipped by -6.0% between July and September. Given the decline is compared with a bumper 2023, when uptake exceeded pre-pandemic levels as pent-up demand was fulfilled, one quarter of decline is not a serious cause for concern. It also remains positive that the UK has the second biggest zero emission truck market in Europe by volume. The numbers remain small, however, with the greenest trucks representing just 0.5% of the overall market in 2024, the same as this time last year.
UK ambitions for HGV decarbonisation are significant, with a proposed end of sale date for all new, non-zero emission trucks weighing up to 26 tonnes, which is the majority of the market, in 2035 – the same time that is currently proposed for cars and vans. The sector will need time to transition so support is needed now, and the place to begin is with reform of the Plug-in Truck Grant so that funding is available for every zero emission model that’s on the UK market today, not just those that were available when the grant was launched. A network of truck charging infrastructure en route, at depots and in shared hubs will also take time to deliver. With the UK currently having just two HGV-dedicated chargers, change must happen soon else operators will feel discouraged from switching until late in the day.
Finally, with the 107th SMMT Annual Dinner, which is now sold out, fast approaching on 26 November, I am delighted to announce that the Rt Hon Jonathan Reynolds MP, Secretary of State for Business and Trade and President of the Board of Trade, will be delivering the opening political address. The event is always a highlight of the year and I look forward to seeing many of you there.
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