PVS Talks... WLTP - Type Approval for LCVs

Introduction

Following the headache of WLTP (Worldwide Harmonized Light-Duty Vehicles Test Procedure) type approval and RDE (Real Driving Emissions) testing for cars, it is now time to look forward to the next chapter along the road to greener and more sustainable fleets; WLTP for LCVs (Light Commercial Vehicles). This document aims to quell the flames surrounding these changes and provide fleet owners and managers an overview of what to expect moving forward.

Changing to WLTP

WLTP is the new type approval regime that bridges the gap between published figures and those achieved by fleet owners and operators in the real world. It is designed to give fleet owners and managers the information required to make informed decisions around CO2 emissions and fuel consumption. The timeline for the introduction of WLTP to the LCV market is laid out as follows,

  • Since September 2018, all new Light Commercial vehicle model introductions are be subject to WLTP type approval and Real Driving Emissions (RDE) testing

  • From September 2019, all new sales of Light Commercial Vehicles will have received type approval under WLTP, and all new registrations will be subject to RDE testing

This means that from September 2019 any new LCV must be WLTP type approved.

Fool Me Once

They say that Leopards don’t change their spots, however, the manufacturers appear to have been reincarnated. They appear to have seized the moment and are proactively seeking to avoid repeating, what could be considered by some, an uninspired and lack lustre performance for car WLTP type approval. We have seen that,

  • VAG have developed their own testing facility to alleviate their growing issues and production bottlenecks

  • Peugeot, Citroen and Vauxhall all have new small vans and are working through their mid and large LCV solutions

Without being too optimistic, come September 2019, fleet owners and managers will be able to choose from at least some new and approved LCV’s, preventing a repeat of the previous car problems.

Going Green with WLTP

As WLTP is being phased in, HMRC has simultaneously been pushing on with the green agenda, remodelling company car tax bands and VED bands thereby persuading businesses to opt for vehicles at the lower end of the CO2 emissions spectrum. Following HMRC’s October 2018 paper, Vehicle Excise Duty for Vans: summary of responses, LCV fleets can expect similar radical change to how VED is determined, with high CO2 vehicles being penalised and low CO2 vehicles being rewarded. The following table indicates how a 2 category (light and heavy van) approach may be implemented,

table.png

The exact weight categories and CO2 bandings will be set out by the government prior to April 2021, nevertheless, it is clear to see that when these changes are implemented users of Electric and Hybrid vans will fare better.

Conclusion

Come September you can expect a selection of LCVs to be available for sale. Therefore, fleet owners and managers should be reviewing their renewal schedules now. It is time to take stock and assess what can and cannot be replaced post the September 2019 cut-off.

Thank you for reading, if you need help with your LCV renewals or wish to discuss how to get the best for your fleet, please contact us today on 01278 550270!

DANIEL TUZ
PVS LTD – FINANCE ANALYST