The electrification movement is gathering pace despite the threat of rising energy prices and supply shortages.
Fleet Logistics UK said it’s seeing record levels of requests for consultancy and advice on implementing an EV fleet policy, supported by a number of factors.
These include the impact of the coronavirus pandemic, which has brought reduced driver journeys across the board and, as a result, has reduced range anxiety from more drivers’ minds. It’s now widely accepted that electric cars can cope with average business journeys and commuting.
And Sue Branston, country head for UK and Ireland at Fleet Logistics UK, said the likelihood of much higher energy prices from April had done nothing to deter businesses’ desire to switch to electric vehicles.
While three-quarters of households are set to see their energy bills rocket by hundreds of pounds in April when the Government price cap is increased – and Branston said that while you might think this would limit the desire to switch to EVs, nothing could be further from the truth.
“We have customers virtually queuing up outside the door for help with EV adoption and implementation and policy advice,” she said.
“Germany saw significant energy price increases last year of around 18% and this has not slowed adoption levels. And we expect the same thing to happen here,” she added.
In fact, because of the tax advantages of the current Benefit-in-Kind tax regime, which currently imposes tax rates of 1% for fully electric cars, rising to 2% from April, the savings available far outweigh the possible impact of any energy price rises, Branston stated.
“Not only are there considerable tax savings for both the driver and the employer, but the running costs are lower, and we have seen recent figures that show that service, maintenance and repair (SMR) costs of battery electric vehicles are around 50% lower than those of equivalent ICE vehicles.
“With fewer moving parts in an electric drivetrain, maintenance intervals are longer and services take less time to perform, so running costs are lower – going someway to offsetting the higher front-end prices that are typically charged for electric cars,” she added.
Last year saw more electric cars registered than in the previous five years combined, and Fleet Logistics UK expects this year to build on that success, with the only constraint being the supply of suitable vehicles caused by a global shortage of the semi-conductors which are so important for modern cars.
“We have seen a significant growth in the consultancy requirements of our clients as they evaluate different approaches, along with different OEMs, lease companies and other suppliers based on their individual fleet needs. Is a different approach needed for job need fleets compared to perk fleets, for example?” said Branston.
“Thankfully, we have an established and experienced consultancy division so that all through the pandemic and at a time of huge legislative and environmental change, we have had teams of experts in place well-versed in tackling these sorts of issues in single or multiple markets.”
Fleet Logistics also said its work has developed bespoke solutions and cost scenario tools to support clients in the rapidly approaching 2030 phase-out of combustion engines.
“Our clients take their climate commitments very seriously and we are working with some that plan to phase out all diesel and petrol vehicles by 2025. Helping clients establish the right pace and the right product for their individual business remains key,” Branston added.
