Why Electric Vehicles are a Smart Business Investment
2021 is going to be a year of change for business, for multiple reasons, and one of these changes is the growth in use of electric vehicles (EVs).
Figures suggest that 2021 is set to become a tipping point when it comes to EVs and green transport. Despite the impact of the Covid-19 pandemic on new UK car sales in general, EVs have bucked this trend.
In 2020, sales of new electric vehicles in the UK increased by an impressive 186%.
Does this mean that for businesses looking to update their fleets, EVs are the smart choice?
Why Change Your Fleet to EVs?
By 2026, the expectation is that EVs will account for one fifth of vehicle sales. So far, most interest in EVs has been on consumers and the growth in purchasing cars for private use.
But for business fleets, EVs will also be on the rise. In 2019, fleet vehicles accounted for more than half of all UK car sales, according to the Society of Motor Manufacturers and Traders (SMMT). This will drive the market for fleet electrification.
The roadmap to fleet electrification begins with the tipping point, which, as we have already highlighted, is imminent. Plus, there is the announcement that the government intends to bring forward the ban on new petrol and diesel cars to 2030.
If you’re looking to prepare yourself for the future when it comes to your business fleet, we are entering an optimum period for investing in EVs.
But with the momentum of EV adoption gathering pace, what specific benefits can you expect from making this change?
Save on Fuel and Maintenance Costs
EVs can offer cost savings in both fuel and maintenance. As the technology has matured, so it’s become much more practical. The average range of a charge for an EV now exceeds 150 miles.
You can realistically consider an electric vehicle as a viable alternative to a petrol or diesel car.
The charging network that’s essential to supporting EVs continues to grow in the UK. According to government figures, it grew by nearly a fifth during the first nine months of 2020.
DfT figures state that between January and October 2020, the number of public charging points increased by 18%.
Charging a car with electricity is a lot cheaper than filling it up with petrol or diesel. The Energy Savings Trust estimates that you can get the equivalent mileage on £13 to £16 of petrol or diesel with only £4 to £6 using electricity.
In terms of maintenance, EVs have fewer moving parts than traditional vehicles, which means there’s less to go wrong. With a fleet of EVs, you can bring your ongoing maintenance and repair costs down.
More cities and areas across the UK are planning to introduce clean air zones, including Greater Manchester. If these areas decide to pursue a charging model, then EVs will most likely be exempt from charges, as they are in London’s Ultra Low Emission Zone.
If you’re looking to get your business future-ready, then the vehicle fleet you choose should be electric.
Corporate Social Responsibility and EVs
Corporate social responsibility (CSR) is fast becoming a critical facet for businesses wishing to differentiate themselves to compete effectively.
This impacts on customers’ perceptions of a company’s values, and on the company’s ability to attract talented employees.
The environmental consequences of pollution from diesel and petrol fuelled engines are well-documented.
There are implications for employee wellbeing, but also the general health of society, with petrol and diesel pollution having links to asthma, cancer and dementia.
From an image and positive branding viewpoint, changing your fleet to EVs is a clear demonstration of a commitment to CSR.
How Should Your Fleet Go Electric?
The motivations to electrify a fleet come from a variety of sources, but all the indicators point towards this being a smart move.
The question then is when and how?
It makes sense to do this before the government’s ban comes in on new petrol diesel cars in 2030. EVs are moving beyond the stage of early adoption, as both vehicle and infrastructure technology start being able to support EVs as a serious mass alternative to fuel-driven cars.
There are government grants available for installing charging sockets in a workplace, but in addition, at Excel-A-Rate we can help you explore a range of financing solutions for investing in your electric vehicle fleet.
There’s no better time to future-proof your vehicle fleet.