The vast majority of fleet cars and vans in the UK and Europe could go electric but government incentives are vital in enabling a widespread and cost-effective switch to EV technology.

The UK leads Europe in range-capable vehicles yet lags in their overall economic suitability – exacerbated by the ending of the Plug-in Car Grant earlier this year

A new study by telematics giant Geotab analysed the driving patterns of 46,000 connected internal combustion engine (ICE) vehicles from 17 countries. It found that 60% of analysed light-duty European fleet vehicles could be switched to fully electric vehicles today with a lower total cost of ownership and nearly a £218m overall saving.

This equates to average European savings of £7,960 per vehicle over a seven-year period, even without factoring in savings from government incentives, such as initial purchase price discounts.

But government support would bring powerful incentives to support such a shift. And the research shows that such measures vary widely from country to country – and 10 members of the EU don’t provide any cash incentives at all, while the UK scrapped its Plug-in Car Grant (PiCG) earlier this year.

It also revealed that while daily fleet needs are more likely to be met by EVs in the UK, the financial benefits don’t stack up so well.

Across all the countries studied, the survey found 86% of fleet range needs can be satisfied by an EV for 98% of the time and in the UK this rises to 89% – largely due to lower mileages.

But while the UK leads in range-capable vehicles, it lags in economic suitability. Some 34% of vehicles were ‘range-capable’ but not economically viable – and this has increased following the ending of the PiCG. Only 55% of EV matches in the UK worked for both daily mileage range and financially savings – lower than Italy (71%), Spain (70%) and Germany (69%).

David Savage, Geotab vice president, UK & Ireland, said that the research illustrates the clear potential and ROI for transitioning to electric vehicles.

But he added that it also demonstrates – particularly in the case of the UK – the importance of adequate government incentives to accelerate EV adoption at scale.

“The UK has been aggressive in its announced cessation of ICE-based vehicle sales by 2030, however its termination of the Plug-in Car Grant earlier this year has demonstrably stifled the economic viability of this transition, according to this research.”

Geotab also said the research shows the importance of using telematics data to generate in-depth insights on fleet electrification.

“Telematics data will be critical, no matter where organisations are in their EV adoption stage, because it will help them operate their entire fleet in more efficient and sustainable ways,” commented Klaus Böckers, vice president, Nordics, Central & Eastern Europe, Geotab.

Geotab’s Electric Vehicle Suitability Assessment tool (EVSA) uses organisations’ existing driving profiles to identify which existing vehicles are a good fit for electrification, suggests suitable EV replacement models and quantifies how much the organisation can save in both cost and potential carbon emission reduction.

To access the Geotab report on ‘Profitable sustainability: The potential of European fleet electrification’, click here.