By Tim Laver, managing director, ALD Automotive | LeasePlan UK (soon to be Ayvens)

Tim Laver, managing director, ALD Automotive | LeasePlan UK (soon to be Ayvens)

Northern European countries have emerged as the global leaders in electric vehicle maturity, according to our recent study.

Despite the UK achieving the 10th spot out of 47 countries, countries such as Norway and Finland topped the list thanks to their high EV adoption rates and superior public charging infrastructure.

While the UK has the potential to be a world leader in EV adoption, it’s falling behind compared to other Northern European countries where progressive policies, robust infrastructure and strong incentives have successfully catalysed widespread EV uptake. As a result of these strategies, EVs have become a more practical and appealing choice for fleets.

Fleets have been a key driver of EV adoption in the UK, accounting for over 55% of new electric vehicle registrations in 2022. This shift is accelerating the broader uptake of EVs by increasing demand and improving infrastructure.

So, what can the UK learn from these Northern European countries and how might this unlock further growth in EV adoption among fleets?

Lessons to be learnt from Northern Europe    

Northern European countries have set themselves apart by implementing robust strategies that have significantly accelerated EV adoption, especially within the fleet sector.

Finland, for example, offers financial subsidies for electric vans and trucks while zero-emission cars are exempt from registration tax. These subsidies help make EVs a more feasible option for fleet operators and encourage them to transition to electric options without bearing high initial costs.

Finland’s neighbouring countries are also championing EV adoption, with Norway topping the Ayvens mobility guide because of its substantial package of incentives for zero-emission vehicles. From lower taxes for low- and zero-emission cars to VAT exemptions for EVs, it’s economically beneficial for fleet managers to choose EVs over high-emission vehicles.

Investing in extensive and reliable charging infrastructure is also a key driver behind EV uptake for fleets as they benefit from improved access to charging facilities.

Norway has ensured it has an EV charging infrastructure which can meet its growing demand. It has successfully established fast charging stations on all main roads in Norway and has more than 3,000 public charging stations available across the country, reducing range anxiety for fleet drives.

As a result of comprehensive EV incentives and investments in EV services and charging infrastructure, Northern European fleets have been able to make a greater transition to electric vehicles than other countries.

The challenges holding back UK fleets from embracing electrification 

While the UK has made notable strides in EV adoption with incentives such as the Plug-in Van Grant, lower Benefit-in-Kind (BiK) tax and current exemption from Vehicle Excise Duty (VED) helping drive electrification, there are still several factors holding fleets back from making the shift.

Despite several financial incentives available, there continues to be a degree of uncertainty around certain incentives such as VED rates, which are set to rise from April 2025 and will be equalised across all cars including electric vehicles. There’s also the need for clarity on incentives, such as whether the Plug-in Van Grant will continue beyond March 2025. Without this, businesses will see switching to EVs as a less attractive option and slow down their transition to electric vehicles.

Infrastructure also continues to pose a problem for fleets with a lack of accessible and sufficient charging points. Despite significant improvements in recent years in the number of public EV chargers across the country, there’s still work to be done to improve the charging experience by enhancing reliability and convenience.

Another hurdle is the total cost of ownership (TCO), which has been on the rise due to surging energy prices. This can prevent fleets from switching to EVs. High upfront costs of electric vehicles, including the purchase price and the need for specialised charging infrastructure, can make them a costly option for fleet managers. Uncertainties around perceived battery lifespan, resale value and potential downtime for charging or maintenance can all contribute to businesses holding back on electrifying their fleets.

How the UK can overcome its fleet adoption challenges

By implementing the lessons learnt from other Northern European countries, the UK can make greater steps towards fleet electrification.

Government incentives play a significant role in supporting businesses to make the switch to EVs. Policies such as tax breaks on fleet purchases including via lease, grants for electrification, and clearer guidance are urgently needed. As shown by the success of countries such as Norway, these strategies can greatly increase EV uptake.

Investment in a more reliable and extensive public charging network, such as those in Norway and Denmark, would also reduce concerns about charging accessibility and downtime, all of which are key considerations for fleet managers. These countries have demonstrated that accessible charging infrastructure is essential for fleets to operate efficiently and reduce range anxiety.

Another lesson is the strategic use of data analytics in fleet management, which Northern European fleets have used to monitor performance and identify cost-saving opportunities. By leveraging advanced data tools, UK fleets could optimise their operations, manage costs more effectively, and better integrate EVs into their businesses.

While the transition to electric fleets may present challenges, Northern Europe’s success provides a roadmap that the UK can follow to boost its EV fleet uptake. By advocating for stronger government incentives, investing in robust charging infrastructure, and using data-driven strategies, the UK can overcome the barriers currently facing its fleet sector and accelerate EV uptake.