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More than a third of SMEs planning to go electric

By / 1 month ago / UK News / No Comments

Interest in electric vehicles is fast-rising among SMEs as well as larger fleets, driven largely by the new BiK tax incentives.

More than a third (37%) of companies with fewer than 100 employees either already operate electric vehicles or plan to adopt them within the next three years

Research by Arval found more than a third (37%) of companies with fewer than 100 employees either already operate electric vehicles or plan to adopt them within the next three years, compared to less than a quarter (23%) in 2019.

For plug-in hybrids, almost half of SMEs (46%) either already have them or plan to put them on fleet compared to just 28% in 2019 while, for hybrids, they were 45% this year against 37% in 2019.

Shaun Sadlier, head of Arval Mobility Observatory in the UK, said the company had been saying for some time that 2020 would very much be the year during which electric power takes off for fleets of all sizes and these findings show that SME businesses are part of that trend.

Sadlier added that the noticeable acceleration in interest was largely down to the  tax incentives now available for company car drivers, especially the 0% Benefit-in-Kind rate for the 2020-21 tax year for battery electric vehicles.

“Also we are in the process of seeing a dramatic expansion in the choice of EVs available, especially among battery electric vehicles. Over the course of this year, the number of models available will increase but there will also be a better representation across more segments and price points,” he continued.

“Finally, while there is still work to be done, the charging infrastructure across the UK is growing all the time, providing reassurance to drivers and their employers that these vehicles can be used practically on a day-to-day basis.”

Sadlier said it was interesting to note that many businesses with which Arval worked in the UK were now planning to move straight from petrol and diesel cars to battery electric alternatives.

“A couple of years ago, the received wisdom in the market was that both types of hybrid would probably serve as a transitional technology. Instead, the perceived hurdles to battery electric adoption have reduced to a point where they can meet the needs of a wide variety of drivers, although companies also recognise that hybrids and plug-in hybrids will have an increasing role to play in tomorrow’s fleets.

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Natalie Middleton

Natalie has worked as a fleet journalist for 16 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day. As Business Editor, Natalie ensures the group websites and newsletters are updated with the latest news.