Almost a third of fleets (29%) are falling behind in the EV transition and aren’t on track to make the switch, despite the 2030 ICE ban looming large.

Late EV adoption could leave fleets struggling with vehicle policies, driver adoption and workplace/public charging

New research from Volkswagen Financial Services (VWFS) Fleet finds that while the transition for many fleets is underway, an alarming number look like they’ll miss the target for migrating to EVs.

A total of 29% of businesses state that half or less of their company car fleets will be electric vehicles by 2027. By lagging behind in the adoption of EVs, such businesses may find themselves running into difficulties in the run-up to 2030 and the years after. Problem areas could include driver adoption and acceptance, adapting their existing policies to include EVs, and most significantly, workplace charging infrastructure and public charging strategies.

The research finds there are various reasons why businesses are hesitant to transition at pace now. A total of 19% said EVs are too expensive for them to acquire, and many flagged their uncertainty around the UK’s charging infrastructure.

Instead, VWFS Fleet says a planned and gradual transition is the best way to resolve the particular challenges individual businesses will face and avoid significant operational disruption.

Emma Loveday, senior fleet consultant, commented: “While it’s great to see that many organisations are making real progress with their EV transition, there’s a concerning number of businesses that are at risk of being left behind that we need to support.

“Organisations need to approach EV transition with a strategy and plan in place. And ensure all relevant stakeholders, not just fleet managers, understand and are committed to the transition. Undertaking a sudden switch can lead to problems with vehicle utilisation if the charging strategy isn’t thoroughly thought-out or issues with driver engagement and acceptance if they haven’t been suitably supported with a switch to EVs.”

Loveday also warned that while transitioning company cars can be seen as the ‘easier’ part of the vehicle fleet to transition, organisations with mixed, or significant commercial vehicle fleets, need to start focusing their attention on transitioning their light-duty vehicles to electric as well.

“With a standard four-year/48-month replacement cycle, there are typically only two to three vehicle replacement cycles left before the 2030 ban comes into place. And with the ongoing issues with vehicle supply and lead times, this timeline is going to be further compounded for fleets.”

Volkswagen Financial Services Fleet added that using consultancy can help organisations with their roadmap for EV transition – including key considerations such as driver education and awareness, as well as charging strategies and maximising electric vehicle utilisation.

Loveday continued: “VWFS offer a multitude of resources and tools that can help fleet decision-makers understand the options and see how the transition can benefit their business, their drivers and the environment.

“With the 2030 ban on new petrol and diesel cars in sight, now is the time for businesses to start at pace the transition to electric to avoid being left behind.”