Optimism for a greener motoring future has never been higher, with over half of fleets confident the Government will achieve the ICE car/van phase-out by its 2030 target, but cross-sector support is crucial to the switch.

73% of large fleets want shorter charging times which can compete with a five-minute fill-up of fuel, according to Autofocus

In the latest issue of its AutoFocus magazine, 360 Media Group – together with Cox Automotive – highlights latest EV trends and finds that while there used to be many obstacles to EV adoption, even SMEs are now making the switch.

Moreover, plug-in hybrid electric vehicles (PHEVs) are no longer seen as a starting point for electrification, with just four out of 10 fleets expecting to place an order for these vehicles this year.

And, they say, the Government’s recent withdrawal of the Plug-in Car Grant is barely registering with fleet buyers, whose EV strategies have already been signed off and are in the process of being delivered – when the new vehicle supply shortage allows.

But low company car tax remains a vital incentive – a primary concern for UK fleets is that HMRC is planning double-digit taxation on electric company cars.

As Ian Richardson, managing director at 360 Media Group, explained: “There needs to be greater certainty around Benefit-in-Kind (BiK) tax tables beyond 2024/25. The taxation may not be as high as the 37% BiK tax levied on many ICE vehicles, but the higher list price of BEVs means the impact on drivers’ tax bills would be significant.”

He added that total cost of ownership (TCO) of EVs is also an issue for a third of fleets, who are unsure if they can compete with internal combustion engine (ICE) vehicles.

“Unfortunately, predictions of vehicle price parity by 2026 are doing little to alleviate these concerns, proving that it isn’t just the Government that needs to up its game, with manufacturers and leasing companies also feeling the pressure.”

Comprehensive charging 

Charging infrastructure also needs action to alleviate driver charge anxiety – 73% of large fleets want shorter charging times which can compete with a five-minute fill-up of fuel, according to Autofocus.

Longer ranges would benefit employee productivity, saving valuable time on the road. Across the company car parc, 43% of vehicles make frequent national business journeys and extended charging durations, together with a lack of charging facilities, cause excessive downtime.

“Future EV investment requires better charging infrastructure – the ratio of chargers to EVs will soon become a critical measure, particularly in cities and clean air zones,” said Richardson.

Research by 360 Media has also found that the end of the Electric Vehicle Homecharge Scheme has reinforced the desire to bundle the cost of a home charger with the monthly leasing rental – 57% of fleets have requested this.

e-LCVs catching up 

While van and light commercial vehicle fleets once lagged behind EV adoption targets due to a lack of cost-effective vehicles and limited choice of operationally capable models, the sector is quickly catching up, with the all-new Ford E-Transit set to lead the charge.

Richardson explained: “The sector still requires additional support, mainly via the introduction of dedicated charging stations, which must be big enough to accommodate large vans. This is a priority for a whopping 86% of fleets.”

Accessible on-street charging is also a significant concern, particularly for drivers who do not have access outside of working hours. Equally, recovering costs through reimbursement is proving tricky, with many having to tally up figures across home, workplace and public chargers.

Cross-sector effort to make electrification viable for all

“HMRC’s AER (Advisory Electricity Rate) woefully underestimates the true electricity cost per mile of an e-LCV. Overall, 43% of fleets seek an electric charge payment reimbursement solution… this is currently their number one administrative burden,” added Richardson.

Philip Nothard, insight and strategy director at Cox Automotive, agrees with Ian Richardson that everyone must do more to make electrification a viable avenue for more businesses.

“It’s clear the UK is making great strides in the EV market for all manner of vehicles. As 360 Media Group reported, over half of fleets are confident in the Government achieving its target to end the sale of cars and vans with internal combustion engines by 2030.

“Forecasts suggest two out of every three UK fleets will order an EV during the next 12 months, which is a huge development. Yet in order to support this burgeoning industry, a comprehensive infrastructure overhaul must be implemented as soon as possible,” summed up Nothard.

“The responsibility must be shared across the automotive sector – with manufacturers, leasing companies, charge point operators, charging payment solutions and remarketing channels all playing their part.”

To read more in AutoFocus, click here.