The role of rental in an electrified fleet future is considered by Gerry McCaig, chief operating officer, Nexus Vehicle Rental.

The UK is continuing to push the adoption of electric vehicles in fleets, with manufacturers needing to achieve a 28% EV sales mix in 2025 and 80% in 2030 (although some businesses will have exceptions to this). It was recently reported that battery electric cars in the UK recorded the highest growth in a quarter, increasing by 58.5% to 65,850 units, holding a record 3.3% share of all transactions. While we are seeing impressive growth in the EV market, it comes with challenges. The upfront costs and operational risks of bringing onboard an EV fleet are high – and there are still uncertainties as to whether the UK’s infrastructure can support such an adoption.

The role of rental in the adoption of EVs is big, with companies becoming key strategic partners to help those easing into EV adoption and providing the flexibility and confidence needed. Using rental in this instance will provide fleet operations with an opportunity to explore the adoption of EV in real-world situations without having to commit to full ownership upfront. Being able to experience the benefits and issues associated with EV is useful for fleet managers who need to understand the performance, charging logistics and employee feedback before they feel confident enough to commit to the long-term investment.

Fleet rental can also help with the issues present in the UK’s lacklustre EV charging infrastructure. Progress has been made to improve the charging ports across the country but there is still a long way to go. Many charging locations do not have the power or numbers needed to keep up with the growing EV market, and this is especially present in the more rural areas where charging options are sparse and far behind the times.

Businesses that operate through mobile workforces also struggle due to the inconsistent coverage and delays at charging locations, leading to a potential loss of revenue and longer travel time for workers. Rental providers help to make these issues slightly easier by integrating smart route planning and AI tools into the platforms, which can help to optimise the journeys and locate suitable chargers as needed.

In addition, the UK government is also continuing its investment in the EV transition with improvements to the rapid charging infrastructure and financial incentives. However, recent changes to the ZEV mandate, partly in response to tariff shifts from the US, could impact the growth made. While the revised tariffs (now reduced from the initial 25% import tax down to 10% on the first 100,000 cars exported to the US) will help to soften the blow, they may still slow down the pace of EV adoption across businesses in various sectors.

Overall, rental companies in fleet are much more than vehicle providers, they are strategic partners. Vehicle rental remains an essential part of the move towards an electric-focused future in fleet, and we believe that this will only become more important in the future as more businesses introduce EVs into their fleets.