The government’s new electric car grant, offering drivers up to a £3,750 discount to buy electric cars, has been in the headlines, but while it’s undoubtedly good for consumers, it doesn’t help businesses.
That’s according to Andrew Tavener (pictured), Head of Fleet Marketing EMEA at Descartes, who argues that for logistics businesses, the challenge of purchasing an EV goes far beyond simple vehicle costs.
“[It’s] a much more complicated and considered purchasing decision, and so more needs to be done to support businesses,” he says. “So, even though in the UK, electric models now, slowly, accounting for 6.3% of new LCV registrations, up from just 1.2% in 2020, logistics businesses are still hindered by a transition to electric vehicles, thanks to a lack of basic infrastructure and whole host of other issues to consider.
“For instance, while some grants help offset purchase prices, the real operational hurdle in managing all fleets is to establish how mileage can be reduced across the board, before even considering that of EV fleets. But, equally any transition to an EV fleet must consider mileage of the vehicle and downtime.
“For instance, fleets where vehicles are on the road for 12 to 13 hours per day may be handed off between drivers, which presents one of the most significant challenges for businesses in terms of electrification. Consumers find it difficult enough to plan routes with the current infrastructure; but for businesses, this complexity is tenfold. Home charging frustrations experienced by consumers are minor compared to the infrastructure and scheduling issues faced by logistics operators, who must ensure vehicles remain on the road, not waiting at a charger.
“Without these basic fundamentals in place, these challenges erode the cost benefits of grants for businesses. Therefore focus for businesses must, first and foremost, be on smarter fleet management, which includes reducing unnecessary miles for all vehicles (ICE and EVs), and using data-driven technology to plan efficient routes along which to travel. This first step makes electrification a viable and sustainable option for the logistics sector, before it even considers the rest of the infrastructure and vehicle selection challenges on the market.
“Just knowing how far and where your vehicles travel on a daily basis can provide businesses the knowledge to make incremental small changes that lead to long-term cost savings down the line.”
