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electric vehicles

Upcoming zero benefit-in-kind for EV vans ‘Under-Publicised’

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The new zero per cent benefit-in-kind rate for electric vans that takes effect on 6thApril has been ‘under-publicised’ when it should be helping lead to faster, wider adoption, says the Association of Fleet Operators (AFP).

Chair Paul Hollick said that a key element of success in boosting demand for electric cars over the last year has been the low level of taxation, and that something similar needs to happen in the light commercial vehicle sector.

“We’ve seen in the EV market how the 0% tax rate has been decisive when it comes to driving company car driver interest and, as it has become more widely known, demand for electric cars has increased exponentially,” Hollick said.

“While eLCV drivers have a much reduced say over what they drive compared to company cars, there is certainly potential for a similar effect. However, our feeling across the AFP membership is that the whole subject has been underpublicised.

“We are now in a position where a choice of electric vans are coming onto the market to meet a wide range of needs and for which the whole life costs look competitive, based on initial figures. What we need now is greater awareness.

“Certainly, as a trade body, this is an area that we are looking at in detail. Several of our larger corporate members are committed to large scale adoption of eLCVs and we are monitoring their experiences with interest.”

Hollick added that crucial to the adoption of electric vans was ensuring that fleets measured their running costs on a simple whole life cost, pence per mile basis rather than looking at the capital cost.

“The arrival of both electric cars and vans has highlighted the surprising number of businesses that still acquire vehicles largely by looking at the purchase price. This disadvantages EVs, which cost more to buy but less to fuel and maintain,” said Hollick.

“We’re doing quite a lot of work in this area, especially through our new EV training course, which takes place for the first time in March, showing how to integrate these vehicles into choice lists and buying strategies alongside petrol and diesel alternatives.”

Do you specialise in Electric & Hybrid fleet Vehicles? We want to hear from you!

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Each month on Fleet Management Briefing we’re shining the spotlight on a different part of the fleet market – and in January we’ll be focussing on Electric & Hybrid Vehicle solutions.

It’s all part of our ‘Recommended’ editorial feature, designed to help fleet buyers find the best products and services available today.

So, if you’re a supplier of Electric & Hybrid Vehicle solutions and would like to be included as part of this exciting new shop window, we’d love to hear from you – for more info, contact Chris Cannon on 01992 374096 / c.cannon@forumevents.co.uk.

Here’s our features list in full:

Jan – Electric & Hybrid Vehicles
Feb – Dash Cams
Mar – Driver Training
Apr – Accident & Risk Management
May – Fleet Management Software
Jun – Telematics/Tracking
Jul – Contract Hire & Leasing
Aug – LPG/Alternative Fuel & Fuel Management
Sep – EV Infrastructure
Oct – Duty of Care
Nov – Grey Fleet
Dec – Service, Maintenance & Repair

WEBINAR: This is the one you don’t want to miss! Let’s Explore Commercial Electric Vehicles

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By Webfleet Solutions

2020 has been a landmark year for electric vehicles (EVs), with pure battery powered car sales increasing over 195% from 2019* While EV is gathering pace in the personal and company car market, commercial vehicle uptake has been somewhat slower. 

Join our team of panellists Jonny Berry (Groupe Renault), Paul Kirby (Vanarama) and Neil Chamberlain (SSE) as they explore the commercial EV landscape, the factors that are driving higher rates of adoption and the new stakeholders that will reshape the ecosystem. Our team of experts will give a realistic view of the challenges the businesses face in adopting commercial EVs.

Register here for the webinar

Almost half of Arval staff already go electric through “rewired” company car scheme

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Almost half of the more than 200 Arval staff who qualify for a company car have already switched to an electric vehicle (EV) since the launch of a new scheme in May.

The rethink is aimed at speeding up fleet electrification in order to reduce emissions, to showcase best practice and to educate drivers about the increased choice of EVs and improved charging infrastructure now available, explained Arval UK HR Director, Ailsa Firth.

She said: “We’re regularly providing advice to customers who want a rapid switch to electrification for a large proportion of their fleet. Our own company car scheme has now turned that guidance into reality, to act as a real life case study from which others can learn. 

“We completely rewired our approach, taking into account factors such as cost, choice and CSR, to create a scheme that covers the vast majority of EVs currently available on the market, alongside hybrids, petrol and diesel vehicles.

“Much work has gone into the structure of these choice lists, as well as ensuring that other key factors that make up our company car scheme, such as cash allowances, whole life cost allowances and whole life methodology, are incorporated into our latest thinking.

“Especially, with the 0% benefit-in-kind taxation rate in effect for the 2020-21 tax year, we expect EV uptake among employees to continue to be very high.”

Under the new scheme, drivers can switch to an EV if their current company vehicle is more than 18 months old and Arval is also offering employees free use of more than 40 charging points at its Swindon head office.

Changes to Arval’s Ignition salary sacrifice scheme have also ensured that all employees can access EVs and low-emission vehicles at attractive monthly rates, regardless of grade or benefit package.

“For a 40% taxpayer, we can provide an electric hatchback at around half what they would expect to pay otherwise. Salary sacrifice schemes make a lot of sense at the moment and take-up has been high,” added Ailsa.

New whitepaper from Webfleet Solutions: ‘Prepare to plug in’

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To coincide with the launch of Webfleet Solutions Electric Vehicle functionality within WEBFLEET, the company have announced a new whitepaper: ‘Prepare to plug in’.

In this edition they explore what electric vehicles will mean for commercial fleets and how telematics can unlock their full value. The big question for anybody that wants to add EVs to their fleet is this: how do I ensure I get all of the positive impact while avoiding the pitfalls? This guide is here to help.

To find our more please visit this website.

Fleets ‘key to unlocking an electric vehicle revolution’

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UK fleets have the potential to accelerate an electric vehicle (EV) revolution, with a shift to zero tailgate emissions generating fuel cost savings of around 63% across a fleet and significantly boosting the second hand car market.

That’s according to a new report from Cornwall Insight and PwC – “Leading the charge! Fleet charging – a catalyst for the EV revolution”, which says that with 5.3 million vehicles on the UK’s roads, fleets – a group of vehicles owned or leased by businesses – are a vital part of the transport sector. 

As the UK moves towards net zero, fleets could be a major component in this journey by leading the charge in the electric vehicle roll-out – a move that would represent half of the number of EVs expected by 2030.

The decarbonisation of the light vehicle fleet will also have a positive impact on air quality. Research in the report states that if all 5.3 million fleet vehicles were to generate zero emissions as much as 30 million tonnes of CO2 would be eliminated – around 25% of all UK transport emissions.

In evaluating the electrification of the fleet market, the report identifies which segments of the sector will be crucial to leading the EV revolution and outlining a road map that fleets may follow as they electrify.

Key findings of the report:

  • Fleet electrification is a critical catalyst that will enable the EV revolution in the UK.
  • Field services, depot-based logistics and leased corporate car fleets are likely to electrify first.
  • Government policy has a critical role to play in enabling the EV fleet transition.
  • The business models of charge point operators need to incorporate some key principles to be successful.
  • Fleet electrification providers will be an attractive opportunity for institutional investors.
  • If fleets are to maximise the opportunity of electrification, they need to take some critical and preparatory steps in designing their road map.

Not only do fleets constitute a sizeable proportion of the UK’s transport sector, but they are also responsible for more than half of new car registrations (56%) in 2019. So it is easy to see how the electrification of fleets has transformative implications for EVs.

And with a life cycle of between two to four years, fleet electrification has the potential to accelerate growth in the private, second-hand market. As fleets renew their stock, this will not only deliver greater choice and affordability for consumers but will, in turn, act as a catalyst for increased consumer adoption of EVs. Choice and affordability are still one of several barriers to EV update.

However, as the fleet electrifies, this will reinforce the need and underpin the economics of EV charging infrastructure throughout the UK. This will ensure ‘range anxiety’ does not stall the electrification of this vital segment.

On the findings of the report, Daniel Atzori, Research Partner at Cornwall Insight, said” “The electrification of fleets is set to gain momentum, driven both by sustainability commitments and by compelling economic drivers. 

“Fleets are likely to play a crucial role in the upcoming electrification of mobility and therefore in the decarbonisation of transport.

“Since fleets can ensure a high rate of utilisation of charging assets, fleet charging offers a range of interesting investment propositions. Having a clear and well-defined strategy will be crucial for fleet managers, charge point operators and investors looking to achieve leadership in this emerging market.”

Steve Jennings, PwC’s Energy and Utilities leader, said: “As well as demonstrating the appeal for investors, our report also illustrates  how utilities and charge point operators (CPOs) may play a key role in supporting EV fleet adoption, with business models evolving around advisory support to promote charging infrastructure and fine-tune electrification.

“It’s clear that field services, depot-based logistics and leased corporate car fleets have the right characteristics (such as predictable driving and charging patterns) to spearhead EV adoption.

“However pent up demand and rising levels of awareness amongst fleets is not enough to accelerate adoption.Government policy has a critical role to play. As we emerge from the current Covid-19 pandemic, alongside a strong focus on stimulating economic growth, we may see a growing emphasis on sustainability, including regulatory and strategic support for EV charging, to help address emission levels and improve air quality.

“Without policy certainty for all stakeholders across fleets, EV charging providers and investors, there is a risk that the full potential of this burgeoning EV revolution will not be realised.”

EVs the focus of AFP’s first industry committee

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The first details about the first of a new series of ‘industry leading’ committees have been announced by the Association of Fleet Professionals (AFP).

The Electric Vehicle, Low Carbon and Alternative Fuels Committee will be led by AFP deputy chair Stewart Lightbody and vice-chaired by Paul Hollick, AFP co-chair. It includes Denise Lane of Capita, Chris Joyce of the AFP, Steve Cuddy of Close Brothers, Eric Bristow of Schindler, Ken Needham of Foxtons, Simon King of Mitie, Dale Eynon of DEFRA and Lorna McAtear of National Grid. 

Its adopted mission statement is to “advise fleet operators how best they can make the transition from standard fuel types to electrification and other alternative fuels” with topics under consideration including: support from central and local government, and the treasury; home charging policies, employee reimbursement and usage; electric highway charging; best practice for EVs and PHEVs, and alternative fuel vehicles beyond EVs.

Lightbody said: “Clearly, EVs, low carbon and alternative fuels are very much front-of-mind for fleets at the moment and we’re looking to generate industry-leading thought and discussion across a wide range of relevant areas where fleet managers are looking for guidance and information.

“The calibre of committee member we’ve been able to attract is very impressive and we’re planning to serve as an incubator for ideas that will ultimately affect not just fleet strategies but policy and action across manufacturers, government, the HMRC and the DVLA.”

The AFP was formed in March from the merging of the Association of Fleet Operators (ACFO) and the Institute of Car Fleet Management (ICFM) – and the new committees are part of the infrastructure being created around the new organisation.

The Electric Vehicle, Low Carbon and Alternative Fuels Committee is the first of seven planned by the AFP, the others being Light Commercial Vehicles; COVID-19; Government Bodies and Trade Associations; Road Use and Planning; Risk and Compliance; and Future Mobility Steering.

Paul Hollick, co-chair at the AFP, said: “One of the major intentions behind the formation of the AFP was that it would enable the fleet sector to speak with a single, unified voice, in order to have the best chance of being heard at the highest levels of decision making, including across Whitehall.

“These new committees, covering what we believe to be the most important issues facing fleets at this point in time, are very much designed to serve as forums for the best new thinking in our industry, where issues and ideas can be discussed and refined into clear policy.

“We’re really pleased to see that the EV, Low Carbon and Alternative Fuels committee has been able to attract some impressive names but we’re still putting the other six committees together, and we’d like to hear from anyone who would like to take an active role within the AFP by participating.

“It could be that you have a special interest in one of these areas or that you simply believe that you have what it takes to make a contribution in general and would be happy to sit on any of them. We’re saying, ‘get in touch with us, your industry needs you.’”

Fleet managers interested in joining any of the committees should contact the AFP Administration Centre at administration@theafp.co.uk. Committee meetings will take place once every two months, with the intention that most will take place through video-conferencing.

What coming out of lockdown means for electrification in fleets

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By Shaun Sadlier, Head of Consultancy, Arval UK

The moment before lockdown perhaps now seems like a long time ago but, if you cast your mind back to early March, there was much excited talk about the prospects for electric vehicles on UK fleets.

Chancellor Rishi Sunak had just announced a three-pronged commitment from the government to support the EV market – advantageous tax measures for businesses, similar benefits for drivers, and expenditure to support the growth of the charging infrastructure. A whole raft of new EVs were announced that looked set to assist in broadening the fleet appeal of electric cars for fleets and drivers. It seemed as though the moment had come for EVs to become mainstream company cars.

Then coronavirus happened. The question now is, will the lockdown and the “new normal” that follows affect the prospects for electrification?

To answer, we need to ask what has changed for fleets over the last few months? Initial feedback from businesses suggests that there is a refocussing of priorities. While few are signalling any reduction in numbers of vehicles, many will be putting a focus on costs. With this in mind, we at Arval UK see no reason why fleets should waver in their drive towards EV adoption. Indeed, there are factors that may make corporate commitment to zero emissions vehicles even stronger. 

Firstly, the tax incentives and other measures that the Government announced pre-crisis remain in place and are still highly attractive from a financial point of view.

Secondly, while the purchase price of EVs are generally high compared to petrol and diesel cars, our experience at Arval UK is that the total real world running costs are highly competitive and, in some cases, better than internal combustion engine alternatives. This is something that may not yet be widely understood but we are planning wider education to make this point explicit.

Lastly, the desire for businesses to reduce their carbon footprint and work towards reduced emissions is unlikely to be changed by coronavirus and there may even be a shift towards placing greater emphasis on these areas as a result of the crisis, to come back better than before – an intention we’ve heard from many of our customers.

So, overall, while there may be a slight delay in the drive towards electrification, the direction of travel hasn’t changed at all, something that we very much welcome. Our view is that electrification is good for businesses, their drivers and the planet. The current crisis hasn’t changed these facts.

Arval UK: Latest budget will continue to boost electric vehicle uptake in fleets

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The March budget, announced before the country entered lockdown, created conditions that are expected to continue to increase electric company car and van uptake in fleets, says Arval UK.

Measures announced by the Chancellor provided a stable platform from which businesses could begin to increase electric vehicle (EV) adoption over the next few years – said David Watts (pictured), consultant at Arval. However, there were a few caveats of which fleets should be mindful.

“The Government adopted a three-pronged approach in its latest budget, with advantageous tax measures for both businesses and drivers, expenditure to support the growth of recharging infrastructure and a commitment to support the EV new car and van markets.

“In this context our view is that, taken as a whole, this represents an overall boost for fleets that are looking to adopt EVs in substantial numbers in the medium-term.”

He added: “Although the budget reduced the new plug-in car grant  and removed it from vehicles costing more than £50,000,taken alongside the already-announced 0% benefit-in-kind tax rate for EV drivers in 2020-21 and the government’s mooted plans to end petrol and diesel production in 2035, the  announcements will undoubtedly still continue to help cement uptake of EVs from businesses and company car drivers.”

Arval UK had already been in extensive discussions with fleets before the lockdown about how they could add EVs to their operations, David confirmed. These were continuing and could lead to an unleashing of demand once businesses began to function normally once more.

“Much of the work we are doing within the Arval Consulting team is on integrating ultra-low or zero emissions vehicles into choice lists in an effective manner, so that they become a viable and attractive option for drivers. Where this is being done, uptake tends to increase dramatically.”

Lightning storms on list of top EV anxieties

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Almost one fifth of petrol and diesel car owners are put off going electric because they’re worried about driving in adverse weather conditions, including, um, lighting storms.

Interest in green motoring continues to grow as Brits look to cut their carbon footprint and reduce their running costs, with sales of pure electric cars up by 151 per cent in October.

But despite the growth, and Government plans to phase out the sale of conventional petrol and diesel cars by 2040, several myths around electric vehicles (EVs) remain.

A survey of petrol and diesel drivers revealed 22 per cent would not feel safe charging an electric car.

Meanwhile, 18 per cent said they didn’t think it would be safe to drive through a lightning storm, and 12 per cent wouldn’t feel happy about charging their phone in an electric car.

And while London currently boasts more than 20,000 electric vehicles, 1,700 electric taxis and Europe’s largest electric bus fleet, it is here where petrol and diesel owners are most concerned about the supposed dangers of zero emission driving.

Almost one-third (29 per cent) of Londoners were worried about driving in lightning, with the same figure having safety concerns about driving in the rain.

In comparison, just 11 per cent of people in East Anglia were worried about going out in an electric car in the same conditions.

Hyundai conducted the myth-busting research as society looks at ways to reduce its carbon-footprint – with the automotive sector already investing billions of pounds to bring more electric vehicles to market, helping to manage the transition to a zero-emission motoring future.

Of the 2,000 petrol, diesel and alternatively-fuelled vehicle (AFV) drivers polled, 56 per cent said the government was doing the right thing by encouraging motorists to switch to AFVs by 2040.

It follows another study undertaken by the car manufacturer which found that 46 per cent of motorists cited range anxiety as one of their major concerns about buying an electric car.

This is despite the average Brit driving around 20 miles per day and the UK boasting more public charging stations than petrol stations.

The existence of myths could be down to a lack of education about electric cars, with 28 per cent of those polled, via OnePoll, admitting they don’t know enough about EVs.

Sylvie Childs, Senior product manager at Hyundai Motor UK, said: “It’s been fascinating to hear about some of the misconceptions that people still have about electric vehicles.

“We’ve all been told you don’t mix electricity with water, but when it comes to EVs there’s absolutely no extra risk of driving in a lightning storm – they are just as safe as a petrol or diesel car.

“Range anxiety is also an interesting one. When electric cars first came out the range was an issue we had to tackle, but these days you can get almost 300 miles on a single charge and this will increase further in time.

“The NEXO hydrogen fuel cell car can travel even further with a range of over 400 miles and takes less than five minutes to re-fuel with hydrogen.

“But despite these common misconceptions, our research, along with the growth in sales figures, shows there is a real appetite for low emission vehicles in the UK.

“It’s for us in the industry, working together with Government and electricity providers, to make sure drivers understand the reality of EV ownership.”

For its part, Hyundai has sought to address the top ten concerns and myths about electric cars:

1. Range anxiety bringing you down?
Don’t panic. A typical electric vehicle (EV) covers between 100 and 200 miles on a single charge and even longer on some models with ranges of more than 300 miles. Hyundai’s KONA Electric can actually go as far as 279 miles with one charge.

2. Worried you won’t find anywhere to charge?
No need to be! There are currently more than 14,500 public charging points in more than 9,000 locations in the UK and the network is growing rapidly.

3. Think an electric vehicle is too expensive?
Think again. With more and more affordable and competitive options and fewer moving parts to fail or need replacing, EVs are in fact cheaper to run than conventionally fuelled vehicles.

4. Worried that electric vehicles are too sluggish?
Not true! Instant torque delivery means EVs can accelerate just as quickly and if not much quicker than their petrol or diesel counterparts. For example, Hyundai’s Kona Electric can accelerate from 0-62mph in just 7.9 seconds.

5. Think you can’t take an electric vehicle through the car wash or drive in a lightning storm?
Of course, we’ve all been told that you don’t mix electricity with water, but when it comes to EVs its perfectly safe to use a car wash and there’s no extra risk of driving in a lightning storm.

6. Not enough choice in the market?
The electric car market is expanding rapidly. In fact, Hyundai currently has the largest e-mobility fleet in the world including the latest in electric, hybrid and hydrogen fuel cell vehicles.

7. Worried that electric vehicles’ batteries are adding to the landfill crisis?
EV batteries can be recycled just like the batteries in petrol or diesel cars. EV power cells can be used to store solar and wind energy, or they can be broken down with their more-valuable elements reused .

8. Doubting the safety of electric vehicles?
Rest assured that EVs undergo the same rigorous testing and meet the same safety standards required for petrol or diesel fuelled cars.

9. Worried about your breakdown cover?
No reason to be. The majority of breakdown suppliers now provide services for all EVs as well as conventional vehicles.

10. Don’t think an electric vehicle will fuel your petrol head needs?
You won’t be disappointed. As soon as you push down on the accelerator, the transition from stationary to speed is almost instantaneous.