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Royal Mail engages all-electric company car schemes

960 640 Stuart O'Brien

Royal Mail has announced a new initiative to ensure all its company cars will be electric by 2030, as the company builds on its ambitions to become a net zero carbon emission business with a 100% alternative fuel fleet.

Under the plans, the Royal Mail will rework all of its current car schemes to accelerate the switch to electric vehicles. This includes widening the access to electric company cars for those colleagues who need a car to do their job. By 2025, only electric cars will be available to order across all company car schemes.

The drive towards electrification will also extend to postmen and women who seek to buy their vehicles through the company’s popular salary sacrifice scheme MyDrive, with the associated tax benefits that come with running an electric company car. Royal Mail plans to offer a range of affordable entry level electric vehicles.

To reinforce the commitment to change, the company says it will only pay business mileage reimbursement at an appropriate electric vehicle rate for diesel, petrol and hybrid private cars and company cars from 2025.

Royal Mail’s says its company car fleet is already changing and has undergone a significant move to electric vehicles since the April 2020 tax changes. Around half of company car orders are now for electric vehicles. It says this new initiative is aimed at accelerating this trend by encouraging the take up of more electric vehicles in a push to reduce the company’s emissions still further. 

Jenny Hall, Director of Corporate Affairs, Royal Mail said: “We’ve already revealed our ambition to turn our fleet to alternate fuel vehicles in order to do the right thing by the communities we serve. It makes sense for us to focus on company cars too, and we hope that this new scheme will benefit our colleagues while reducing overall Company emissions further.”

With the UK’s largest “Feet on the Street” network of over 85,000 postmen and women, Royal Mail claims to already have the lowest reported CO2e emissions per parcel amongst major UK delivery companies. It says the expansion of alternative fuel vehicles demonstrates the Company’s commitment to reducing emissions associated with its operations, and to delivering a cleaner future.

In May, the Company announced the launch of 29 low emission gas powered trucks, fuelled by Bio-Compressed Natural Gas (Bio-CNG). The 40 tonne Heavy Goods Vehicles (HGVs) are similar in size and look to a conventional Royal Mail truck but are significantly quieter. They also emit roughly 84 per cent less CO2e than a typical diesel-fuelled vehicle of this size.

Also in May, Royal Mail announced the launch of its first ever Delivery Office to feature an all-electric fleet of collection and delivery vehicles. The Bristol East Central Delivery Office, located in the City’s Easton area, has had its 23 diesel delivery and collection vans replaced by fully electric equivalents – comprising the Office’s entire collection and delivery fleet. Six electric charging posts and 12 charging points have also been installed on the site as part of the transformation.

Bristol was selected due to the City’s plans for a Clean Air Zone (CAZ), which will require certain vehicles to pay a daily charge to enter its centre. At present, other Delivery Offices across the UK are being considered for similar fleet makeovers in coming months – particularly those in places with existing CAZs, or that have plans to introduce them.

The WhichEV View: Why your company should buy you an EV today

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By James Morris, Editor, WhichEV

In April 2020, the Benefit-in-Kind (BIK) rate for EVs dropped to 0% for the tax year. It rose to 1% for 2021-22, then 2% for three years from 2022 to 2025. Given the previous rate 16%, these are significant changes.

In other words, if you received an electric vehicle as a company car this year, you paid no personal income tax on it until April 2021, and very little until at least 2025, whereas before April 2020 you’d have paid a lot more, making the reduction a significant incentive for employees to have an EV as a company car. In our previous article, we calculated that, if you received a Tesla Model 3 Standard Range Plus instead of a Mercedes C220d saloon as your company car from your employer, you’d save well over £10,000 over three years of use in terms of tax, fuel and other running costs.

But what are the incentives for the employer to buy you an EV? Other than providing an attractive perk for employees, why should your company go electric, when EVs still tend to be considerably more expensive than internal combustion engine cars? In a follow-up to our original article, we will show that buying an EV makes just as much sense for a company as it does for the employee that receives it, and even more so if you run your own Ltd company…

Click here to read more.

The WhichEV View: Future electric cars – Best upcoming electric cars, SUVs and pickup trucks

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By WhichEV

All-electric vehicles are gaining a lot of traction. Growing interest from consumers is driving manufacturers to diversify their portfolios, while governments play a role in offering tax incentives and improving the country’s infrastructure.

Gone are the days where an electric vehicle (EV) is slow, unsuitable for long-distance commutes, and expensive: government grants offer significant savings off your new EV purchase; some all-electric cars are the fastest vehicles around; others push past the 400-mile mark on a single charge.

To understand what is an EV, including the benefits and disadvantages of owning one, read our dedicated guide, here.

As a greater number of all-electric cars start appearing on our roads, it’s important to look ahead into the future. Despite the horrors of the pandemic, 2020 was an amazing year for EV sales, and 2021 is set to be another exciting 12 months. There will be loads of exciting new models arriving this year and beyond. Here are our favourite upcoming all-electric vehicles.

Click here to read the full article.

Note: we’re constantly adding vehicles to this article but do let us know via our social media accounts if your favourite isn’t listed

Considering electric vehicles? Don’t be in the dark

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By Drax

If you’re considering switching your fleet to EV, you can’t make decisions in the dark. You need real intelligence. As the range of available EVs grows, your opportunities for efficiencies and cost savings will expand too. Telematics provides the best route to optimising the benefits of electrification. 

Drax Electric Vehicles can help you build an accurate overview of your operation, using state-of-the-art telematics. As your energy partner, they’ll work with you to plan, implement and manage an electric vehicle infrastructure with renewable power at its heart.

The EV specific telematics devices they supply and fit put data like driving efficiencies, vehicle locations and battery charge into your hands. They also integrate your EV-specific data so you can view it within the context of your existing (non-EV) fleet’s telematics reporting.

Find out how Drax could help you electrify your fleet.

Record numbers of vans on UK roads

960 640 Stuart O'Brien

Commercial vehicles now account for 13.1% of all vehicles on the road in Britain – the highest recorded this century, according to figures released by the Society of Motor Manufacturers and Traders (SMMT).

SMMT’s annual automotive census has revealed that, as of the end of 2020, there were 4,604,861 vans, 589,445 trucks, and 73,608 buses and coaches on the road, out of a total of 40,350,714 vehicles in use.

Truck numbers declined by -3.1% to return to levels last recorded in 2015, while bus and coach units are at their lowest since records began, a consequence of the significant drop in passenger numbers caused by the pandemic.

More positively, vans recorded their 11th year of consecutive growth, increasing by 1.7% year-on-year as an upsurge in home delivery and construction stimulated demand. Many of these vehicles have also been instrumental in supporting the nation during the pandemic, providing support to the NHS, and delivering food and goods across Britain.

The average age of commercial vehicles has also increased, with significant implications for emissions targets and air quality goals. The average van is now just under eight years old, with a considerable number of older vehicles still in operation – including around 725,000 that were first registered in 2005 or earlier.

Meanwhile, at 7.4 years old, the average truck would predate the introduction of Euro VI, meaning they would be fined for entering the London Ultra Low Emission Zone,the Bath Clean Air Zone and, from next month, would also incur penalties in Birmingham. Buses, meanwhile, are now, on average, more than a decade old.

Manufacturers have invested massively to provide a wide range of vehicles with a variety of fuel options – meaning operators are spoiled for choice when renewing their fleet.

With the end of sale of new petrol and diesel vans scheduled for 2030, plug-in van uptake continues to grow but remains far lower than that experienced in the car market.

There are now 14,021 battery electric (BEV) and plug-in hybrid (PHEV) vans in service, accounting for 0.3% of all operational vans – four times lower than the proportion of BEV and PHEV cars.

Based on the SMMT data, Slough is Britain’s zero-emission van capital, having both the highest percentage of electrified van registrations (2.2%) and the highest total number (2,087).

Mike Hawes, SMMT Chief Executive, said: “The past year has highlighted how much Britain relies on its commercial vehicle parc. With less than nine years to go until the end of sale of new petrol and diesel vans, much needs to be done to avoid a long fossil fuel hangover from operators resisting the switch. Fleet renewal must be a high priority for the commercial vehicle sector and the government’s Bus Back Better strategy must be implemented immediately to reverse the decline in bus operations.”

BENF: EVs will be cheaper than petrol cars in all segments by 2027

899 599 Stuart O'Brien

Electric cars and vans will be cheaper to make than fossil-fuel vehicles in every light vehicle segment across Europe from 2027 at the latest, according to a new BloombergNEF study commissioned by Transport & Environment (T&E).

The research found that battery electric vehicles could reach 100% of new sales across the EU by 2035, if lawmakers introduce measures like tighter vehicle CO2 targets and strong support for charging infrastructure.

T&E called on the EU to tighten emissions targets in the 2020s and set 2035 as the end date for selling new polluting vehicles.

Electric sedans (C and D segments) and SUVs will be as cheap to produce as petrol vehicles from 2026, while small cars (B segment) will follow in 2027, BNEF projects. It finds that falling battery costs [1], new vehicle architectures, and dedicated production lines for electric vehicles will make them cheaper to buy, on average, even before subsidies.

But the early build-up of EV production and sales will be crucial to drive down costs and generate consumer buy-in for further adoption in the future, BNEF found. Only stricter CO2 targets for vehicle-makers in the 2020s, including a new 2027 target, can ensure that, T&E said.

Julia Poliscanova, senior director for vehicles and emobility at T&E, said: “EVs will be a reality for all new buyers within six years. They will be cheaper than combustion engines for everyone, from the man with a van in Berlin to the family living in the Romanian countryside. Electric vehicles are not only better for the climate and Europe’s industrial leadership, but for the economy too.”

Light electric vans will be cheaper than diesel vans from 2025, and heavy electric vans from 2026, BNEF also finds. But today, e-vans account for just 2% of sales because of weak emissions standards that fail to stimulate manufacturers to invest in their supply. T&E said EU lawmakers will need to set van-makers challenging CO2 targets, alongside dedicated e-van sales quotas, to increase investment and the number of electric models on the market.

Battery electric cars and vans could reach 100% of new sales by 2035, even in southern and eastern Europe, if lawmakers increase vehicle CO2 targets and ramp up other policies to stimulate the market such as a faster roll-out of charging points. If left to the market without strong additional policies, battery electric cars will reach only an 85% market share, and e-vans just 83%, in the EU by 2035 – missing Europe’s goal to decarbonise by 2050.

Poliscanova added: “With the right policies, battery electric cars and vans can reach 100% of sales by 2035 in western, southern and even eastern Europe. The EU can set an end date in 2035 in the certainty that the market is ready. New polluting vehicles shouldn’t be sold for any longer than necessary.”

The EU Commission should set an end date for fossil-fuel car sales in June, when it will propose tightening the bloc’s car CO2 targets, T&E said. Last month, 27 major European companies called on EU lawmakers to set 2035 as the end date for selling new combustion engine cars and vans.

recent poll showed 63% of urban residents in Europe support a ban after 2030. At least seven carmakers and 10 European countries have announced plans to phase out conventional cars. But, in the absence of an EU commitment, these deadlines remain either voluntary or uncertain as to their enforceability.

UK firms ‘to invest £15.8bn’ in EVs this year

899 599 Stuart O'Brien

UK firms spent £10.5bn on electric vehicles (EVs) and on-site charging points during the year to March 2021, and are now planning £15.8bn of investment in the same area over the next 12 months – a 50% increase year-on-year.

That’s according to research from Centrica Business Solutions, which says two fifths (40%) of those questioned said they had increased the total number of EVs within their fleet between April 2020 and March 2021.

Of these businesses, six in ten (58%) cited the need to meet corporate sustainability targets as the biggest driving factor behind their increased adoption of EV, followed by reducing operational disruption caused by low and zero-emission zones (51%) and the attraction of the lower maintenance and whole-life costs offered by EVs (37%).

Four in ten (43%) businesses hadn’t increased EV numbers at all and 10% decreased their EV fleet size. Range anxiety was reported as the chief concern for a third (34%) of these firms, followed by the need to prioritise business investment elsewhere during the height of the coronavirus crisis (32%).

Despite this, two-thirds (67%) of all companies polled claimed they are well-prepared to operate a fully electric fleet by 2030, when the Government’s ban on the sale of petrol and diesel vehicles comes into effect.

46% of businesses polled plan to install charging points on their premises to facilitate the uptake of EVs across the next twelve months, although more than a third (37%) have already installed this infrastructure. The research also revealed that three in ten (30%) firms have already invested in on-site technology capable of generating the energy to charge their fleet of EVs, such as solar panels, while almost half (48%) plan to do this in the future. 

Greg McKenna, managing director of Centrica Business Solutions, said: “Despite the disruption of the past year, it’s encouraging to see investment in EVs remain a key priority for many businesses. The fact that firms are planning to increase their spending so dramatically over the next 12 months is proof that more businesses are recognising the advantages of adopting low-emission vehicles, especially as they recover from coronavirus and seek to create sustainable growth.

“Now that 2030 is set in stone as the end of new petrol & diesel sales we need to ensure three things to help get us there, sufficient electric vehicles to meet demand, reliable charging infrastructure that’s available to all and a flexible energy system that can deliver green power where it’s needed.”

Rachel Maclean, Transport Minister, said: “As we accelerate towards our net-zero future, I’m delighted to see UK firms at the forefront of the electric vehicle revolution.

“With British businesses set to increase their investment in electric vehicles by 50%, the message is clear – the future is electric. With generous government grants and tax incentives which could save drivers over £2,000 a year, there has never been a better or more exciting time to make the switch.”

Plug-in hybrid range figures causing P11D issues

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Fleets are facing issues with obtaining the zero-emissions range (ZER) figures they need for plug-in hybrids due to complications in how vehicle data is processed and stored.

That’s according to the Association of Fleet Professionals (AFP), which says that PHEVs registered on or after April 6h 2020 that emit 50g/km or less of CO2 need to have the ZEER entered on the P11D.

However, it seems that’s not available anywhere other than on the Certificate of Conformity (COC) that was issued with the car when it was delivered.

The AFP asserts that while filling in the P11D for other fuel types was often challenging, but possible with a little digging, PHEVs were more difficult.

Association Director director James Pestell said: “When it comes to the ZER for post-April 2020 PHEVs, the correct figures do not appear to be obtainable anywhere. They are not on the V5 nor the DVLA website.

“They are included on the COC slip attached to the inside of the windscreen when the car is delivered but there are no fixed processes – or often any processes at all – for how this is handled. It might be sent to the leasing company or just left on the vehicle and detached by the driver when it is delivered, and who knows what happens to it then? Certainly, many and perhaps the majority go missing.

“The supplying dealer or the company leasing the vehicle to you might be able to obtain the figure for you but ultimately, the car operator is responsible for its accuracy and there is no apparent, independent means of checking it.

“If the car has upgraded alloys, for example, it will have a lower ZER and could fall into a higher benefit in kind tax bracket than the standard model, so it’s next to impossible for the fleet operator to work out the figure for themselves even if they obtain the details for a generic model.

“It does appear to be something of an oversight that this data is not easily available because it drives each car’s whole benefit in kind and National Insurance Contribution liability.

“There is a possibility that some leasing companies can access the information through their data providers, so that is one avenue that fleet managers could investigate, but we’re also having ongoing conversations with HMRC about the V5 and this approach would ultimately make the most sense, we believe.”

Jaguar Land Rover will be all-EV by 2025

960 640 Stuart O'Brien

Jaguar Land Rover unveiled its ‘Reimagine’ electrification strategy, which will see the Tata-owned luxury marque’s entire line up going electric by 2025.

Both the Land Rover and Jaguar brands will be electrified on separate architectures with what the company says will be two clear, unique personalities. 

In the next five years, Land Rover will introduce six pure electric variants as through its three families of Range Rover, Discovery and Defender. The first all-electric variant will arrive in 2024. 

By the middle of the decade, meanwhile, Jaguar will have undergone a ‘renaissance’ to emerge as a pure electric luxury brand with a dramatically beautiful new portfolio of emotionally engaging designs and pioneering next-generation technologies. 

Although the nameplate may be retained, the planned Jaguar XJ replacement will not form part of the line-up.

Jaguar and Land Rover will offer pure electric power, nameplate by nameplate, by 2030. By this time, in addition to 100% of Jaguar sales, it is anticipated that around 60% of Land Rovers sold will be equipped with zero tailpipe powertrains.

Jaguar Land Rover says its aim is to achieve net zero carbon emissions across its supply chain, products and operations by 2039. As part of this ambition, the company is also preparing for the expected adoption of clean fuel-cell power in line with a maturing of the hydrogen economy.

Development is already underway with prototypes arriving on UK roads within the next 12 months as part of the long-term investment programme. 

In addition, a new centralised team will be empowered to build on and accelerate pioneering innovations in materiality, engineering, manufacturing, services and circular economy investments.  

Annual commitments of circa £2.5bn will include investments in electrification technologies and the development of connected services, alongside data-centric technologies that the company says will further improve its ownership ecosystem. 

Government drive to simplify EV charging network to combat ‘range anxiety’

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Small businesses and those in leasehold and rented accommodation are set to benefit from up to £50 million to install electric vehicle chargepoints.

The Department for Transport (DfT) has announced that the Electric Vehicle Homecharge Scheme (EVHS), which provides up to £350 towards a chargepoint, will continue next year and be expanded to target people in rented and leasehold accommodation.

At the same time, the Workplace Charging Scheme (WCS) will be opened up to small to medium enterprises (SMEs) and the charity sector, providing a boost as staff return to work. The changes will also mean that small accommodation businesses, such as B&Bs can benefit from the funding, boosting rural areas, and tackling the ‘range anxiety’ associated with long journeys.

This investment comes as the department launches a consultation on improving the charging experience – simplifying payments and increasing reliability – which it says takes the country a step closer to delivering on the commitment to end the sale of new petrol and diesel cars and vans by 2030.

Transport Minister Rachel Maclean said: “Whether you’re on the school run or travelling to work, or don’t have access to a private parking space, today’s announcement will bring us one step closer to building and operating a public chargepoint network that is affordable, reliable and accessible for all drivers.

“As the UK accelerates towards net-zero emissions by 2050, we are determined to deliver a world-leading electric vehicle charging network, as we build back greener and support economic growth across the country.”

The consultation suggests simplifying payment at chargepoints, meaning electric vehicle drivers can use contactless payment but do not have to download an app. It also seeks to make chargepoints more reliable and to force operators to provide a 24/7 call helpline for drivers.

Drivers should also be able to find and access chargepoints easily, so the government is proposing that operators should make location data, power rating and price information more accessible for drivers. This it says is essential for ensuring costs are fair, for driving competition, and for increasing the confidence of both existing electric vehicle drivers and those considering making the switch.

The government says its proposals will ensure that it’s as easy – or even easier – for drivers to charge their car as it is to refuel a petrol or diesel vehicle.

The new investment follows £20 million in funding announced last week for councils to improve the on-street charging infrastructure in their local areas.

CEO of Co Charger, Joel Teague, said: “From a Co Charger point of view, this announcement is particularly welcome because it will put more chargepoints into homes and businesses where they can be shared with their neighbourhoods. Dependable, affordable charging while at home or work is essential for people to make the switch to electric motoring, and by sharing these newly funded chargepoints communities will be able to meet that need.”

Federation of Small Businesses (FSB) National Chair, Mike Cherry, said: “It’s great to see the Department for Transport putting businesses front and centre as part of the UK’s mission to achieve net-zero by 2050.

“Small businesses want to play a critical role in helping the UK reach its green targets, and electric vehicles are the future. That’s why this is important news for the nation, particularly rural areas which are often left behind.”