End of the ICE age
If fleets haven’t been making plans for – or at least considering – the electric future, then now is the time to start. By John Challen
Switching to electric vehicles is no easy task, but companies need to act now to make the process as painless as possible, ahead of the 2030 ban on the sale of new combustion-engined cars. Want to make sure you get it right? Take a look at the advice and guidance from the experts.
Servicing, maintenance, and repair tips
The electric vehicle revolution is transforming the automotive industry. Although progress is being made, there’s still much to do before reaching the UK government's 2030 target of transitioning to alternative fuels. With increasing environmental awareness and government incentives, most businesses are now exploring the viability of EVs for their fleets.
We know operating or planning for an EV fleet can come with its own set of challenges. However, reduced maintenance needs and petrol or diesel fuel savings may offset these costs in the long run.
James Starling, business services director, AA
Transitioning to an EV fleet has aftermarket implications and opportunities. Just like traditional ICE vehicles, EVs require regular servicing and checks, the fees for which must be factored into transition costs. Collaborating with the right partners is essential for businesses navigating the move to EVs. Prestige Fleet Servicing, a partner of the AA, has rounded up several top servicing, maintenance, and repair (SMR) tips for companies making the transition:
• Work with your fleet management provider to ensure they have SMR coverage local to your drivers, as there are currently fewer EV-capable garages in the UK.
• Confirm your SMR provider has the appropriate equipment and trained technicians in place to service your EV fleet, with a minimum of Level 3 certification.
• Monitor SMR spending based on vehicle types and telematics data to detect trends and identify any concerns, such as heavy-footed drivers who may benefit from additional training.
The transition to EVs presents businesses with opportunities for cost savings, improved environmental performance, and access to a growing market segment. A well-managed EV fleet can offer long-term financial benefits while enhancing a company's green credentials. Drivers benefit from lower running costs, improved driving experience, and access to various incentives and privileges, such as exemption from congestion charges and, in some cases, heavily subsidised parking fees.
Communication and collaboration
For businesses interested in electrifying their fleets, not knowing where to start or fears around cost and complexity can make it feel like a daunting task. Making the switch is not a one-size-fits-all approach – every fleet is made up of a diverse group of people with different needs.
The transition begins with understanding the mobility needs of your employees. This does not have to involve huge data sets or detailed insights from telematics. Simply understanding each driver’s charging capabilities and mileage is a good place to start, then they can be grouped based on how difficult they will be to transition, creating targeted support and approaches to assist with each group’s switch.
Organisations have different requirements when it comes to finding the right combination of EVs and plug-in hybrid electric vehicles (PHEVs) remain an important part of the e-mobility journey for some.
Another way businesses can ensure an easy transition for their drivers is by implementing the right infrastructure in the workplace. Businesses should consider investing in workplace charging, improving charge point accessibility and hence smoothing the transition for them – particularly those who are unable to charge at home.
Collaborate with expert partners, who can walk through vehicle choice and funding options, worked TCO, range and energy cost calculations.
“Businesses should consider investing in workplace charging, improving charge point accessibility and hence smoothing the transition for them – particularly those who are unable to charge at home”
Caroline Sandall-Mansergh,
Consultancy and channels development manager, Alphabet (GB)
We recently helped a longstanding customer develop a Green Car Initiative, which offers its employees the opportunity to lease EVs through a salary sacrifice scheme. For many businesses, salary sacrifice car schemes provide an appealing, cost-efficient way to gain access to EVs, and it can help meet the diverse mobility needs of their employee population – including those who may not ordinarily be eligible for a company car. Since the implementation of the scheme, over a quarter (27%) of the company’s fleet is now fully electric.
Electrification does not have to be a significant, instantaneous change. In fact, taking smaller, more manageable steps towards this will make the progression easier. Don’t be afraid to start simple and build from there – it works!
Communication and collaboration
For businesses interested in electrifying their fleets, not knowing where to start or fears around cost and complexity can make it feel like a daunting task. Making the switch is not a one-size-fits-all approach – every fleet is made up of a diverse group of people with different needs.
The transition begins with understanding the mobility needs of your employees. This does not have to involve huge data sets or detailed insights from telematics. Simply understanding each driver’s charging capabilities and mileage is a good place to start, then they can be grouped based on how difficult they will be to transition, creating targeted support and approaches to assist with each group’s switch.
Organisations have different requirements when it comes to finding the right combination of EVs and plug-in hybrid electric vehicles (PHEVs) remain an important part of the e-mobility journey for some.
Another way businesses can ensure an easy transition for their drivers is by implementing the right infrastructure in the workplace. Businesses should consider investing in workplace charging, improving charge point accessibility and hence smoothing the transition for them – particularly those who are unable to charge at home.
Collaborate with expert partners, who can walk through vehicle choice and funding options, worked TCO, range and energy cost calculations.
We recently helped a longstanding customer develop a Green Car Initiative, which offers its employees the opportunity to lease EVs through a salary sacrifice scheme. For many businesses, salary sacrifice car schemes provide an appealing, cost-efficient way to gain access to EVs, and it can help meet the diverse mobility needs of their employee population – including those who may not ordinarily be eligible for a company car. Since the implementation of the scheme, over a quarter (27%) of the company’s fleet is now fully electric.
Electrification does not have to be a significant, instantaneous change. In fact, taking smaller, more manageable steps towards this will make the progression easier. Don’t be afraid to start simple and build from there – it works!
“Businesses should consider investing in workplace charging, improving charge point accessibility and hence smoothing the transition for them – particularly those who are unable to charge at home”
Caroline Sandall-Mansergh,
Consultancy and channels development manager, Alphabet (GB)
Optimise the infrastrucure
As the clock ticks down to the 2030 ban on the sale of new combustion-engine cars, the demand for EVs is rising rapidly. British factories broke a new record in December 2022 when 42,284 electric and hybrid vehicles rolled off the production line, and March 2023 saw new EV car registrations up 18.2% from March last year, the highest growth spike seen to date.
A survey by the AA found that rising energy bills are putting a dampener on owning an EV for nearly 70% of drivers. However, high energy costs aren’t the only culprit – raw material shortages, lack of parts availability, shrinking disposable incomes, and increased charging fees also put the market under pressure.
Rising energy costs also impact state funding. For example, the German government has dropped its EV subsidies by 50% to just €4,500 (£4,000) a vehicle from 2023. Available subsidies there will only be sufficient to provide environmental bonuses for 400,000 EVs, representing just 1% of vehicles currently on the road in the country. This trend may eventually spill over to the UK as consumer appetite for EVs subsides. Already, only 59% of people this year expect to own an EV within the next ten years, compared to 66% last year.
To make it easier for fleet operators to switch to EVs, infrastructure needs to be optimised and charging points must be expanded across the country. By doing so, drivers can confidently make the transition to EVs for longer journeys. Additionally, they can test-drive different EVs to determine which one suits their needs best.
As the demand for electric vehicles continues to rise, concerns about the UK's EV infrastructure linger and this is just one of the things that businesses must consider when looking at transitioning to an electric fleet ahead of the looming petrol and diesel ban in 2030.
Mike Palmer, client development director, Nexus Vehicle Rental
Choose carefully – and sensibly
Operational needs and financial outcomes are key considerations when procuring EVs on fleet. Operationally, it is important to consider and specify the requirements of what is needed from an EV fleet because the requirements will differ, whether it’s a car, van or heavy goods vehicle.
To manage the transition successfully, businesses will need to make a number of decisions, from the vehicle choice, operation and infrastructure perspective. For most businesses, vehicle replacement cycles are still typically three to four years. It is therefore important to cross-reference vehicle requirements and electric model options with replacement schedules. This will allow businesses and fleet managers to create an accurate electrification roadmap that encompasses business need, vehicle availability and renewal timings.
From a financial perspective, cost is often cited as a reason to delay electrification. It is true that EVs can have a higher upfront cost, however these can be offset by the long-term financial benefit of lower operating costs, such as reduced fuel and maintenance costs.
As well as the various grants and loans available from the government, EVs can attract preferential BiK rates which need to be calculated in the whole-life cost of the vehicle. In addition, the tax advantages of the current BiK tax regime, which currently imposes tax rates of 2% for fully electric cars, are currently fixed until April 2025. This means the savings available help balance the impact of increased energy prices.
There are a multitude of elements to consider in EV fleet procurement – and it is not something the procurement department or fleet manager should tackle alone. Fleet requirements can affect several departments in an organisation, so it is important to get input from others as part of the decision-making process. The final decision must be based on business and operational requirements as well as financial objectives.
Simon Staton, client management director, Venson Automotive Solutions
How telematics helps transitioning to EV
Before making the transition to EVs, a solid plan is required, which includes an assessment of the fleet's current needs, routes and charging infrastructure. Telematics can help with this by providing data on current vehicle usage, fuel consumption and routing patterns, which can inform decisions on which EV models to choose. It can also advise on the best charging station locations and how to optimise routes for EV range.
Electric vehicles come in many different shapes and sizes – and choosing the right model for the fleet's needs is crucial. Again, telematics is on hand here to provide real-time data on vehicle performance. This information can be used to make informed decisions on which models are best suited for different types of routes and usage patterns.
It is crucial to provide drivers with adequate training on operating EVs as they function differently from ICE vehicles. Therefore, driver training on EV operation is important. Telematics can create data related to acceleration, braking and speed to help here. This information can be used to identify areas where drivers may need additional training and coaching.
Once the transition to EVs is complete, it is important to monitor the performance of the vehicles to ensure that they are operating efficiently and effectively. Telematics helps provide fleet managers with data on vehicle usage, battery life and charging status. This information can be used to identify areas where improvements can be made, such as optimising routes for better range or reducing unnecessary idling.
Telematics can be a valuable tool for fleets transitioning to EVs, providing real-time data on vehicle performance, usage and charging status. By using this data to inform decisions and optimise operations, fleets can successfully make the transition to EVs and reap the benefits of this sustainable technology.
Joe Heidari, fleet and optimisation sales director, Trakm8