PHEVs IN FOCUS
Plug and play
They might not suit everyone’s needs, but plug-in hybrids make a lot of sense for fleets. By Ian Richardson, managing director, 360 Media Group
PHEVs IN FOCUS
Plug and play
They might not suit everyone’s needs, but plug-in hybrids make a lot of sense for fleets. By Ian Richardson, managing director, 360 Media Group
The growth of electric vehicles is widely publicised, with a current market share of 13.9% YTD – and we are heading for record numbers for 2022, possibly exceeding 200,000 units for the entire year. Plug-in hybrid electric vehicles (PHEVs) are tracking 44% of BEVs, with a YTD share of 6.3%, down by 0.3% year-on-year.
The three-year fleet prediction from UK fleets (in terms of the percentage of fleets that intend to place an order in the next 12 months) highlights that BEVs are established in drivetrain consideration.
While the graphic below shows that the intent to order a PHEV has declined, there are still two in five fleets intending to order go down that route.
INTENT TO ORDER A PHEV IN THE NEXT 12 MONTHS
THE DEMAND FOR PHEVs
Crucially, the electric powertrain has more battery capacity than a non-plug-in hybrid (HEV), which means a longer range of around 20-30 miles typically, with certain models exceeding this.
However, the battery packs in a PHEV are larger and heavier than in a hybrid, which means interior space can be compromised in some models and efficiency is affected when running on the petrol engine.
It’s also vital to ensure your drivers are running and charging PHEVs correctly and to their maximum electric ability to maximise running costs.
“For some fleets, it’s quite a risk to leap from petrol/diesel to electric in one move. This is where PHEVs come in because they can offer reduced tailpipe emissions”
WHAT'S THE MOVE?
The move to electrified powertrains is now becoming more marked and while strategically, pure electric is the longer-term play, the long-term for many is now. According to 360 Media Group’s latest EV Index, 71% of fleets expect to order a BEV in the next 12 months. This is a consistent trend; the question for many fleets now turns from ‘If’ to ‘How many?’
Almost one-third of fleets are NOT intending to order a BEV anytime soon. The critical barriers of range between charging and cost continue, while despite BiK tax advantages, one in four drivers do not currently want to switch to electric cars. Several admin challenges are identified around payment and reimbursements while charging infrastructure remains a barrier.
With these barriers in play, for some fleets, it’s quite a risk to leap from petrol/diesel to electric in one move. This is where PHEVs come in because they can offer reduced tailpipe emissions: improved local air quality and better for the environment. They also deliver operational flexibility of petrol and diesel while providing pure electric benefits and the driver accesses lower BiK tax vs. ICE models.
Lower fuel costs can offset the higher initial purchase costs of PHEVs if they are run effectively on electricity for as much time as possible. The monthly rental is unlikely to require a company car driver to contribute to the monthly rental.
We asked fleets what their motivations are for ordering PHEVs and the main ones were: fuel cost reductions; corporate social responsibility and lower BiK tax.
PREPARING TO SWITCH
It is essential to understand who suits driving a PHEV and is committed to using it properly too – so the utility factor is as high as possible. This means updating your fleet policy to ensure employees comply with charging procedures.
Our latest research identifies that 48% of fleets have updated their fleet policy to accommodate BEVs and PHEVs. Ensure that the driver signs a declaration to charge their PHEV (where possible).
360 Media Group identifies four distinct fleet driver profiles to help the supply network communicate with buyers: local schedule; occasional use; mobile office and executive travel. PHEVs work well with two of these groups (local schedule and occasional use) based on the assumption that shorter journeys mean that the driver can optimise their electric battery on their commute to work and for local journeys.
Research suggests that 32% of fleets cite local schedule as their primary car usage, conducting local business journeys (travelling fewer than 100+ miles a journey), and 10% are occasional use fleets (travelling fewer than 50 plus miles a journey, but travelling just once or twice a week).
STRATEGIES AND TACTICS TO CONSIDER
Consultation and communication will be crucial in making the change to PHEVs for drivers and managers. PHEVs create a tremendous amount of interest among drivers, but this is not necessarily the same as a firm commitment. In order for your fleet to transition to them, you will need to make the case to both potentially sceptical drivers and management concerned with operational efficiency and cost-effectiveness.
Volvo has a wide range of plug-in hybrid models, including the XC40
