in association with
Peter McDonald
Beyond the upcoming vehicles, there’s a lot more on the horizon for fleets to concern themselves with, reckons the Ohme man
At the time of writing, EV sales are up 13.2% on 2023, taking 17.8% market share so far this year. Perhaps most crucially too, while EV market share in September was at 20.5%, August hit 22.6%, above that all-important 22% ZEV mandate figure that manufacturers will be aiming for by New Year’s Eve.
For all the negativity in some of the popular press, figures above 20% and in particular above 22% even just for a month, are not to be taken lightly. Even five years ago, EVs achieving that level of sales would have been unthinkable. It’s a measure of how easily many people have forgotten just how much EV sales have progressed and how far we’ve come – and just what a major role business drivers have played in that.
Moreover, it’s not just the sales figures that have progressed either, it’s the attitude of drivers as well. A survey this summer found that more than 93% of drivers would never switch back to an internal combustion engine vehicle.
That’s important because it shows that for many this is a one-way journey, underscoring that the numbers of EV drivers will only continue to grow.
So why does the future of EVs look so good? The reasons are numerous. The UK has the strongest mandate for EVs of any national government, especially when compared with mainland Europe, where the figures are CO₂-based rather than solely for EV/non-EVs here. So EVs have legislative backing (and, some would argue, require more), which isn’t the case in other markets.
There is also plenty of choice of EVs available at every level too. The driving range of the new Volkswagen ID.7 is 436 miles, underlining that range anxiety is a thing of the past, while Vauxhall has announced that its new Frontera will have price parity between the hybrid and all-electric models. New, smaller and more affordable electric models are making their way to market too, such as the Volvo EX30 and Hyundai Inster.
A survey this summer found that more than 93% of EV drivers would never switch back to an internal combustion engine vehicle
While the business sector in its purest form is largely responsible for keeping those EV sales healthy, there are plenty of other avenues. Motability, the UK's largest fleet – and for whom Ohme is the exclusive home charger supplier – already said at the start of this year that it expected 130,000 EVs to join its fleet between January 2024 and mid-2025.
Increasing numbers of fleets and salary sacrifice companies are moving towards EVs and announcing official agreements with the likes of Ohme to help their drivers make the transition from ICE vehicles. By supplying drivers with home chargers, it eases that switchover and both the driver and fleet manager benefit from the substantial cost savings of running an EV.
Plus, in turn, if a driver then switches to a smart home electricity tariff from providers such as Octopus or Ovo, then both also get the benefit of even further reduced running costs. In time, the numbers of these types of reduced rate dynamic tariffs offered from utility companies will grow as well as the number of EV drivers increase.
While we’re obviously primarily concerned with business drivers here, it’s also worth considering both the retail and the used car market for EVs. Both are inextricably linked to the running costs of fleet managers and for the wider success and profitability of EVs longer term.
Second-hand prices for EVs have now stabilised and are increasingly representing great value used cars, while OEMs are also incentivising customers via various means such as including chargers on used cars as well as new.
As has always been the case, those incentives on both new and used EVs will inevitably cause some short-term fluctuations in the market, especially for any manufacturers struggling to meet the ZEV mandate. One thing is certain though – for all the posturing and negativity from some circles, EVs are most certainly here to stay and will survive these minor bumps in the road.
In the longer term, electrification will be the dominant powertrain for passenger cars and LCVs, and the earlier that fleet managers start to address any remaining hesitations for that, the sooner they will be able to save money and reduce their costs and embrace the future.
Peter McDonald is mobility director at Ohme. Prior to his current role, he spent two decades working for automotive manufacturers including Nissan, SEAT and the wider Volkswagen Group.
