Drive your fleet towards electrification
By Matthew Boswell, managing director, Leasys
The automotive landscape is undergoing a big transformation, with a heightened focus on sustainability and the transition to EVs. In the UK, the future of fleet management is intricately tied to the adoption of electric vehicles – and long-term rental and operational leasing play a major role here.
The push towards electrification is driven by a commitment to reduce carbon emissions and combat climate change. Though some have showed opposition to the UK pulling back slightly on its plans, the Government has still set ambitious targets to ban the sale of new petrol and diesel cars by 2035, paving the way for a cleaner future.
While EV uptake among consumers has slowed in the UK in 2023, businesses are making up for lost ground and, as fleets grapple with the transition to electric vehicles, the role of long-term rental and operational leasing becomes increasingly pivotal.
Long-term rental services offer businesses flexibility in adapting to the rapidly changing automotive landscape. Unlike traditional ownership models, long-term rental allows businesses to access a fleet of vehicles without the burden of ownership. This approach is particularly advantageous in the context of the shift towards electric vehicles, where rapid technological advancements and evolving charging infrastructure require adaptability.
Companies such as Leasys provide businesses in the UK with a range of electric vehicles. This setup enables fleets to explore electrification without committing to the high upfront costs associated with purchasing electric vehicles. The flexibility of long-term rental allows for easy scalability, ensuring that businesses can adjust their fleet composition in response to the changing demands of the market.
“As fleets grapple with the transition to electric vehicles, the role of long-term rental and operational leasing becomes increasingly pivotal”
Matthew Boswell managing director, Leasys
More generally, the shift will encompass a collaborative effort among stakeholders, along with fostering a shift in our collective environmental consciousness. To date, these changes can be clearly seen in the composition of the fleet, where battery electric (BEV) and hybrid vehicles already make up 30%, in line with our target for 2026, where one out of every two contracts will be for a green vehicle.
Operational leasing takes fleet management a step further by providing a comprehensive solution that includes vehicle acquisition, maintenance and disposal. In the context of the transition to electric vehicles, operational leasing becomes a strategic tool for businesses looking to seamlessly integrate EVs into their fleets – this is an area that is expected to grow in 2024.
The switch to EVs can be eased by embracing the continental model of contract hire as full-service leasing, and this approach is reflected in the comprehensive suite of products and services available under the Leasys umbrella.
One of the key advantages of operational leasing is the ability to mitigate the perceived risks associated with EV technology. As electric vehicles are still relatively new to many businesses, concerns about maintenance costs, battery life, and resale value may be deterrents. Operational leasing providers take on these risks, offering businesses a predictable cost structure and peace of mind.
The success of electric vehicle adoption depends on the availability and accessibility of charging infrastructure. Rental and leasing providers play a crucial role in supporting businesses through this transition by offering solutions that address charging needs.
Beyond the practical advantages, the adoption of electric vehicles through leasing is likely to align with corporate social responsibility (CSR) goals. Businesses recognise the importance of reducing their carbon footprint and contributing to a sustainable future. By incorporating electric vehicles into their fleets, companies can showcase their commitment to environmental responsibility and position themselves as showing leadership in sustainable business practices.
The future of fleet management is undeniably linked to the transition to electric vehicles. Long-term rental and operational leasing companies are playing a pivotal role in facilitating this transition. The flexibility offered by rental and the solutions provided by operational leasing make them effective partners for businesses navigating the transition to electrified fleets.
As the automotive industry continues to evolve, innovative fleet management solutions will be instrumental in driving a cleaner and more sustainable future on the roads.
