End of the Road for Petrol and Diesel Vehicles
The ban on the sale of new petrol and diesel cars has been brought forward under the government’s new green plan.
This will further pressure the adoption of electric vehicles, which have been a hot topic for the automotive industry. Manufacturers are pumping billions into the development of new model ranges and their take up is being encouraged through grants off purchase prices, investment in charging infrastructure, and preferential tax treatment.
Following the Government’s announcement of a deadline for ceasing the sale of cars and vans without the ability to travel, significant distance with no carbon coming out of the tailpipe, the growth of alternative fuel vehicles (AFV) registrations is only likely to accelerate.
What does this mean for your fleet?
With a large proportion of all electric vehicle registrations being attributed to fleets, it’s clear that a growing number of organisations are making the switch to cleaner forms of transport.
If you are considering how AFVs could work for your business, CLM has developed a guide that will give you a great starting point in formulating your strategy and determining how the fleet will evolve as part of the ‘Road to Zero’ strategy. If you’d like a copy or to discuss how to go about developing your fleet for the future, fill in the form at the bottom of this article and we’ll be in touch.
Here are a few tips to help on your Road to Zero journey
Be clear on your objectives
Spending some time at the outset to consider the key goals and what you are setting out to achieve will make it easier to assess your options along the way. Are you seeking to reduce the organisation’s carbon footprint, reduce costs, future proof your fleet policy or increase employee satisfaction with the car scheme?
Bear in mind whole life costs
The overall cost to both company and employee should be considered. Comparing petrol/diesel to electric vehicles can be complex.
Electric company cars are extremely appealing to drivers due to the zero/low company car tax rates (we have an article here if you’d like to know more about this).
However, the initial purchase price of an electric car is typically more expensive than an equivalent diesel or petrol. But then there are the in-life costs to consider such as maintenance, fuel and congestion charges which make running the EV much cheaper.
And, depending on location, there’s also the charging infrastructure to consider, along who will pay for any installation costs if needed.
Do the analysis
As well as understanding the relative acquisition and running costs, it’s important to understand the overall fleet profile in order to ensure that appropriate vehicles are provided that suit the business and driver requirements. This means understanding the mileages driven for business and private use, travel patterns, locations visited, etc.
Understand the options
With new electric vehicles coming to market on a regular basis, bringing improved battery capacity and increased range, options are available to suit most. In setting out a new fleet policy, make sure you are up to date with the available options.
Check out available grants
To help overcome the higher cost of many electric vehicles relative to a comparable traditional fuel vehicle, the government introduced a plug-in grant available on a range of eligible EVs including cars, vans, motorcycles, mopeds, taxis and even large trucks.
The maximum grant available for new electric cars is £3,000 while the maximum for a new electric van is £8,000, taxis can get up to £7,500 and motorbikes up to £1,500. More information on this is available at the Go Ultra Low website.
If you lease your company vehicles the leasing company will reflect the value of the grant in the rental figure. Or if you buy outright, the value of the grant will be reflected by the dealer at the point of purchase.
Workplace Charging Scheme
Businesses, charities and the wider public sector can get grants of up to £350 per socket for installing each charging point at a workplace, up to a maximum of 40.
There are some eligibility criteria which can be read here.
The people factor
Don’t get too fixated on just the cost analysis and vehicle specifications. For such an important business change, it’s vital to involve employees. Many will be keen to see potential savings in benefit-in-kind tax or be enthusiastic towards reducing emissions and improving their and the organisation’s environmental impact.
Some of these advocates, may be amongst the driver population for which, due to their circumstances or role, an electric vehicle doesn’t yet work.
Others may feel reluctant to change and view the introduction of electric vehicles negatively.
Work with the HR department if you have one and find ways to engage and involve employees on the journey.
Don’t put it off
Whilst it might not be the right time to move everyone to an EV immediately, do start the thinking and planning. With the UK Government bringing forward the date banning new petrol and diesel vehicle sales, there’s a need get EV ready now.
Your Road to Zero Strategy
CLM can help you to understand the multiple factors that need to be considered as inputs to your strategy, and support with detailed data analysis.
Get in touch to discuss your fleet policy or get your Road to Zero Strategy discussion guide – simply fill in your details below and we’ll be in touch shortly.