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Cut your costs with an EV

With over 45 models on the market to choose from, the number of SME’s acquiring EVs is increasing. According to the Society of Motor Manufacturers and Traders there was a 21% increase in the number of registrations for electric vehicles in 2018 in the UK.
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26 March 2019

SMEs can reap rewards by switching  petrol and diesel cars to electric vehicles (EV’s), according to Prism Solutions co-founder and Chief Executive Richard Alexander.

With over 45 models on the market to choose from, the number of SME’s acquiring EVs is increasing. According to the Society of Motor Manufacturers and Traders there was a 21% increase in the number of registrations for electric vehicles in 2018 in the UK.

Prism has just purchased five VW Golf electric vehicles for its fleet. Alexander said: “At only 2p per mile for an electric vehicle, compared to 10-12p for their petrol or diesel counterparts, the business case is hard to ignore.”

 Because electric cars are made of far fewer moving mechanical parts, they have lower service, maintenance and repair (SMR) costs – as much as 70% less than petrol or diesel-powered alternatives.

Almost 435,000 SMEs in Britain, according to Go Ultra Low, could currently save up to £1,440 a year per vehicle by switching to an electric car.

There is also a long list of tax benefits and incentives that are available to both drivers and businesses.

This includes exemption from London’s Congestion and T-Charges, lower benefit-in-kind (BIK) tax rates for company cars, Vehicle Excise Duty (VED) on 100% electric cars under £40,000, as well as capital allowances and salary sacrifice regimes.

Gary David Smith, fellow co-founder of Prism, said: “Employee sentiment is very positive and drivers are happy to commit personally in order to be able to drive them. One Prism employee has made a net saving of £200 per month via a combination of car tax and fuel, which grossed up probably amounts to a real pay rise”.

The biggest barrier to adoption of EV’s amongst the SME community in the UK is the perceived problem with charge point infrastructure. According to ChargeMaster, around 60% of EV charging takes place at home.

There are currently over 16,500 public charge point connectors in the UK, while 96% of motorway service stations now have rapid charge points, which can charge cars to 80% power in as little as 30 minutes.

Presently, EV charging systems across the UK are still not standardised. Charging speeds, the available chargers, wattage, connections and availability of charging ports all vary significantly.

Hitachi has the job of bringing the data from all the systems together and to spot the gaps and identify the bottlenecks in the electricity network.

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Chris Wright

Chris Wright

Chris Wright has been covering the automotive industry nationally and internationally for 30 years. Following spells with consumer titles he became News Editor of Automotive Management (AM), Editor of Automotive International, International Editor for Detroit-based Automotive News, and Editor of Dealer Update. He has also co-authored several FT Management Reports and contributes regularly to Justauto.com

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