In January, UPS announced plans to add 10,000 BEV trucks for a fleet pilot beginning this year after purchasing a minority stake in EV-maker Arrival. In its quest to be carbon neutral by 2040, online retailer Amazon recently ordered 100,000 electric delivery vans from electric start-up Rivian.
A 2018 study by Forbes found that as battery costs decline, the unsubsidised costs of eFleets will be cheaper than diesel in just a few short years, whilst Lease Plans 2019 Pricing index found an EV is cost-competitive compared to driving an ICE vehicle (defined as the average between diesel and petrol) in Norway (same price) and the Netherlands (1% more expensive).
In the UK and Denmark, cost competitiveness for leased EVs is in reach.
By introducing an electric fleet, companies can expect to reduce net emissions and save on operational costs by up to 70% per mile. But how can your company ensure gains from the electric revolution?
Electric cars are exempt from Vehicle Excise Duty – otherwise known as road tax – and for the 2020/21 financial year, beginning 6 April 2020, they’re exempt from company-car tax, too. As a company, this means you can save significantly if your employees decide to move to electric.
They are incentivised to do so, not only by the fact that many EVs now offer a smoother ride and all-round better driver experience but also because the Benefit in Kind (BiK) tax rate they pay on the vehicle will make a huge improvement to their monthly wage.
EVs are far more efficient at turning energy into motion and are only getting better. If you compare the cost per mile of a Tesla 3 to a brand-new diesel BMW 5 Series Saloon you see over 50% savings at 4.2p per mile vs 11.5p.
Say you used these vehicles just to commute from London to Cambridge each day, spread this over a year and it’s a saving of £1,708 in fuel alone.
Another factor in favour of electric vehicles is that they are far more reliable. The drivetrain in an Internal Combustion Engine (ICE) vehicle contains 2,000+ moving parts typically, whereas the drivetrain in an EV contains around 20. In addition to the engine, the use of regenerative braking means that brake pads last far longer than in ICE vehicles.
These two facts combined not only makes the maintenance of EVs far less regular and therefore far cheaper to carry out, but also means that EVs retain their value far better than traditional vehicles.
Home/Work/On the Road Charging
We work with leasing companies to ensure that the process of moving electric is easy, providing workplace and home chargers for your employees. At work, this means that your employees can always leave with a full battery with the lowest cost to you.
At home, this means cheap electricity, the cost of which can be automatically reimbursed, saving you not only money in charging, but in the logistics of organising it too, as these costs, and that of the charging stations, are included within the lease agreement.
Charging providers such as ChargePoint, also have extensive public charging networks and open roaming agreements, meaning that the app of the card used for charging at home acts as a fuel card, giving you access to over 100,000 places to charge across Europe.
To conclude, put together these savings across your fleet could be cutting the running costs of your company fleet in half.
Beyond the clear monetary benefits, the green corporate social responsibility boost was seen by companies, both from their customers and employees can have huge effects on the reputation of a business.