AS THE 2030 ban on the sale of new petrol and diesel cars and vans looms, research has found that almost a third of fleets (29%) are falling behind in the EV transition and aren’t on track to make the switch.
While research has found that the transition for many fleets is underway, 29% of businesses state that half or less of their company car fleets will be electric vehicles (EVs) by 2027. These organisations are at risk of a sudden and significant transition to electric when the 2030 ban on internal combustion engines (ICE) comes in just a few years later. This could leave them struggling with driver adoption and acceptance, adapting their existing policies to include EVs, and most significantly, workplace charging infrastructure and public charging strategies.
The fleet industry accounts for around 1.5 million cars and vans on the road at any one time, and replacing these with EVs will significantly help towards the Government target of 23 million light-duty vehicles to be battery-powered by 2032.
Fleets play a crucial role in the journey to net-zero, with the transport sector accounting for over 40% of the UK’s carbon emissions. By driving EV adoption across their fleet, businesses can significantly reduce their scope 1 greenhouse gas emissions. Organisations that further encourage EV adoption across their wider business (by offering a Salary Sacrifice scheme to their employees for example) and within their supply chain, can achieve emission reductions in Scope 3 as well. In 2021, fleet and business registrations accounted for more than half of new car orders, and the BRVLA has estimated that 10.5 million vehicles are part of the grey fleet.
Businesses lagging behind in the adoption of EVs may find themselves running into difficulties ahead of the 2030 ban and in the years that follow. A planned and gradual transition is the best way to resolve the unique challenges individual businesses will face and avoid significant operational disruption.
Emma Loveday, Senior Fleet Consultant at VWFS Fleet, says: “While it’s great to see that many organisations are making real progress with their EV transition, there’s a concerning number of businesses that are at risk of being left behind that we need to support.”
“Organisations need to approach EV transition with a strategy and plan in place. And ensure all relevant stakeholders, not just Fleet Managers, understand and are committed to the transition. Undertaking a sudden switch can lead to problems with vehicle utilisation if the charging strategy isn’t thoroughly thought-out or issues with driver engagement and acceptance if they haven’t been suitably supported with a switch to EVs.”
“There are various reasons why businesses are hesitant to transition at pace now. 19% said EVs are too expensive for them to acquire, and many flagged their uncertainty around the UK’s charging infrastructure.”
“While transitioning company cars can be seen as the ‘easier’ part of the vehicle fleet to transition, organisations with mixed, or significant commercial vehicle fleets, need to start focusing their attention on transitioning their light-duty vehicles to electric as well. With a standard 4 year/ 48 month replacement cycle, there are typically only two to three vehicle replacement cycles left before the 2030 ban comes into place. And with the ongoing issues with vehicle supply and lead times, this timeline is going to be further compounded for Fleets.”
“Utilising consultancy can help organisations with their roadmap for EV transition – including key considerations such as driver education and awareness, as well as charging strategies and maximising electric vehicle utilisation. VWFS offer a multitude of resources and tools that can help fleet decision-makers understand the options and see how the transition can benefit their business, their drivers and the environment.”
“With the 2030 ban on new petrol and diesel cars in sight, now is the time for businesses to start at pace the transition to electric to avoid being left behind.”
