THE countdown has started to the end of the fossil fuel era in the UK, with the government planning to ban the sale of new petrol and diesel cars and vans by 2030, followed by hybrids in 2035.
Get your fleet prepared to stub out smoking tailpipes with these simple steps for a plug-in future.
Get The Timing Right
SMEs can refer to an official roadmap to plan for the ban on the sale of new petrol and diesel cars and vans.
It’s important to review this timeline, as it directly affects fleet acquisition plans. Under the current proposals, you will still be able to lease new petrol and diesel cars and vans up until 2030 and then run them over a normal cycle, but any replacements beyond that date must be plug-in variants.
Ideally, the government wants to see more rapid change among SME fleets. New regulations for road vehicles will be published in 2024 to accelerate change, while £582 million will be invested in plug-in car grants to reduce the price of EVs until at least 2023.
The government is also providing tax relief on electric cars, with VED discounts and favourable company car tax rates for zero emission vehicles until at least 2025.
So far this year, nearly one in seven cars sold came with a plug and there are now over 500,000 zero and ultra-low emission vehicles on UK roads.
The plug-in van grant will continue to provide funding of 35% of the purchase price for eligible LCVs up to £3,000 for vans weighing less than 2.5 tonnes, and up to £6,000 for vans between 2.5 and 3.5 tonnes. Vans must emit less than 50g/km of CO2 and travel at least 60 miles without any emissions to be eligible.
This year, officials will also review the Category B van derogation, which allows drivers with a Category B (car) driving licence (who have undergone at least 5 hours of mandatory training) to drive alternatively fuelled commercial vehicles up to 4.25 tonnes.
There will also be a major drive to install charge points, with six rapid charge points at every motorway service area by 2023.
The 2035 delivery plan is part of a broader strategy to decarbonise all modes of transport by 2050.
Take Your Measurements
There is an old saying in fleet that “you can only manage what you can measure”. Data is the foundation of effective fleet management that will provide the detail needed to deliver the right changes at the right time.
SMEs need to obtain a wide range of data on their current vehicles that they can then use to identify which cars and vans are suitable for electrification and the financial benefits, if any, of making changes.
This also highlights vehicles that are currently deemed unsuitable for replacement by plug-in technology, so managers can discuss options.
The initial fleet assessment covers two key areas – what vehicles cost and how they are used.
Cost is based around the Whole Life Cost of each vehicle, which covers:
- Acquisition or funding costs
- Residual values (or recharges, if leased)
- Fuel costs
- Servicing
- Maintenance
- Repair
- Vehicle tax
- Driver tax
- National Insurance Contributions
- Insurance
- Tolls
- Risk management (e.g. driver training, dashcam, tracking etc)
It is important to be consistent and thorough in pulling together these figures, which can be used to benchmark vehicles in different ways, such as cost per mile, cost per month, or cost per replacement cycle.
The second measurement looks at how each vehicle is used, covering:
- Mileage patterns (daily/weekly/monthly)
- Locations visited (including when not in use)
- Average time used per day
- Luggage, cargo, or passenger requirements
- Ancillary equipment
By establishing this benchmark, a company will be able to draw its own roadmap for change.
The process will identify vehicles that have suitable usage patterns to switch to plug-in vehicles, while the whole life cost analysis allows SMEs to have a standardised way of comparing costs once all spending is considered.
This approach prevents problems caused by a focus on individual areas of spending, such as leasing rate, that could lead to more expensive vehicles being rejected even though they are cheaper overall.
For example, Class 1A National Insurance contributions could be just £7 per month for a premium electric vehicle, but around £100 a month for a ‘cheaper’ petrol or diesel rival based just on its headline lease rental rate.
By mapping vehicle use, mileage patterns can be benchmarked against electric vehicle range to identify charging requirements, including the cost of home charging. Usage can also be compared to proposed low-emission zones, as plug-in vehicles may avoid tolls or be given priority access.
Plug Into Your Network
There is a growing list of fleets that are already well on their way to becoming emission free and many are more than willing to share their success stories.
There are lots of resources available to help you connect, from FleetandLeasing.com updates to industry associations, including the Association of Fleet Professionals, which has launched a series of EV transition training courses.
Specialist groups include the EV100, a global initiative bringing together companies committed to switching their fleets to electric vehicles and installing charging infrastructure for employees and customers by 2030. LeasePlan, for example, is a member of EV100 and is committed to ensuring its managed fleet is fully electric by 2030.
Most local authorities now offer support for companies, including guidance on how to obtain grants, while organisations such as the Federation of Small Businesses have a sustainability hub offering advice and information to companies.
Last but not least are suppliers, who are driving the switch to plug-in vehicles, particularly manufacturers, leasing companies and leasing brokers.
They have lots of hands-on experience of overcoming hurdles and most are willing to provide their insights as part of building good customer relationships.
They can help with areas of focus, including sourcing the right vehicle, building adequate charging infrastructure, and managing maintenance, breakdown or accidents.
Organisations such as The Energy Saving Trust can also provide advice on everything from funding to eco driving skills.
Increase Your Green Credentials
Recent research by LeasePlan shows almost one-third of fleet managers feel they don’t have the right level of expertise to advise on electric vehicles.
The survey of 200 fleets found nearly one-quarter felt they would benefit from further training in plug-in vehicles, even though half already had EVs on the fleet.
With drivers asking for more advice, managers need to gain personal experience of operating EVs so their everyday experience can help those around them.
Where possible, take part in drive days, hire electric vehicles for short periods, or request test drives from dealers and leasing providers.
The more exposure you have, the more you will learn, and this can be used to brief drivers and senior managers about electric vehicle options.
In addition to traditional sources, SMEs can opt for government funded services, such as the Electric Vehicle Experience Centre in Milton Keynes.
It provides a range of EVs, currently from Audi, Renault, Vauxhall, and Volkswagen, that can be taken for a short test drive or hired for up to a week at a reduced rate.
Van manufacturers and leasing companies will be able to support requests for commercial vehicle test drives, which will need to be assessed for capabilities including driving range with a payload.
Among the key driver questions you may need to answer are:
- What is the best electric car?
- What is the best electric van?
- Are electric vehicles any good?
- Is an electric car right for me?
- Can I charge an electric car at home?
Get Training - EVs Are Different
For every SME fleet, transition will require training.
Managers will need guidance on how to effectively run a plug-in fleet, from sourcing vehicles and suppliers to managing infrastructure, servicing, breakdowns, inevitable incidents and so on.
Ideally, drivers should be trained too, because EVs provide a very different driving experience.
Some changes are relatively simple, such as EVs being automatic rather than the manuals most drivers are used to.
Drivers switching from manual gearboxes to automatics often press the brake with their left foot at first, as though it were the clutch. As the car brakes, they press harder to declutch, slamming on the brakes and risking a collision with vehicles behind.
Other changes include:
- Start-up/switch off – which happens without the familiar sound of an engine
- Instrumentation – including range and battery charge levels
- Switches – particularly gears and parking brake, which can be just buttons or a switch on some models
- Regenerative braking – which can often be tuned to driver preferences, including one-pedal driving
- Acceleration – which can be much faster than a previous petrol or diesel car, especially from low speeds
- Sound – electric cars may be less noticeable in urban areas without engine noise; care needs to be taken in car parks, for example – pedestrians might not realise the car is there
- Charging – the experience is different to fossil refuelling and can even differ between plug-in points
- Driving tips – how to preserve range, what can you expect on motorways
Although drivers may be reluctant to be trained, even a short briefing could avoid potential incidents or problems.
Furthermore, training will also help employees get the best out of their cars when it comes to maximising range and minimising charging stops.
How LeasePlan Can Help Your SME Fleet Transition To EVs
At LeasePlan, we have the knowledge and experience you need to help you transition to EVs. We have been supporting business fleets for over 50 years and offering electric vehicles for more than a decade.
We manage 1.8 million cars and vans across 29 countries and are committed to moving our entire fleet to net zero-emissions by 2030.
You can see all our latest EV deals on our website – and our experts have created a free online tool that can help you decide if an electric car or van is right for you.
Get Started On Your SME Fleet Transition To Electric
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