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It’s somewhat unequivocal that electric cars and business leasing go hand in hand - there are great tax advantages for the company and the driver, not to mention the go-green initiatives which many corporates are having to pursue in the road to net-zero.
But EVs are not without obligation and investment; there are corresponding undertakings which need to be taken on board by both the company (i.e. the directors and fleet managers) plus the employees (the actual drivers). A clear and methodical approach has to some extent been missed by many of those involved in EV procurement.
Much of the focus has been on price points or cheap taglines around range, go-green initiatives and net zero obligations. While these are important aspects, it is fair to say that there is more to consider when you are beginning to transfer your fleet from petrol/diesel to electric.
Getting the transition right is so important, as what we ideally want to happen is for the end users to enjoy the zero-emission automotive process and effectively recommend and praise their new vehicles. What we need to avoid is drivers moving into the BEVs and then complaining about range, charging, performance and general experience, as this soon creates an anti-EV culture.
Much of this arose around Christmas 2022, when a number of news outlets and media published stories surrounding cold-weather and lack of charge point tech. For many manufacturers, this was not welcome news, particularly when many have made the mistake of either over-pricing their EV product or who have been launching and promoting more luxury and prestige EVs only. The UK Government has re-confirmed (in March 2023) that the transition towards EV solutions is happening and the targets for 2030 - 2035 will remain in place.
This effectively means more investment and more product in all-electric format, with company cars and salary sacrifice being the short to medium term backbone for this ambition.
To showcase just what manufacturers have to do in order to remain compliant with Governmental ambitions, the team at mha have put together a useful overview of how the ZEV mandate will impact the various manufacturers based on their market share and their EV sales. To be clear, by “electric” this means Battery Electric Vehicle (BEV or EV or Pure EV) and does not include hybrid tech.
April 2023 Overview of the ZEV Mandate and Car Manufacturers in the UK
As at April, there is a heartening amount of progress in the UK, with more and more businesses - SME and Corporate - making the move to pure EV. But EV-readiness is still something which is on the agenda - how should a car selection happen? What are the key things you need to know? Moving away from combustion has not been without pain; many fleet selections were made on the basis of some combined MPG stats, P11d values and specification. Moving forwards there needs to be more maturity and depth about how the process will take place. With an EV, you will require far more perspective, with metrics to review like:
And don’t worry, as part of our commitment to any business leasing a new electric car, both the decision makers and the drivers will receive Free of Charge, our new EVC™ to clearly explain all of this - see below:
Well, there is no obligation by law but as part of achieving the ZEV Mandate, the Government has pledged more support to the infrastructure aspect of the industry, highlighting that driver confidence is key to making the shift; Powering Up Britain is a part of this with the confirmation of nearly £400m to provide a robust charging network.
But this isn’t just rhetoric and hot air. One of our key partners, Raw Charging, is working on exactly this endeavour, and are using their own funds to bring charge points to key locations throughout the UK. Only today (17 April 2023) the group announced a 3-year scheme to develop and install EV charging at key National Trust sites , with £12m due to be invested. This will means a series of AC charging for slower ½ - full day sessions coupled with DC facilities for more rapid top-up sessions. Key infrastructure at key locations = receipt for success.
And Raw Charging are not just updating retail and leisure destinations, they are also helping employers to facilitate fleet electrification with a series of robust EV charging solutions. AC, or slower 7 / 11 / 22 kWh, charging solutions are far more cost-effective than DC, or rapid charge solutions.
As you will note on the Raw Charging website, there are a series of free-standing or wall-mounted options to consider - which can facilitate the needs of your drivers. With many EVs now capable of 11kW AC charging, most will be able to fully-charge in just 4-6 hours, meaning you can operate morning and afternoon sessions for ensuring fairness across the driver network.
Many of your employees will not have charge point facilities at home, so this investment is well worth it for assisting those types of drivers. And, if required, you can simply pass on the cost of charging to your employee. For a business with more than 2 EVs on fleet, and which regularly park on premises, the e-car team really do suggest you make some investment as part of future-proofing your infrastructure.
In terms of the car shown, the Renault ZOE HATCHBACK SPECIAL EDITION 100kW GT R135 50kWh Rapid Charge 5dr Auto Pure Electric Vehicle, this was based on the following configuration:
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