Within 15 years, possibly sooner, sales of new petrol and diesel cars will be banned in the UK. Over the next few years, the make up of the UK fleet is going to change dramatically.
While penetration of electric vehicles is low single digit, it is growing fast. Government decarbonisation policy and incentives are starting to accelerate the transition. Last year battery electric vehicles registrations made up 1.6 per cent of the new car market, according to data compiled by The Society of Motor Manufacturers and Traders. This year, EV market share was predicted to be 4.6 per cent – but has already surpassed that. Accelerated growth can be expected from here on in. While early adopters put the first 100,000 BEVs on UK roads, company car fleets are now driving growth, largely due to tax changes introduced in April. Changes to Benefit In Kind (BIK) rates mean that company car drivers this year can essentially get a free car if they opt for an electric vehicle, with BIK set at 0 per cent. That rises to 1 per cent next financial year and just 2 per cent after that until April 2025.
Meanwhile, 100 per cent capital allowances on both electric vehicles and charging infrastructure, alongside plug in car and van grants, make EVs an extremely attractive choice for company car fleets. Simultaneously carmakers, despite Covid disruption, are ramping up in earnest. Some 33 new battery electric vehicle models are expected from European carmakers in 2020, with more than 100 BEV models on the market by 2022. All of these cars and drivers will require charging infrastructure – to charge at home, at work, at different destinations and on the
go. Businesses of all types will be expected to meet that need. Given the economic turmoil of the last few months, it is understandable that some businesses will prioritise cash conservation. But in an uncertain world, what is certain is that the shift to EVs is underway.
Businesses that prepare now have the opportunity to secure incentives, ensure that they can access the power grid and help to enable the transition to a decarbonised economy – without having to worry about being left behind. The businesses interviewed for this report
have taken that approach. We hope their insight and experience helps inform your own EV journey.
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