29 March 2021
It’s been a great 150 years - from the Ford Model T to the Morris Minor to the Ford Mondeo - but fossil fuel-driven cars are finally being phased out on British roads.
From 2030 onwards no new vehicles that use petrol or diesel as fuel will be sold in the UK, part of a wider initiative to make the UK carbon-neutral by 2050.
The initiative is part of a ‘Green Industrial Revolution’ that will also include increased use of wind, nuclear and hydrogen power, zero-emissions public transport, greater use of walking and cycling, energy-efficient homes and carbon capture. The scheme will be backed by billions in investment, including £582 million in grants to buy zero or ultra-low emissions vehicles.
Looking deeper into the legislation, we can find several key changes that may impact our customers in the short term. The government’s Road to Zero report outlines changes, including:
- “Extending the Clean Vehicle Retrofit Accreditation Scheme (CVRAS) beyond buses, coaches and HGVs to include vans and black cabs.” This means that if your fleet includes older vehicles that haven’t been fitted with emissions-reducing technology they will have to be upgraded or replaced.
- Increasing the supply of alternative fuels, making them more viable for company fleets.
- Supporting a market for used EV vehicles - something that could help budget-conscious companies to go electric.
The legislation around electric vehicles (EVs) and reducing emissions is complex and subject to change, so it is vital that your company stay on top of the latest developments that are relevant to you.
When should you make the switch?
If your company operates vehicles and plans to be around for the next decade then it’s very likely that you will need to switch to an all-electric fleet, but the question is when.
While the technology in internal combustion engines has remained largely static, EVs in 2030 are likely to be more efficient than those available today. More infrastructure is also being built, so while in some parts of the country it might be difficult to find charging stations, after the government has spent £1.3 billion on rolling them out this situation should have improved significantly.
Although the switch to electric is two or three vehicle replacement cycles off and electric vehicle infrastructure isn’t fully developed, Allstar has found that amongst our corporate customers 87% expect to have one third of their fleets electrified within the next three years. Of those companies surveyed that already have EVs in their fleet, more than 50% expect half of their fleet to be electric in three year’s time. For those without any EVs that number drops to 15%.
All-electric fleets are ready to roll
Clearly, for many companies, EVs have reached the point where they are viable for a whole range of tasks, whether they are serving as company cars, delivery vans or HGVs. However, the fact that adoption is not total shows that companies are still deciding which vehicles to replace with EVs on a case-by-case basis. One factor that might change minds is the low-emission vehicle grant, which allows car buyers to get a substantial reduction in the price of a range of select EVs. Dealers themselves will price in this grant, so there is no application process or paperwork for buyers.
Coming out of lockdown, many companies won’t have ready cash to replace their entire fleets, so this is understandable, but with the economy normalising over the next year we may see increased investment in electric vehicles. Hopefully, this will lead to many fully electric fleets across all sector’s of UK industry long before 2030.
This is the first part of a five-part series on electric vehicles. Check back next week for our next entry, which looks at working out the cost of electric vehicles.
Download your copy of our 5 Steps to an Alternative Fuel Fleet guide here.
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