The government posted its plan for the next 10 years which included its plans for fleet transitions towards electric vehicles. They have pledged to turn their own fleet to zero emissions by 2027 as part of the ZEV Pledge initiative by The Climate Group.
Stats from The Climate Group state that globally 24% of the vehicles on the road are made up from fleets with 56% of the road emissions contributed from this.
Goals set by the government are to increase the sale of zero emission vehicles by more than tenfold.
Fleet owners need to start planning and taking the lead in driving this conversion. Lead times on cars are getting longer due to parts shortages and leases need to be planned further in advance than before.
Benefits of an Electric Fleet
There are many benefits to business owners for switching to an electric fleet, such as: –
- Reduced Tax Labilities
- No more congestion charges
- Possible grants
- Reduced running costs
- Lower maintenance costs
- Capital Allowances
- Higher retained value
Of course, the infrastructure is a big part in this and the availability of charging points. Consideration will need to be made into these at your business premises and even your employee’s homes for those who may take vehicles home in an evening and weekend.
Don’t Forget your Fleet Insurance
Other things to consider is your fleet insurance. With electric fleets still a relatively new change in terms of insurance companies this means that not all insurers are yet comfortable with these on their policies, however this is changing with market leaders being the key to paving the way for other insurers to follow.
It is advised to involve your broker with your plans to adapt your fleet to ensure that at renewal you are placed with an insurer that is suitable for your business.