The electric vehicle (EV) revolution is well underway, with battery electric vehicles (BEVs) making significant strides in the automotive market. According to the Society of Motor Manufacturers and Traders (SMMT), BEVs accounted for 32.9% of total new car registrations in December 2022, contributing to a yearly share of 16.6%. Although we're on the right track, there's still much to do before achieving the government's 2030 target of transitioning to alternative fuels. Rapid advancements in technology, increasing environmental awareness and government incentives have contributed to the rise in EV adoption. The UK government has pledged to ban the sale of new petrol and diesel cars by 2030, spurring investments in charging infrastructure and promoting the development of alternative fuels. As a result, businesses are now increasingly considering EVs as a viable option for their fleets. EV purchase costs and available options Despite the initial high purchase cost of EVs, government grants and tax incentives can in some circumstances make them more affordable for both businesses and individual 16 AFTERMARKET SEPTEMBER 2023 BUSINESS www.aftermarketonline.net The move to EVs means both opportunities and challenges for fleets, as well as garages buyers. Additionally, the rise of vehicle subscription services provides a flexible alternative to traditional car ownership. These services typically offer a flat monthly fee that covers various expenses, including insurance, maintenance, and charging. This allows businesses to flex their fleet size and composition as needed, reducing the risks associated with long-term investments. Operating costs Operating an EV fleet comes with its own set of challenges, including the impact of rising energy prices, the Ultra Low Emission Zone (ULEZ) implications, and planned changes to EV Vehicle Excise Duty (VED), which is a vehicle tax based on the CO2 tailpipe emissions of your vehicle. With energy prices on the rise, it's crucial for businesses to consider the overall operating costs of EVs. However, reduced maintenance needs and fuel savings may offset these costs in the long run. We're also beginning to see significant changes to the EV recharge infrastructure as it's recently been reported that for the first time off-peak ultra-rapid charging is cheaper per mile than petrol, during certain periods of the day. ULEZ expansion and stricter emissions regulations THE REALITY OF EV TAKE-UP BY James Starling, Director of Business Services at the AA
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