Tag: Electric Vehicles

A common myth surrounding electric vehicle fleets is that they will cost your business more than fossil fuel burning vehicles. This is the main reason why 50% of fleet managers are cautious about making the switch.

However, when we break down the cost of electric vehicle fleets, it becomes clear that this caution is not completely justified.

What is the true cost of operating electric vehicles?

The ‘on-the-road price’ is a term commonly used to describe the true cost of an electric vehicle. This comprises not only the list price, but also the cost of other factors such as fuel, insurance, and road tax. Essentially, it’s the real-world cost of buying the vehicle and being able to legally drive it, which is always higher than the list price of an individual vehicle.

Whilst it’s true that the initial cost of purchasing an electric vehicle could be steeper than buying a new diesel vehicle, this shouldn’t put fleet managers off. Once you’re managing electric vehicle fleets, you’ll realise the extra cost was worth it in the long run.

Let’s break down the key costs associated with electric fleet vehicles. While there are a range of different vehicles available in market today based on engine-size, carrying capacity, and business purpose, we’ll use a Citroen C4 as an example to illustrate costs.

The cost of purchasing an electric car in the UK

Based on 2021 data, the diesel version of a Citroen C4 has an on-the-road price of £26,040.

This vehicle’s electric counterpart, the e-C4, has an on the road price of £29,680.

Consequently, the EV model costs around 12% more than a diesel counterpart, which in turn is likely to cost slightly more than a petrol equivalent.

Typically, electric cars tend to RRP from around £28,000 – with no cap as of yet and some lower-priced exceptions to the rule.

The cost per mile of an electric car

You’ll find the cost per mile of an electric car will vary depending on the make and model of the vehicles and generally a better measurement of cost for EV journeys is taken at the charge point.

Mile per kilowatt-hour (MPkWh) is the amount of miles you’ll get from an hour of charge. Similar to a petrol or diesel vehicle, the more charge or “fuel” your electric car can hold then the further it can take you. Like the cost of miles to the gallon of fuel, MPkWh price will vary depending on where you fill up.

How much does it cost to charge an electric car?

Different recharge points may have different costs, much like how different petrol stations will have varying prices for traditional fuel, and charging at home is cheaper than public charging.

For the average EV with a 60kWh battery and a range of 200 miles, you’ll find that charging at home will cost approximately £15 for a full charge, and charging at charge points at petrol stations typically cost around the £20-25 mark for a full charge.

Often places like supermarkets and other public locations such as car parks offer charging that is free to use. If you are looking to save money on trips, locating these free charging points can help.

Electric car charging installation cost

If you have off street parking then installing a charging point at home is essential if you are making the switch to EV, and for businesses wanting to invest in sustainable infrastructure then charging points are a great idea.

Many companies will combine the cost of a charging and the cost of installing it, so this is important to know when picking your provider. For both home charging points and business charging points there are government grants available in the UK to help cover a chunk of the costs.

For businesses wanting to make EV charging more accessible on work premises or looking to grow their EV fleets, read more about the Workplace Charging Scheme here.

The cost of an electric car battery

Unfortunately, electric car batteries are very costly with the cheaper ones priced at around £1500 and the most expensive ones priced at around £10,500. The cost of a replacement EV battery will of course depend on the make and model of vehicle. This cost also doesn’t include installation costs.

These batteries are so expensive because of high demand but only a small amount of availability. 6 companies produced 85% of the lithium-ion batteries used in electric cars in the latter half of 2020.

Cost of running a petrol car versus an electric car in the UK

Let’s look at the Citroen C4 as an example.

The diesel version has an on-the-road price of £26,040.

This vehicle’s electric counterpart, the e-C4, has an on the road price of £29,680.

This initial extra cost of over £3,000 per vehicle is what makes fleet managers shake their heads. After all, when purchasing multiple of these electric vehicles, the extra cost of constructing your fleet could seriously add up.

The total cost ownership of electric vehicle fleets

However, once you’ve got your electric vehicles on the road, you’re going to start saving. Let’s look at the Citroen C4 example again.

Assuming the cost of diesel is 126.5p per litre (an average UK Price in March 2021), it would cost £2.85 each day for a 25 mile journey. Over a year, this journey would cost £1,040.

The cost of doing the same daily journey in the electric C4 is proof that cost of running electric vehicles is not something fleet managers should be worried about. The daily cost of the 25 mile journey would be £1.10. Over the year, that journey would cost £402.

That’s a saving of £638 per year, just by using electric instead of diesel.

Since electric vehicles do not emit harmful CO2, they are exempt from road tax. This small saving will also add up over time.

The more mileage your electric vehicles do, the more extreme the savings can be. Having 3 Citroen e-C4s in your fleet doing 50 miles a day for 3 years will completely negate the extra cost of the initial purchase of these vehicles, just from savings on fuel costs.

Of course, the costs will vary depending on which vehicles you use, but the e-C4 is a perfect example of the types of savings you could be benefitting from.

Government grants making EV purchasing easier

The UK government also offers a grant to assist in the purchase of low emissions vehicles.

This is part of the government’s 10-point plan for a “green industrial revolution”, which includes the 2030 ban on the production and sale of new petrol and diesel vehicles.

The percentage of the grant offered depends on the vehicle. For cars, the grant will pay for 35% of the overall price up to a maximum of £2,500.  The car must cost less than £35,000 for it to be eligible.

For large vans, the grant will pay for 35% of the overall price up to a maximum of £6,000.

It’s unlikely the government will offer these grants forever, so it might be worth considering making the transition to EVs now whilst they are still available.

How else can I save money with electric vehicles?

If you are running fleets of electric vehicles, you should be using a fuel card to optimise the benefits. With the right card, you could see cheaper charging costs and more convenience in terms of where you can charge your vehicles. Many fuel cards offer competitive prices on both electric and fuel, meaning you can slowly make the transition to keep up with the industry-wide switch to low emission vehicles.

To find out more about how a fuel card can help you, get in touch with our expert team. They’ll find the best option for your fleet.

We’re seeing more and more electric vans go on sale as we draw closer to the 2030 ban on diesel and petrol van production.

Petrol and diesel vans being used in cities with low emissions zones such as London and Glasgow risk having to pay high charges for operating in these areas. Businesses should consider whether it’s time to make the change to electric vans before these charges start to add up.

What does the electric van market look like in 2021?

Last year saw many businesses join the Global Action Plan Clean Van Commitment. Companies like Tesco and Network Rail are pledging to transition to zero-emission fleets of vans by 2028 as a result of this commitment.

The bulk of the market last year was taken up by the large fleet sector. Pressure from business heads to reduce emissions has already led to some companies to begin making the transition.

When browsing the market, you’ll find fully electric vans on sale as well as hybrids. The Ford Transit Custom PHEV is attractive to fleet owners as its hybrid capabilities mean it still carries a high payload with less harmful emissions. The Mercedes eSprinter offers an electric alternative to one of the most popular large vans on the market.

With demand increasing for electric vans, we can expect to see newer models each year. As payload weight, charge times and possible range improves, we’ll likely see sales of electric vans increase dramatically in the next decade.

What electric vans are going on sale soon?

Peugeot e-Boxer

The electric version of the Peugeot Boxer is set be available soon, citing a release date of 2021.

Two batteries are available with this vehicle. The larger 70kWh battery provides drivers with an impressive range of 211 miles.

To keep cost and weight down, the smaller battery gives drivers 37kWh of power and a range of 124 miles.

When these electric vans go on sale, they will be available as a panel van, window van or chassis cab. Peugeot claim that the panel vans will support payloads of up to 1,200kg. The maximum weights for the over variants have not been released yet.

Toyota Proace City Electric

This small van is set to go on sale in the UK towards the end of 2021.

We don’t have many statistics for this vehicle yet. However, we know it uses a 50kWh battery, so estimates suggest the Proace City Electric will have a range of around 200 miles considering its size.

A slightly larger version of this vehicle has also been announced, but few details are known so far.

More details about this van should become available closer to its release.

Citroen e-Berlingo Electric MPV

The electric version of the Berlingo MPV is set to release between October and December of 2021.

With a water cooled lithium ion battery supplying 50kWh of power, Citroen claim the van will have a range of 170 miles. They also state that with 100Kw rapid charging, the e-Berlingo could be recharged to 80% in half an hour.

This “van based people carrier” will seat 7 people, making this a great option for taxi firms and other transport companies.

Ford E Transit

This first completely electric version of the iconic Ford Transit is one of the many vans going on sale in 2022.

With 25 different variants, the performance of this van is bound to vary depending on size and weight. The 67kHw battery is predicted to enable a range of up to 217, which is impressive for a van of this size. The eco drive mode also promises to extend the range by an additional 8%.

Ford have promised that the carrying capabilities of this Transit have not been compromised during the change to electric. The payload rating of the standard model is just over 1600kg.

Renault Kangoo E-Tech

Renault’s successor to the Kangoo Z.E should arrive on our roads within the next year.

This version of the Kangoo features a battery capacity of 44kWh, a 33% increase on its predecessor. With a range of 165 miles and a payload of around 700kg, this smaller van is a great option for businesses operating in built up urban areas.

Arrival

Arrival’s electric van is the most futuristic looking vehicle on this list. It remains to be seen whether this aesthetic catches on and transforms the look of the vehicles on our roads.

The manufacturer states that they have set a new standard for commercial electric vehicles. With a payload of 1975kg, this van is set to start full production towards the end of 2022.

Arrival have also stated that the components in this van are upgradeable, meaning the life of each vehicle could be extended whilst keeping up with the competition. In fact, users of this van can configure the battery to fit their requirements. The battery capacity ranges from 44kWh to 133kWh.

This van is aimed at commercial vehicle fleets. Arrival believe they will be transitioning sooner than other sectors, but have sizeable range requirements.

When will you make the change to electric?

With so many great electric vans going on sale (or already on sale), it’s time for businesses to consider when they will be making the transition.

Moving from fossil fuel burning vehicles to electric can seem daunting though. These new vehicles will change the way fleet managers run their operations. If you would like to know more about how others are managing to add electric vehicles to their fleets, get in touch with our expert team.

With concern about the environment on the rise and strict emissions targets in place to curb climate change, it is hoped electric vehicles could make a big contribution to lowering the country’s carbon footprint.

However, electric vehicle range remains a worry for some. Indeed, according to a recent survey by the AA, two of the biggest factors in putting people off making an EV purchase are lack of local charging points and being caught short on longer journeys.

Yet much of this so-called ‘range anxiety’ is likely to prove unfounded. Most fleet owners should actually find the latest EVs will have all they need to meet the needs of the majority of their drivers on a day-to-day basis.

So, how can you make the switch to greener vehicles and get more miles from your fleet? Here are a few ideas.

Choose cars with the best range

It might sound obvious, but the best way to start is by looking at which electric vehicle batteries offer the longest range straight from the forecourt.

Thanks to continuing improvement in battery technology, plenty can now go some 300 miles or more on a single charge. That means your drivers should be able to cross the country before needing to plug their vehicles back in again – and shorter trips will be a doddle.

The most well-known brand in the EV market is undoubtedly Tesla, which was pioneering in the field and usually has several models in most ‘top ten’ lists at any one time. However, every marque from Mercedes to Nissan and BMW to Jaguar now also offers its own new green vehicles.

With a range of price points available, that means there is sure to be something to suit the needs of your fleet and offer you maximum ‘juice per journey’.

To provide just a couple of examples, according to the Sunday Times’s round-up of the newest EVs, the Tesla Model S Plaid will get you a 390-mile range, while the BMW iX xDrive50 boasts 373.

You can also check out the RAC’s latest recommendations here.

Drive to optimise mileage

Once you have your electric cars, you will find that the way they are driven has the ability to increase or decrease mileage. To make the most of each charge, offer your fleet drivers these simple tips:

• Drive smoothly to reduce consumption from acceleration
• Reduce speed, as the US Department of Energy suggests a 10 mph decrease can lower energy use by 14 per cent
• Make the most of regenerative braking by leaving the function switched on and using it to slow down before you use the brake pedal
• Keep heating and air conditioning use to a minimum if possible
• Don’t carry too much weighty cargo
• Optimise routes before journeys to cover less ground

Another notable way to get greater range from electric vehicles is to stay on top of maintenance. By keeping tyres inflated to recommended levels, checking fluids and replacing air filters, a battery’s range can be extended quite significantly.

Using vehicle telematics might also be ideal in this regard, as it will ensure servicing is scheduled regularly. It can also collect data from fleets about driving and charging patterns, helping owners see where economies can be made and training improved.

Research the best ways to charge

Public

The infrastructure of public UK charging points is improving all the time, something that is essential given the ban of new petrol and diesel cars from 2030 onwards.

According to the Department for Transport, the number of public chargers for EVs has increased by nearly 500 per cent in the past five years alone. That means wherever you go, you should no longer run the risk of being caught short mid-journey.

Indeed, with more than 18,000 charging points across the UK, it means there are now twice as many as there are petrol stations. Many are also rapid chargers to provide full power in a far shorter time, something that could be a huge bonus to business drivers.

Motorists can find them easily by looking up their nearest power points via tools like Zap Map and Apple Maps if they find they’re in need of a power-up mid-journey.

Furthermore, the government has earmarked £500 million for its Project Rapid motorway charging network and £200 million for charging network expansion, so this public grid should be ample to support most business drivers going forward.

However, it is worth remembering that some public charging points offer power at a cost, whether that’s pay-as-you-go or via an electric charging card akin to a fuel card.

Home

Many business drivers have company cars that are taken home at the end of the working day, so overnight charging could be a viable option. KPMG suggests 70 to 80 per cent of fleet EVs are currently already charged at employees’ homes in this way.

It is worth remembering that off-road parking will be necessary in this case, though, as will a method of claiming back the expense.

Workplace

As EV uptake increases, more businesses might be considering having their own charging points installed within workplaces for maximum efficiency. Of course, this will incur an initial outlay, but it may prove more economical in the long run.

The government offers financial support as part of its Workplace Charging Scheme that could potentially offset the expense, while utilities providers may also provide discounts for the electricity on a subscription basis.

More guidance on electric car charging points for UK businesses is available via the Energy Saving Trust.

Mobile?

It was recently reported that the RAC is planning on introducing mobile charging services for EVs, while rentable power banks for long-distance EV drivers are another option being put forward to boost range. Although this technology may be some way off, it could be another way of decreasing any lingering range anxiety for fleets going forward.

There are many benefits of electric cars and, with some research and a little planning, more businesses could soon be making the most of them. Perhaps it’s finally time to put the myths about mileage to bed and adopt greener vehicles for your fleet now. Get in touch with our expert team and find out how you can make the change to electric vehicles.

With the need to adopt the use of electric vehicles increasing each year, so does the need to consider how fleet management will be affected.

Fleet managers have been overseeing petrol and diesel vehicles for decades. This new type of vehicle, however, comes with a whole new list of challenges.

Why should fleets make the change to electric vehicles?

Firstly, the UK government are planning to ban the production and sale of new petrol and diesel cars and vans in 2030. As a result, we can expect to see a huge increase in the use of electric vehicles by the end of the decade.

Depending on your location, making the change to electric vehicles can have financial benefits. The Ultra Low Emission Zone in London now means that any vehicle not meeting the emissions standard will have to pay. This can be a charge of up to £100 depending on the size of your vehicle. The range of this zone is set to expand, as well as similar zones being introduced in other cities such as Birmingham and Glasgow.

A sudden transition to electric vehicles could put a strain on fleet management. Therefore, one might consider a slow changeover. Swap out your fossil fuel burning vehicles in favour of electric vehicles slowly over the next few years. This would not only mean you are prepared for the future, but will also have time to adapt to the challenges that come with managing a fleet of electric vehicles.

What should fleet managers be aware of?

At this point in time, a newer electric car might get you between 200-300 miles before it needs recharging. Older cars will of course give you less range. This anxiety about the lack of range is usually cited as the main reason for not making the transition.

When combined with the fact that there are limited charging points in the UK, this can be a real cause of worry for fleet managers.

However, both of these factors are set to improve in the coming years. Battery technology is constantly developing; we’re seeing increased capacities each year.

Furthermore, you can expect to see more charging points across the country. Companies such as Allstar are working to make recharging electric vehicles as convenient as possible with over 1500 locations in their UK network.

How can fleet managers adapt to range limitations?

The most sensible decision a fleet manager can make to prepare for the electric revolution is to acquire an electric fuel card.

With a fuel card, your fleet could be managed with great efficiency. Cards such as the Allstar One Electric offer the same benefits as a regular fuel card. This card (along with similar cards offered by BP and Shell) allows you to pay for petrol and diesel as well. For fleets making a slow transition to zero-emission vehicles, this removes any anxiety managers might have about having to keep track of two separate accounts.

You would be given access to one invoice, meaning you don’t need to keep hold of receipts. The spending of each driver in your fleet could be easily monitored.

Suppliers of electric fuel cards are continuing to add more charging stations to their network, and finding charging points for your fleet would be easier than ever with some great charging point locator apps on the market. As with fuel, it is important to plan your drivers’ journeys with charging stations in mind.

With the range limitations of electric vehicles being a primary concern, knowing that your fuel card will help you manage the charging of your fleet can alleviate a lot of stress.

What else should you know about electric vehicles?

When managing a fleet of electric vehicles, there are other aspects to consider that will affect their range.

Do your research before committing to a specific vehicle. The advertised range may be exaggerated as it was tested in ideal conditions. If the stated range of a vehicle is 200 miles on a single charge, be safe and assume it is closer to 150. As your fleet uses these vehicles, you will become more accustomed to their range capabilities and can make adjustments accordingly.

Chargers

Different charging stations will offer different types of chargers. New variants, such as the Ultra-Rapid DC charger, are able to recharge electric vehicles to 80% in 20 minutes depending on the vehicle. When planning your fleet’s route, consider which stations provide access to the quickest chargers. It might be efficient to go slightly off route to charge quickly than to stay on course and charge at a point that takes up to 2 hours to charge.

Weather conditions

When planning your fleet’s journeys, it pays to be mindful of the weather. A colder battery is more resistant to charging, so will take longer. Of course, UK weather does not make this an easy task, but allocating more charging time during the winter months is a sensible practice to get into.

Battery drainage

The rate at which an electric vehicle’s battery will drain depends on multiple factors. Ensure that your drivers are aware of how efficient driving can improve their range. Softer breaking and consistent, lower speeds will help maintain charge. Economy modes are available in some models, but this often comes at the cost of acceleration.

Conservative use of accessories such as air conditioning or heating will reduce drainage. Heating the interior of the car whilst still plugged in is a good option; the driver can maintain comfort without draining precious power.

Eventually, your fleet of electric vehicles will need their batteries replaced. They lose capacity over time just like a phone battery. Some car batteries could last for up to 10 years, but vehicles in constant use like taxis or buses would need their batteries replaced in half the time.

Armed with this information, fleet managers can combat the range limitations of their vehicles. As electric vehicle technology continues to improve, so too will they become easier to manage. To find out more about how you can improve your electric vehicle management, get in contact with our team for expert advice.

 

The UK’s shift to a low-carbon economy is well underway. Yet amid concerns that original plans weren’t ambitious enough, it’s now clear that the pace of this change is accelerating. This means businesses have less time than they may think to adapt their operations to the new way of thinking.

This will affect many aspects of how firms operate, but one particular focus will be on their transport operations. Fleets will have to start moving toward a low or even zero emission future quickly. If they don’t, they risk falling foul of new rules, being left behind by competitors, or facing large additional costs.

The coming changes to the UK’s transport network

The UK’s transportation network will be at the heart of the drive to a carbon-neutral future. According to government figures, the transport sector accounted for 27 per cent of UK greenhouse gas emissions in 2018. What’s more, 90 per cent of this came from road traffic, so it’s clear this will have to be a top priority when developing a low-carbon economy.

That’s why the government is bringing forward plans to move toward electric cars. It’s committed to banning the sale of any new fully petrol or diesel vehicles by 2030 – a decade earlier than previously expected. While some hybrid models will still be allowed after this date, these too are expected to be phased out by 2035. While for now, second-hand sales are unaffected, it will mean fleet buyers have to rethink their plans.

At the same time, the use of low-emission zones in many towns and cities is also set to become more commonplace. If you’re still relying on a heavily petrol and diesel-based fleet, this could mean it becomes prohibitively expensive to operate in urban areas in the coming years. Therefore, you’ll need to have at least some of your fleet using low or zero-emission vehicles to avoid this.

Do you need a zero-emissions fleet?

If you’re planning on buying new vehicles after 2030, you won’t have any choice but to go electric or hybrid. But you shouldn’t be waiting until this date to make plans for a zero emission future. Firms that run electric vehicles (EVs) can already take advantage of reduced running costs, lower emissions and a better reputation among customers.

Many larger brands are recognising the benefits of a zero-emissions approach to their fleets. Parcel delivery firm DPD, for example, which runs a large fleet of vans, added over 700 EVs to its fleet in 2020. This means more than ten per cent of its vehicles are now electric. By 2025, the firm aims to reduce its final-mile emission by 89 per cent, using EVs only for 25 of the UK’s largest towns and cities.

Chief executive of the firm Dwain McDonald said: “We know retail customers want this and the reaction on the doorstep is great when recipients see that their parcel has been delivered emission-free too. So, that is a great base for us to build on.”

It’s clear, therefore, that if companies want to keep customer satisfaction high, adopting a zero emissions goal for their fleets will be essential. They will also have to do this sooner rather than later – not just to meet regulations, but to keep up with competitors.

The challenges of moving to electric vehicles

Of course, moving to an all-electric fleet is easier said than done. There will be a range of challenges involved in this, and it’s not something you should be attempting to do all at once.

Among the questions you’ll have to answer when adopting these vehicles are:

• Where and how will these vehicles be recharged?
• How do you reimburse drivers for electricity usage?
• Will employees have to change their driving styles to use EVs efficiently?
• Should you install dedicated charging points – and if so, how much will these cost?
• Will drivers be resistant to EVs?
• Will you have to alter your route planning to take into account charging points?

With careful planning and communication with employees, many of these issues can be overcome. And the sooner businesses start thinking about this, the better placed they’ll be when EVs are the norm.

One issue will be charging speeds. Traditionally, ‘refuelling’ EVs with power is a much lengthier process than dropping onto a forecourt for a couple of minutes. But this is beginning to change. Charging technology is improving all the time and fuel brands are also starting to focus more closely on this area.

BP Pulse for example, recently announced a new partnership with The EV Network that will greatly expand its fast-charging infrastructure. The company is aiming to have 16,000 charge points by 2030, with a particular priority placed on ultra-fast chargers.

Managing a mixed fleet

Another challenge will be how you manage a mixed fleet of petrol, diesel and electric vehicles. This can be especially challenging when it comes to managing the expenses associated with keeping cars on the road.

However, there are an increasing number of solutions available to help with this. For example, more companies are developing electric fuel cards that can help fleet managers keep control of their EV cars and vans. In the coming years, these will be essential for many businesses in ensuring their employees can keep their electric cars ready for whatever the business demands of them.

Shell, for example, has introduced a new EV card that can be used at any of its Recharge points throughout the UK. There are currently over 100 of these, but the brand is aiming to have more than 5,000 such charging stations operational by 2025.

Having fuel cards that offer cost savings and ease of use for all vehicles in a fleet, whether these are petrol, diesel, hybrid or full electric, will be a key priority for many businesses in the coming years. With an EV-first environment closer than many firms think, they will have to plan now for the future.

If you want to know more about how to incorporate electric cars into your operations, get in touch with Fuel Card Services today for expert advice.