One of the most important drivers (excuse the pun) of business decisions is the effect on the bottom line. How will this decision impact my profits or is there another way of doing things that is more cost effective? In this context I want to explore some of the benefits of electric car fleets for businesses.
Energy efficiency is a major factor in how most companies operate. Whether that be standard running costs of electricity and gas for company premises or production equipment power usage. How often has energy efficiency when it comes to the car that you and/or your employees drive entered into your considerations though? For many companies, especially those with large fleets, the running costs can be a major expense. There’s not just the purchase or leasing of the vehicles involved, there’s road tax, insurance and maintenance. Not to mention the extortionate cost of fuel to keep you and your employees on the road.
It’s little wonder then, that more and more companies are looking to the electric vehicle industry. Understanding the economic benefits that running an electric fleet may yield can be quite a surprise. (And don’t forget the important and obvious environmental advantages of using a less polluting scheme).
Along with the environmental impact, the most important benefit is obviously the cost savings for the company. The main cost savings come from:
There are also benefits in terms of reputation (from being more environmentally responsible) but also with your employees. There are certain benefits to your employees in providing them with electric vehicles:
Here, there are savings available too. It’s a fact that electric vehicles are generally more expensive than standard cars at the moment. The government, however, has included a number of grants to persuade more companies to adopt electric fleets. This is as a part of their overall strategy to remove diesel and petrol vehicles by 2035.
Small vans are eligible for up to £2,500 grant, large vans £5,000 and trucks up to £25,000. In addition the scheme covers other electric vehicles including electric taxis where discounts are up to a maximum of £7,500, and electric motorbikes up to £500. The grants are still available in 2024 (although the government does regularly review the market and may change these in future).
You’ll also need to consider charging points. Although the prevalence of charging points around the country is increasing, it’s still a little patchy. So it’s worth considering installing charging points at your premises. Here too there are government interventions to assist in your costs, another of the benefits of electric car fleets. The Government offers businesses financial support under the Workplace Charging Scheme (WCS). This is a voucher-based scheme that provides support towards the up-front costs. It covers the purchase and installation of electric vehicle charge-points for eligible businesses, charities and public sector organisations.
