Ten years ago, electric vehicles (EVs) accounted for less than 1% of the new cars registered in Europe. In September 2020, EVs were the second most popular type of car. Diesel fuel will be a thing of the past sooner rather than later. This is largely thanks to new government policies and incentives that encourage people to invest in greener vehicles. These incentives aren’t just for individuals, though — they greatly benefit businesses as well.
Businesses interested in making the switch from traditional diesel vehicles to electric company cars may be hesitant to do so. However, this change doesn’t need to be difficult. Below are some of the key things to keep in mind when transitioning your fleet to EVs.
There’s no BIK tax
One of the main incentives for investing in electric company cars is that drivers currently don’t have to pay benefit-in-kind (BIK) taxes. In 2021/22, drivers will have to pay only a 1% surcharge on company cars producing no CO2 emissions or cars that produce between one and 50g/km CO2 that are capable of driving more than 130 miles on battery power alone.
Although EVs are more expensive than diesel vehicles, they are subject to less tax and can be a smarter investment in the long-run.
Get a Beginners Guide to Electric Company Cars:
Consider the Extra Costs
Switching to EVs isn’t as simple as choosing new cars for your employees. In addition to paying for the vehicle itself, you need to consider the cost of purchasing and installing charging stations.
The price of charging stations can vary dramatically depending on your needs. According to Fleet News, a 7kW charge point capable of charging two vehicles at the same time can cost from £4,000 to install, while a 150kW unit costs around £100,000.
Your business may not need a higher-powered charging station — or it may need a mixture of high- and low-powered charging stations. Either way, you need to factor those costs into your budget when switching to EVs.
Get A Company Car Contract Template
Plan Your Charging Infrastructure
Planning your charging infrastructure will be one of the most challenging aspects of switching to EVs. A few questions to ask yourself when planning your charging infrastructure are:
- What’s your electricity capacity? Not all companies are able to run high-powered charging stations. If that’s the case, you’ll either need to use less powerful charging stations (which might not fit your drivers’ needs) or you’ll need to install an additional substation to fit your electricity needs (which will be expensive).
- Where will charging points be located? This will depend solely on your business’s needs. Charging stations could be on the premises of your business, or you could offer private charging stations in the homes of employees with electric company cars.
- How will charging points be managed? You need to discuss who can use the charge points, and for how long. Create a system prior to introducing EVs to your employees so they know what to expect when charging their vehicles.
Want advice on how to better manage your fleet? Our fleet experts can give you a free consultation!
Examine Driver Behaviour
As tempting as it sounds to switch to a completely EV fleet, the fact is that not all drivers will benefit from EVs. Drivers who spend long periods of time on the road or whose journeys are time-sensitive or unpredictable shouldn’t be driving EVs.
Determining which drivers should be switched to EVs is easier with the help of a fleet tracking system like Fleet Geo. With Fleet Geo, you can retrospectively examine each drivers’ routes to see if an EV fits into their workflow. You can also use Fleet Geo to track the miles of each vehicle, another key factor to deciding which can be switched to an EV.
Switch Over Your Pool Cars First
To make the transition to an electric fleet easier, consider switching over your pool vehicles first. Businesses typically have fewer pool vehicles since they can be used by multiple employees, which makes the change to EVs much simpler. Plus, pool vehicles are legally required to remain on businesses premises overnight. This means they’re guaranteed to be charged each night and will be ready to drive the next business day.
Ready to Switch to EVs?
With the right preparation, transitioning from petrol vehicles to EVs can be easy. No matter where your business is at in its journey to a greener fleet, Vimcar can help manage your fleet. Vimcar’s hardware has a simple plug-and-play installation and is suitable for both petrol vehicles and EVs. Whether your fleet is composed of EVs, petrol vehicles or a mix of the two, Vimcar can go wherever your fleet goes.