{"id":6542,"date":"2020-07-12T18:44:09","date_gmt":"2020-07-12T16:44:09","guid":{"rendered":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/?p=6542"},"modified":"2020-07-12T18:44:09","modified_gmt":"2020-07-12T16:44:09","slug":"ev","status":"publish","type":"post","link":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/2020\/07\/12\/ev\/","title":{"rendered":"Will company car mileage cut help more drivers choose an EV?"},"content":{"rendered":"<p style=\"text-align: justify;\">The coronavirus pandemic is changing the way people work, with fewer face-to-face meetings and an inevitable decline in company car mileages.<\/p>\n<p style=\"text-align: justify;\">Three-quarters (74.8%) of respondents to a <a href=\"https:\/\/cdn.fleetnews.co.uk\/web\/1\/digital-issue-categories\/june-25-2020\/fleet-june-20\/index.html#page=35\" target=\"_blank\" rel=\"noopener noreferrer\"><em>Fleet News<\/em> survey<\/a>\u00a0say they expect greater use of video conferencing in the long term.<\/p>\n<div class=\"\" style=\"text-align: justify;\" data-ad-mobile-replace=\"mpu-1\" data-responsive-movable-xs=\"ad-196359-mpu-1\" data-responsive-movable-sm=\"ad-196359-mpu-1\"><\/div>\n<p style=\"text-align: justify;\">Almost 61% also expect to see average mileages of their company car fleet fall.<\/p>\n<p style=\"text-align: justify;\"><a href=\"https:\/\/www.ons.gov.uk\/employmentandlabourmarket\/peopleinwork\/employmentandemployeetypes\/articles\/coronavirusandhomeworkingintheuklabourmarket\/2019\" target=\"_blank\" rel=\"noopener noreferrer\">ONS figures released in March 2020<\/a>,\u00a0revealed some 1.7 million people were working mainly from home out of a working population of 32.6m.<\/p>\n<p style=\"text-align: justify;\">In <a href=\"https:\/\/www.fleetnews.co.uk\/polls\/do-you-expect-working-from-home-to-become-your-new-normal\" target=\"_blank\" rel=\"noopener noreferrer\">a separate <em>Fleet News<\/em>\u00a0poll<\/a>, some two-thirds (68.1%) of respondents said working from home will become their &#8216;new normal\u2019.<\/p>\n<div class=\"\" style=\"text-align: justify;\" data-ad-mobile-replace=\"mpu-2\" data-responsive-movable-xs=\"ad-196359-mpu-2\" data-responsive-movable-sm=\"ad-196359-mpu-2\"><\/div>\n<p style=\"text-align: justify;\">Andy Eastlake, chief executive of the Low Carbon Vehicle Partnership (LowCVP), says lockdown has shown that many more meetings can be conducted virtually, cutting company car mileages, while office attendance will reduce significantly as more people will continue to work from home.<\/p>\n<p style=\"text-align: justify;\">\u201cWhat all this means is that the drivers behind the choice of company car will change and the benefits of electric vehicles will be even greater,\u201d explained Eastlake.<\/p>\n<p style=\"text-align: justify;\">\u201cWith the driving range and availability of standard electric models increasing all the time, choosing a full battery EV (BEV) has, in any case, been becoming a more obvious choice for many more company drivers.<\/p>\n<p style=\"text-align: justify;\">\u201cAdd to this, the new company car tax rules and the possibility of additional Government incentives coming down the line, not to mention access restrictions in several urban areas affected by air quality issues, and the choice will soon become even more compelling.\u201d<\/p>\n<p style=\"text-align: justify;\"><a href=\"https:\/\/www.fleetnews.co.uk\/news\/fleet-industry-news\/2019\/07\/09\/no-company-car-tax-on-electric-vehicles-says-government\" target=\"_blank\" rel=\"noopener noreferrer\">Company car drivers will pay no tax on a pure EV\u00a0this tax year<\/a>, while drivers of plug-in hybrid electric vehicles (PHEVs) are also enjoying much more favourable rates.<\/p>\n<p style=\"text-align: justify;\">The <a href=\"https:\/\/www.fleetnews.co.uk\/news\/latest-fleet-news\/electric-fleet-news\/2020\/07\/06\/company-car-demand-fails-to-keep-pace-with-private-sales\" target=\"_blank\" rel=\"noopener noreferrer\">latest figures from the Society of Motor Manufacturers and Traders (SMMT)<\/a>\u00a0show diesel new car registrations were down 60% and petrol fell 40% compared to June 2019&#8217;s figures.<\/p>\n<p style=\"text-align: justify;\">However, BEV registrations increased massively last month, compared to June 2019.<\/p>\n<p style=\"text-align: justify;\">There were 8,903 pure electric new cars registered in June \u2013 a 262% increase on the 2,461 pure EVs sold in the same month last year.<\/p>\n<p style=\"text-align: justify;\">Registrations of plug-in hybrid electric vehicles (PHEVs), meanwhile\u00a0were up 117% year-on-year, from 2,270 units in June 2019 to 4,926 PHEVs registered last month (June).<\/p>\n<p style=\"text-align: justify;\">Ashley Barnett, head of consultancy at Lex Autolease, said: \u201cThe coronavirus outbreak has proven extremely challenging for the new vehicle market, but even during the height of lockdown, monthly EV registrations were still up year-on-year.<\/p>\n<p style=\"text-align: justify;\">\u201cWe see emerging from lockdown as a clear opportunity to accelerate the progress that\u2019s already been made in terms of cleaning up our roads \u2013 especially because a shift towards more flexible working patterns and the need for less business mileage could make EVs more practical for more people.\u201d<\/p>\n<p style=\"text-align: justify;\">The appetite for electrification is increasing among fleets, with\u00a0<a href=\"https:\/\/cdn.fleetnews.co.uk\/web\/1\/digital-issue-categories\/june-25-2020\/fleet-june-20\/index.html#page=5\" target=\"_blank\" rel=\"noopener noreferrer\">leasing companies reporting record levels of demand from company car drivers<\/a>, according to\u00a0the <a href=\"https:\/\/cdn.fleetnews.co.uk\/web\/1\/digital-issue-categories\/june-25-2020\/fleet-june-20\/index.html#page=5\" target=\"_blank\" rel=\"noopener noreferrer\">June digital edition of\u00a0<em>Fleet News<\/em><\/a>.<\/p>\n<p style=\"text-align: justify;\">Dr Mike Brown, director of strategic partnerships at The University of Salford, told <em>Fleet News<\/em>: \u201c\u201cFor the company car driver post-COVID-19, business is going to be totally different.<\/p>\n<p style=\"text-align: justify;\">\u201cIt is highly unlikely face-to-face meetings are going to be a frequent feature of business anytime soon resulting in significantly lower business mileage leading to painful personal tax implications. This will add further impetus for company car drivers to consider switching to electric.\u201d<\/p>\n<p style=\"text-align: justify;\">Lauren Pamma, electrification propositions lead at Lloyds Banking Group, is charged with helping to drive EV take-up at Lex Autolease and Black Horse. She believes lower mileages, with more video conferencing and more employees working from home, could bring pure electric powertrains into scope for more company car drivers. \u201cOn the whole, I think it will accelerate that adoption,\u201d she said.<\/p>\n<p style=\"text-align: justify;\">However, she stressed the biggest consideration for fleets was judging an EV\u2019s suitability on a wholelife cost basis. She explained: \u201cIf on a wholelife costs basis, EVs continue to compare well to internal combustion engine vehicles, fleets will increasingly make the switch.\u201d<\/p>\n<p style=\"text-align: justify;\">In a post-COVID world, Arval UK is also expecting overall mileage profiles to drop, however, consultant David Watts told <em>Fleet News<\/em>: \u201cThis is not relevant to the uptake of EVs within company car fleets as the profile of individual journeys will continue to be the same, even if they are made less often.<\/p>\n<p style=\"text-align: justify;\">\u201cThe focus on annual mileage is a general misperception around the feasibility of an EV for a company vehicle driver when the focus should be on the daily and overall journey mileage.<\/p>\n<p style=\"text-align: justify;\">\u201cWith an average real-life range of around 190 miles, EVs are, in principle, appropriate for all company car drivers so it\u2019s just a question of how easy or hard it will be and how willing the driver is to manage the longer journeys.\u201d<\/p>\n<p style=\"text-align: justify;\">Watts says a \u201cquick half-hour stop\u201d at a rapid charger will give a driver an extra 80-100 miles of range, essentially negating the range issue for longer journeys. \u201cA stop which should naturally be factored into any long journey for health and safety reasons,\u201d added Watts.<\/p>\n<p style=\"text-align: justify;\">Matthew Walters, head of consultancy and customer data services at\u00a0LeasePlan\u00a0UK, says it is important to move the focus away from mileage and onto the nature of the trip.<\/p>\n<p style=\"text-align: justify;\">He explained: \u201cIt\u2019s more than\u00a0just looking at the mileage profile of your employees and saying anyone who drives up to 10,000 miles is suitable for an EV, while those who do more than 40,000 aren\u2019t.<\/p>\n<p style=\"text-align: justify;\">\u201cIt\u2019s about analysing the make-up of each trip, including the locations, the regularity and the available infrastructure to support it.\u201d<\/p>\n<p style=\"text-align: justify;\">He said: \u201cOnce companies start to use this information, they\u2019re likely to be able to find more ways of making EVs fit for their fleet.\u201d<\/p>\n<h5 style=\"text-align: justify;\"><strong>Fleets urged to review vehicle contracts<\/strong><\/h5>\n<p style=\"text-align: justify;\">Peter Golding, managing director at FleetCheck, said Covid-19 had created a range of potentially quite dramatic changes in key leasing variables.<\/p>\n<p style=\"text-align: justify;\">He explained that the leasing terms used by most fleets were created for a world of business travel that no longer exists and is unlikely to return to pre-pandemic levels.<\/p>\n<p style=\"text-align: justify;\">\u201cThe rise of video-conferencing means the likelihood of much reduced mileage for many drivers while there will also be, in many organisations, sadly, the need to make redundancies,\u201d he said.<\/p>\n<p style=\"text-align: justify;\">\u201cWhat all of this this means is that the mileage and year cycles in your current leases are potentially, even probably, no longer appropriate.<\/p>\n<p style=\"text-align: justify;\">\u201cFleets need to work out what will be needed in the future and talk to their leasing providers about making changes.\u201d<\/p>\n<p style=\"text-align: justify;\">Golding suggests fleets should consider conducting a review of their fleet policies in order to incorporate all of the changes that were now occurring.<\/p>\n<p style=\"text-align: justify;\">\u201cWhile lease contract changes may present themselves as an immediate problem, the truth is that now is a good time to start looking at your fleet policy in detail,\u201d he said.<\/p>\n<p style=\"text-align: justify;\">\u201cThe coronavirus crisis has had a wide-ranging impact and there are many issues to be considered.\u201d<\/p>\n<p style=\"text-align: justify;\">\n<p><span class=\"posted-by\">Source:\u00a0 <a href=\"https:\/\/www.fleetnews.co.uk\" target=\"_blank\" rel=\"noopener noreferrer\">https:\/\/www.fleetnews.co.uk<\/a><\/span><\/p>\n<h3 style=\"text-align: center;\"><a href=\"https:\/\/advancedfleetmanagementconsulting.com\/eng\/consultancy\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>CUT COTS OF THE FLEET WITH OUR AUDIT PROGRAM<\/strong><\/a><\/h3>\n<p><a href=\"https:\/\/advancedfleetmanagementconsulting.com\/eng\/consultancy\/\"><img loading=\"lazy\" class=\"aligncenter wp-image-5377\" src=\"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-content\/uploads\/sites\/3\/2020\/04\/nueva-ley-auditoria.jpg\" sizes=\"(max-width: 858px) 100vw, 858px\" srcset=\"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-content\/uploads\/sites\/3\/2020\/04\/nueva-ley-auditoria.jpg 2000w, https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-content\/uploads\/sites\/3\/2020\/04\/nueva-ley-auditoria-300x200.jpg 300w, https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-content\/uploads\/sites\/3\/2020\/04\/nueva-ley-auditoria-1024x682.jpg 1024w\" alt=\"\" width=\"858\" height=\"572\" \/><\/a><\/p>\n<p style=\"text-align: justify;\">The audit is a key tool to know the overall status and provide the analysis, the assessment, the advice, the suggestions and the actions to take in order to cut costs and increase the efficiency and efficacy of the fleet. We propose the following fleet management audit.<\/p>\n<h3 style=\"text-align: center;\"><a href=\"https:\/\/advancedfleetmanagementconsulting.com\/eng\/consultancy\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>FLEET MANAGEMENT AUDIT<\/strong><\/a><\/h3>\n","protected":false},"excerpt":{"rendered":"<p>The coronavirus pandemic is changing the way people work, with fewer face-to-face meetings and an inevitable decline in company car mileages. Three-quarters (74.8%) of respondents to a Fleet News survey\u00a0say they expect greater use of video conferencing in the long term. Almost 61% also expect to see average mileages of their company car fleet fall&#8230;.<\/p>\n","protected":false},"author":3,"featured_media":6543,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[18],"tags":[7],"_links":{"self":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/posts\/6542"}],"collection":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/comments?post=6542"}],"version-history":[{"count":1,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/posts\/6542\/revisions"}],"predecessor-version":[{"id":6544,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/posts\/6542\/revisions\/6544"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/media\/6543"}],"wp:attachment":[{"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/media?parent=6542"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/categories?post=6542"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/advancedfleetmanagementconsulting.com\/eng\/wp-json\/wp\/v2\/tags?post=6542"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}