Unlocking Cost Control: How EV Subscriptions Can Help Businesses Thrive in Inflationary Times

As businesses grapple with rising costs due to recent budget changes, a fresh approach to fleet management is emerging: electric vehicle (EV) subscriptions. Mercia Fleet Management suggests that flexible EV subscriptions represent a viable strategy for companies looking to mitigate expenses while embracing sustainable practices. In a time of inflation, these solutions not only offer cost savings but also align with corporate sustainability goals.

The Challenge of Rising Costs

The upcoming Autumn Budget is set to impact businesses across the UK with increased costs, including:

• Employers’ National Insurance Contributions
• National minimum wage and living wage hikes
• Increased Vehicle Excise Duty (VED), even for EVs

These financial pressures are prompting companies to rethink their operational strategies, particularly in fleet management.

A Smart Solution: EV Subscriptions

Mercia Fleet Management has highlighted the benefits of introducing EVs through subscription services, especially for businesses with fluctuating or seasonal demands. Research conducted among clients in the professional services and construction sectors revealed that many companies deploy vehicles for short contracts, often lasting just three months.

Andrew Leech, head of Mercia Fleet Management, emphasizes how EV subscriptions can lead to substantial cost reductions. He states, "For clients with seasonal, short-term needs or new employees on probation, we have been able to reduce costs by up to 40% by putting in place three-month subscriptions for EVs."

Cost-effective Options

• MG4 EV: Available for as little as £25 per day
• Tesla Y: Costs around £40 per day, including insurance

These figures stand in stark contrast to traditional daily rental rates, which can soar to approximately £2,000 for models like the Tesla Model 3.

Flexibility in Fleet Management

In today’s dynamic market, the ability to adjust fleet size and composition according to demand is crucial. Leech notes, “The ability to ‘flex’ a fleet based on demand is vital for many businesses facing rising costs following the Budget.” By adopting a subscription model, companies can avoid the pitfalls of expensive daily rentals while ensuring they have the right vehicles for their operational needs.

The Launch of Subscribe Electric

Mercia’s new Subscribe Electric service offers corporate customers access to a variety of EVs at affordable prices. This service includes:

• Comprehensive maintenance
• Breakdown cover
• Tyres and insurance costs

All that businesses need to manage is vehicle charging, simplifying the transition to electric.

Sustainable and Cost-effective

Leech concludes that short-term EV subscriptions not only help control costs but also support companies in achieving their corporate sustainability targets. As businesses navigate the challenges of an inflationary environment, finding innovative solutions like EV subscriptions becomes essential.

Join the Conversation

As the landscape of fleet management evolves, how do you see the role of EV subscriptions in your business? Are you considering this approach to enhance flexibility and control costs?

For more insights on sustainable fleet solutions, check out our articles on the benefits of EVs in corporate fleets and strategies for achieving net zero.

Let us know your thoughts in the comments below or share this article with your network!