Allstar Unveils Essential Fleet Electrification Resource
Hello, Champions of Net Zero!
As the world accelerates towards a more sustainable future, the electrification of vehicle fleets is becoming a focal point for businesses across the UK. In this transformative landscape, Allstar—a leading provider of electric vehicle (EV), fuel, and business expense payment solutions—has stepped up to provide essential guidance for companies navigating this paradigm shift. Their newly launched resource, titled How to Manage Electric Vehicles in a Company Car Fleet, is a comprehensive guide aimed at assisting fleets in their transition to electric vehicles.
This insightful paper offers clear, actionable strategies for managing EV charging policies and systems, all while optimising costs and enhancing productivity. With the number of battery electric vehicle (BEV) models available set to exceed 125 by the end of 2024—a staggering 38% increase from just a year prior—the need for robust fleet management strategies has never been more critical.
In tandem with the growing variety of electric vehicles, the public charging infrastructure has also witnessed remarkable expansion. Over 70,000 charge points have been installed across the UK, encompassing a significant number of rapid and ultra-rapid chargers. This extensive network is making the adoption and integration of EVs increasingly accessible and convenient for fleet operators.
Moreover, advancements in battery technology have led to modern EV batteries often outlasting their warranty periods. Simultaneously, the charging networks and renewable energy capacity are expanding to meet the rising demand, ensuring that the UK’s electricity grid can support widespread electrification. However, despite these advancements, challenges persist, particularly around perceptions of charging capacity, battery longevity, and the reliability of the electricity grid.
Key Considerations for Fleets
Allstar’s report highlights several vital considerations for fleet managers as they embrace electric vehicles:
- Taxation Benefits: The UK government has introduced attractive tax incentives to encourage EV adoption. Starting in 2025/26, drivers of zero-emission EVs will only pay benefit in kind (BIK) tax on 3% of the vehicle’s value, a stark contrast to the 26% tax for petrol vehicles emitting 100g/km of CO2. Additionally, employers can benefit from reduced Class 1A National Insurance contributions for EVs.
- Charging Cost Management: The cost of charging an EV can be as low as 1p per kWh during off-peak hours at home, while ultra-rapid public chargers can charge up to £1.10 per kWh. Fleet managers must devise strategies to manage these cost discrepancies, ensuring a balance between convenience, productivity, and expenses.
- Maintenance Savings: One of the significant advantages of EVs is their reduced service, maintenance, and repair (SMR) costs, which are typically 50% lower than those of internal combustion engine (ICE) vehicles. The fewer moving parts in EV powertrains lead to a decreased likelihood of breakdowns.
- Revised Management Processes: The transition to electric vehicles necessitates new payment systems to effectively track charging costs and manage reimbursements. Fleet management systems must evolve to provide actionable data related to both public and home charging.
- Vehicle Leasing and Residual Values: Leasing vehicles can help offset unpredictable residual values in the rapidly changing EV market. Businesses should engage in long-term planning regarding resale values for outright purchases.
In addition to these considerations, the whitepaper offers concrete strategies for fleet managers and decision-makers to successfully transition to EVs:
Actionable Insights for a Smooth Transition
- Assess Fleet Operations: Businesses are encouraged to evaluate their current fleet usage, operational costs, and potential savings associated with EV adoption. Identifying suitable vehicle types and drivers is essential for a seamless transition.
- Enhance Driver Education: Providing training for employees on EV-specific practices—such as maximising range through regenerative braking and utilising preconditioning features—can significantly enhance user experience and vehicle performance.
- Optimise Charging Strategies: Developing policies for home and public charging reimbursement is crucial. Emphasising cost-effective solutions, such as smart tariffs and overnight charging, ensures drivers can make the most of downtime while charging, thereby enhancing productivity.
- Leverage Tax Advantages: Implementing salary sacrifice schemes, benefiting from 100% first-year allowances for qualifying vehicles, and taking advantage of reduced Class 1 National Insurance contributions can lead to substantial cost savings for businesses.
Paul Holland, Managing Director for UK/ANZ Fleet at Corpay, which includes the Allstar brand, emphasised the significance of this transition for UK fleets. “The 2030 phase-out of petrol and diesel-only vehicles represents a critical turning point for UK fleets. Businesses must act now to position themselves for success in a new era of transportation. The first step is equipping themselves with insights and information on how to navigate this change effectively and with minimal disruption,” he stated.
Holland further added, “Electrification isn’t just beneficial for the environment; it makes sound business sense as well. With potentially lower benefit in kind taxes, reduced fuel and maintenance costs, and access to government incentives, fleets can achieve significant savings while contributing to a greener future. Our goal is to ensure that businesses not only manage this transformation but also view it as a strategic advantage. With the right plans and support, electrification can transform from a challenge into an opportunity for leading the way in smarter, more sustainable operations.”
As we continue to advance towards net-zero targets, resources like Allstar’s How to Manage Electric Vehicles in a Company Car Fleet are invaluable for guiding fleets through this exciting yet challenging transition. By embracing these insights, businesses can not only enhance their operational efficiency but also play a pivotal role in shaping a more sustainable future.
In conclusion, the journey towards electrification is not merely a trend; it is a necessity for businesses wishing to remain competitive in a rapidly changing market. As we look ahead to the 2030 deadline for petrol and diesel vehicles, it is paramount for companies to begin their preparations now. The time to act is now, and with the right tools and strategies in place, the transition to electric vehicles can be a smooth and beneficial journey.
Image of report from Allstar
