Motor fleet risk and opportunity

It is difficult to escape discussions around the rapidly approaching EV deadlines. The Government’s current deadline is for all new cars and vans to be 100% zero emission by 2035, and no new petrol or diesel cars will be sold after 2030. The requirement is for 80% of new cars and 70% of vans sold by 2030 to be zero emission..

At present electric light commercial vehicles only make up 1.6% of the market sector. It is expected that sales will increase to 100% by 2035. Manufacturers have been set targets to meet, which for 2024 many are expected to have missed, resulting in large financial penalties.

Organisations and local authorities who hold fleets must also consider residual values. Capital expenditure is often available for purchasing but this could result in large losses over time depending on the brand and how long the vehicle is kept.

For those who lease vehicles the monthly cost could be higher to take account of the falling values, with companies balancing profits and councils trying to offer value for money to taxpayers. It is estimated that the loss on new cars could be up to 60% after three years with a mileage of 10,000 per year.

With space at a premium, installing charging points on site can be challenging and even more so with larger vehicles requiring larger bays. Options for those who can take vehicles home have many more charging options, such as lamp posts, but installation is still not keeping up with demand and it is certainly regional. As of 31 January 2025, Greater London had 22,706 public charge points, followed by the South East with 9,627 and West Midlands with 6,550. Northern Ireland had only 687.

On a positive note, range anxiety for many is now becoming a thing of the past as vehicles are constantly being improved though new battery technology and many new cars achieving 300 - 400 miles on a single charge.

Ultra rapid chargers deliver a charge over 150kw resulting in 80% in a time frame over around 20 minutes making it much more practical for those on longer journeys.

Commercial vehicles have developed and are more widely available, such as refuse collection vehicles and even cage tippers coming into the market. These can provide a good alternative to petrol and diesel, particularly when public facing. They will not require the range and can lose some payload, so availability should be good news for local authorities.

Many local authorities have developed a sustainability policy but despite vehicle improvements are now choosing to hold off purchasing decisions. This is due to the long lead-in time so are waiting to get upgraded vehicles, coupled with the charging challenges. Some are looking to hydrogen charging as an alternative option, but time may not be on their side with speed of vehicle development by 2035.

Repair costs for EVs are another factor for consideration, with 50% of the cost of an EV the battery, any possible damage following a collision can see the vehicle written off. The alternative is high repair costs.

Automated vehicles in development promise a drop in collisions as the vehicle is in charge of the journey not the driver, removing driver error. It is predicted that with automated vehicles will come a change in vehicle ownership with a move towards ride sharing or on demand use.

In the shorter-term battery range will almost certainly improve and perhaps become more environmentally and ethically friendly, with the way we charge becoming more accessible, such as wireless charging. This will aid those who live in flats or where off-street parking is not an option.