Businesses have the power to accelerate the EV revolution

Vehicles owned or leased by businesses have the potential to accelerate an electric vehicle (EV) revolution, according to a new report published by Cornwall Insight and PwC. 

Fleets – a group of vehicles owned or leased by businesses –  accounted for 56% of all new car registrations in 2019, and with the life cycle of these vehicles estimated as being anywhere between two to four years, the report highlights that electrifying these vehicles has the potential to accelerate growth in the private and second-hand EV market. 

The authors of the report have highlighted that as businesses renew their vehicle stock, this will not only deliver greater choice and affordability for consumers but will also act as a catalyst for increased consumer adoption of EVs. 

Research in the report states that if all 5.3 million fleet vehicles were to generate zero emissions, as much as 30 million tonnes of CO2 would be eliminated – around 25% of all UK transport emissions. 

According to the report, as more businesses switch to EVs it will reinforce the economics of EV charging infrastructure throughout the UK.

Daniel Atzori, a research partner at Cornwall Insight, said: ‘The electrification of fleets is set to gain momentum, driven both by sustainability commitments and by compelling economic drivers.

‘Fleets are likely to play a crucial role in the upcoming electrification of mobility and therefore in the decarbonisation of transport.

‘Since fleets can ensure a high rate of utilisation of charging assets, fleet charging offers a range of interesting investment propositions. Having a clear and well-defined strategy will be crucial for fleet managers, charge point operators and investors looking to achieve leadership in this emerging market.’

Steve Jennings, energy and utilities leader at PwC UK, added: ‘Pent up demand and rising levels of awareness amongst fleets is not enough to accelerate adoption. Government policy has a critical role to play.

‘As we emerge from the current Covid-19 pandemic, alongside a strong focus on stimulating economic growth, we may see a growing emphasis on sustainability, including regulatory and strategic support for EV charging, to help address emission levels and improve air quality.’

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