EV investment set to top £12bn over next two years

Investment in electric vehicles by UK businesses is set to increase by almost 50% over the next two years, exceeding £12bn, according to a survey conducted by Centrica Business Solutions. 

Centrica surveyed 200 UK-based business who have an annual turnover of more than £1m, in order to find out more about their EV investment intentions. 

In the two years since the government proposed the ban on the manufacture of petrol and diesel vehicles, businesses have spent an estimated £8.2bn on EV adoption. 

Over the next two years, this investment is set to increase to £12bn.

According to the survey, UK businesses plan to spend an average of 4.5% of their annual turnover on EV adoption over the next two years. 

Over a quarter of respondents said they expect at least a fifth of the vehicles within their fleet to be electric by 2022. 

Of the businesses that have already begun to electrify their fleets, the survey revealed that the key drivers are pressure from the government, wanting to operate for free in Ultra-Low-Emission Zones and the lower maintenance cost of EV’s. 

Cost is the biggest drawback to EV adoption, with vehicle cost the main concern for 44% of the businesses polled. 

Two-thirds of respondents suggested that the government should introduce more tax subsidies and grants to encourage the uptake of electric vehicles. 

Alan Barlow, director of Centrica Business Solutions, said: ‘There is a clear recognition among UK businesses of the increasingly important operational role electric vehicles can play for them in meeting their decarbonisation goals. 

‘It’s our view that onsite generation from solar panels, allied with battery storage and smart charging is the right option for many businesses to enable them to provide charging facilities without facing large increases to power costs.’ 

Transport minister, Rachel Maclean said: ‘It is encouraging to see UK businesses investing in electric vehicles and embracing greener technology to decarbonize our transport network.

‘Businesses having confidence in electric vehicles is crucial to end the UK’s contribution to climate change and improve air quality for all.

‘This is why we are investing nearly £1.5bn for plug-in vehicle grants, as well as schemes to support ChargePoint infrastructure across the UK.’

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