5 minute read
Electric Vehicles
from GreenFleet 134
by PSI Media
Ensuring SMEs are not overlooked in the switch to EVs
As the UK moves closer to switching to electric vehicle fleets, how can we ensure smaller businesses have the information and support they need to confidently make the switch?
The UK’s almost six million SMEs have had a challenging 12 months, with preparations for Brexit and the impact of COVID-19. Although refreshing the SME fleet mix may not have seemed business critical, the journey to zero emission road transport for new cars and vans in 2030 is picking up pace. Backed up by calls from the likes of the British Chambers of Commerce, the right support will help SMEs embrace opportunities and get ahead of the EV curve.
In response to this, the AA’s business services division has launched a new “yellow” paper ‘Keeping the UK’s SMEs on the Road’, which gives advice to smaller businesses and explains the AA’s commitment to ensuring they are not overlooked as they navigate the journey to a zero emission fleet.
Luke Flinders, head of affinity partnerships, British Chambers of Commerce, said: “We warmly welcome this pledge of support for SMEs from the AA. Businesses have been busy adapting since the events of 2020 and early 2021 but it is hugely important smaller organisations aren’t overlooked. SMEs need clear advice and trusted partners in order to be able maximise the opportunities ahead.”
Marc Samuel, head of SME and B2B telesales at the AA, added: “2020 was a year we will never forget and one that many businesses are still working hard to navigate. Now, more than ever, we want to ensure SMEs are front of mind and getting the support they need.
“We’re at a really exciting point in automotive history and, looking ahead, there are many options for businesses to embrace low emission vehicles and the benefits for their operations. I urge SMEs to lean on their partners, ask the difficult questions and make sure their voices are heard.
“Indeed, we recently celebrated a 98th anniversary with one of our SME customers, which is a fantastic testament to our heritage of working with smaller businesses. We’re ready to listen, support and guide now, just as we have been for more than 100 years.”
Investigating alternative fuels
The government’s current goal is for zero net emissions by 2050. It has brought forward an end to the sale of new petrol, diesel and most hybrid cars and vans by 2030, which means this milestone is now less than a decade away. While this seems like a long way off, and electric vehicles may not appear right for every current business need, it is an exciting time for the industry and the AA has pledged to support drivers in their next steps into EV.
Van usage has increased over the last 25 years, with 55.5 billion miles driven by vans in 2019. Yet, while the use of ultra low emission vans is increasing, it’s relatively low at just 10,400 licensed vans at the end of 2019 (Department for Transport, September 2020). So, there are opportunities for SMEs, whatever the make-up of their vehicles, looking to refresh their fleet and set themselves up for the next stage of growth.
The AA’s yellow paper explains why SMEs should consider alternatively fuelled vehicles. It says there’s a range of cars and vans on the market, so it is all about deciding which fuel or power source is right based on the business’s needs. It recommends fleets take the time to analyse how their vehicles are used and to get expert advice.
Drivers are positive about electric vehicles, which is another reason why businesses should consider alternatively fulled vehicles. In fact, the AA’s 19/20 Operational Fleet Report indicated employees favour EVs for work purposes rather than personal use, while 73 per cent of the fleet managers surveyed felt the use of EVs could actually be better for driver health. SMEs should also be reassured that if they breakdown in an electric vehicle, they have support. Most of the AA’s Patrols are now trained to the equivalent of IMI Level 2 and a third of its Prestige Network of over 500 garages are already EV capable. The addition of the AA’s Freewheeling Hub allows us to recover EVs from the roadside, extending our operational capability. The AA has also invested in a hybrid training rig and concept hydrogen refuelling van, so they have all bases covered, giving drivers peace of mind. The AA yellow paper also points out the ‘Last mile’ savings of alternatively fuelled vehicles. The use of ‘micromobility’ vehicles, such as smaller vans, bikes and scooters, for local and ‘last mile’ delivery makes the use of alternatively fuelled vehicles more suitable than those run on petrol or diesel, particularly as more clean air zones are activated in UK cities. Not only does this benefit fleets economically, The AA’s business services division has launched a new “yellow” paper called Keeping the UK’s SMEs on the Road but environmentally too. There is also the tax relief to consider – pure EVs will not receive any Benefit-in-Kind tax for 2020/21 – irrespective of the date the vehicle was registered. In 2021/22 they will attract a BiK rate of just 1 per cent, and just 2 per cent in 2022/23.
No one-size-fits-all approach
AA President Edmund King OBE, said: “As is expected, but often overlooked, SMEs represent a wide range of organisations from single person operations through to multi-site offices. These businesses also span a huge variation of sectors ranging from retail through to construction and finance so they all have very different needs. Therefore, there’s no onesize-fits all approach to supporting SMEs. What is clear, is that for our economy and innovation to thrive, SMEs must also succeed and it’s vital these businesses get the right support, tailored to their specific needs. Managing a fleet, be it one vehicle or over 50, is no exception to this. “We understand that every SME will be using, procuring and managing its business vehicles differently. While we work with each organisation to offer bespoke advice, there are core principles that underpin fleet management, be it for breakdown and accidents or regular service, maintenance and repair. We’ve created this paper to collate all of that advice and insight into one place, to support our SME customers.” L
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