GreenFleet Electric vehicle Special

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ELECTRIC VEHICLE

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The opportunities and challenges surrounding electric vehicles Brought to you by

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Recent reports suggest that the government is set to bring forward the ban on sales of new petrol and diesel vehicles, including hybrids and plug-in hybrids, from 2040 to 2030. Evidence shows that there is support for such measures, but that barriers remain in place before fleets can confidently make the switch to electric vehicles

Alex Haffner, strategic insight manager at National Grid ESO, shares insights from the 2020 Future Energy Scenarios report, which for the first time reflects net zero targets in its predictions

Despite the impact of Covid-19, the electric vehicle market’s collective accomplishments over the past two years signal a pattern of ongoing growth, which is expected to continue over the course of the next decade. Jamie Hamilton, head of electric vehicles at Deloitte, explains further

11 Expert Panel

16 EV Drivers

18 Roundtable

A number of large companies have made public commitments to switch to zero emission vehicles, with many already on that journey. But barriers still need to be overcome to ensure those who want to switch to electric vehicles, can. Our panel of experts discuss the challenges on route to zero-emissions

Gill Nowell from the newly formed Electric Vehicle Association (EVA) England discusses its recent research, which shows people in England are generally in support on phasing out petrol and diesel vehicles in pursuit of cleaner air

As fleets are coming to terms with the enduring effects that COVID 19 has had on operations, attention is now turning once again to the long term need to become zero emission. To discuss progress and current challenges a diverse group of fleets and emission reduction specialists attended GreenFleet’s virtual roundtable on 9 September

Issue 129 | GREENFLEET MAGAZINE

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Sponso’s Message

Electrifying business The Volvo range has undergone an exciting transformation over the last few years and has made significant steps into the electrification space. As we see plug-in hybrid and electric car sales in the UK accelerate, Volvo is well placed to support you and your businesses with taking the next step

Ever since its inception, the Volvo brand has always been synonymous with safety. And we continue to lead the way with the safety technology on our vehicles. But in a world where the threat of climate change is growing and global warming is heading towards three degrees, it’s important that our approach to safety extends to protecting the world around us. For Volvo Cars it’s about minimising our environmental impact, maximising our social impact and caring for our customers and employees. And for our fleet and business customers specifically it is about assisting and supporting you with your own CSR objectives and helping steer you through what can be a challenging area. Volvo Cars has one of the most ambitious sustainability programmes in the automotive sector and was recognised in 2019 by the Ethisphere Institute, a global leader in defining and advancing the standards of ethical business practices, as a World’s Most Ethical Company®. This is the third consecutive year that Volvo Cars has received this recognition. And recently our CEO Hakan Samuelsson received Autocar’s most prestigious personal award in recognition of his leadership – a large part of which was

his ambitious electrification strategy. By 2025 Volvo has three headline sustainability ambitions. The first is to have one million electrified cars on the road and half of all annual sales to be fully electric. We already offer plug-in hybrids across our entire range. And over the next five years we will launch five pure electric vehicles, starting with our XC40 P8 which is available to order now. Our second ambition is for at least 25 per cent of the plastics used in every newly launched Volvo to be made from recycled materials. And our final 2025 target is that we aim to achieve climate neutral manufacturing operations. This is part of a wider climate plan that aims to reduce the overall carbon footprint per car by 40 per cent between 2018 and 2025. And by 2040, Volvo Cars aims to be a climate-neutral company. Plug-in hybrid technology Right now, plug-in hybrid technology is a great option for fleets. Although the initial capital outlay can look high compared to traditional engine alternatives, over the life of the vehicle your business stands to make significant savings due to lower running costs and tax benefits. Lower Benefit-in-kind rates

Steve Beattie Head of Fleet and Remarketing Volvo Car UK

mean plug-in hybrids can also be a costefficient option for company car drivers too, providing the vehicle is driven appropriately and the battery is charged regularly. When it comes to electrified vehicles, range anxiety is still a concern amongst drivers and whilst a more extensive charging infrastructure is established nationwide, plug-in hybrids help alleviate that worry. With a pure electric range of up to 36 miles our Volvo plug-in hybrids will comfortably manage the average UK commute emission free. Volvo has branded its plug-in hybrid range ‘Recharge’. By introducing new powertrains, we have been able to increase the choice when it comes to power output and list price. For example, our award-winning XC40 is now available as a T4 plug-in hybrid. Built on our CMA platform it is our entry level PHEV with a P11D of under £40,000. And at 12 per cent BIK it will cost a 40 per cent tax payer just £156 a month. The diversity of our plug-in hybrid powertrains is further demonstrated by our recently launched T6 available now on the XC60 mid-size SUV and the V60 estate. Once again we see low BIK rates resulting in attractive monthly costs for drivers – and that’s before taking in to account the money saved through reduced fuel costs. Also available to order now is our XC40 Recharge P8 pure electric which was the first fully electric premium compact SUV on the market in the UK. The 75kwh lithium-ion battery delivers an estimated range of over 250 miles on a single charge and 408 hp. It’s an exciting time for Volvo and with our ‘Recharge’ range of vehicles, we feel we have the right products at the right time. In addition to our cars we also offer expert and dedicated fleet support to our business customers. Our aim is to be a brand that is easy to do business with and which ensures that our customer’s individual needs are always met. If you would like to speak to one of the team for advice on how Volvo can support your business please contact us below. L FURTHER INFORMATION 0345 600 4027 volvocars.co.uk/business

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EV REPORT

Report: making the switch to electric Recent reports suggest that the government is set to bring forward the ban on sales of new petrol and diesel vehicles, including hybrids and plug-in hybrids, from 2040 to 2030. Evidence shows that there is support for such measures, but that barriers remain in place before fleets can confidently make the switch to electric vehicles The UK government is seeking to phase out petrol and diesel powered vehicles to get everyone into electric or other zero emission vehicles in order to reach its net zero emission targets by 2050. Recent reports suggest that the government is set to bring forward the ban on sales of new internal combustion engine (ICE) vehicles, including hybrids and plug-in hybrids, from 2040 to 2030. It comes following a concern voiced by the Committee on Climate Change (CCC) that the original 2040 date wasn’t soon enough to meet the net-zero target. Evidence shows that many in the fleet and road transport industry are willing for this to happen. According to the results of a GreenFleet poll ran at the JUICE online event on 30 July, the overwhelming majority of delegates (96 per cent) believed that ending the sale of new ICE cars and vans could be done before 2040. Half of the respondents thought that the ban should take effect by 2030, 20 per cent thought it would be feasible by 2035, and twelve per cent thought that 2032 is achievable. Twelve per cent meanwhile thought it would be possible to bring the ban into effect earlier than 2030. Only six per cent said that 2040 is when the ban should come into effect. Many organisations have electric vehicles on their fleet, and there is a rising trend for large fleets to make public commitments to transition their fleets to zero emission vehicles, to show to industry and government that demand is there. However, the issue of charging infrastructure comes up as a barrier time and again. Sir John Armitt, Chair of the National Infrastructure Commission (NIC), told GreenFleet: “Electric vehicles are now a realistic option for many drivers and businesses as the technology matures and manufacturers invest in new models. But if we’re to get close to 100 per cent electric new car and van sales by 2030 – which our National Infrastructure Assessment says is achievable – then a major barrier to changing behaviours has to be addressed: range anxiety. “There is a straightforward solution. Government should build on the steps it has already taken to boost take-up and commit to a national rapid-charging network. This

would allay the entirely understandable fear many drivers have of being left without power far from home, with nowhere to plug in and quickly charge up. Subsidising chargers in rural and hard-to-reach areas where the market is unlikely to deliver in the short term is a good place to start. But progress also means getting councils to set-aside more of their parking spaces for future conversion to charge points, and making sure the electricity grid is optimised for this growth in demand. “The government’s national infrastructure strategy, expected this autumn, is a great opportunity to commit to this approach and send a clear signal to drivers that the UK’s roads are ready for an electric future.” It is not just the limited number of public charge points that is cited as an issue - its the network’s ease of use that is also a hindrance. Drivers currently still often need to use multiple apps and cards to pay to charge on different networks. This can lead to what Zap Map has called ‘charger anxiety’ – concern about being able to access the right charge point when needed. In a recent survey of the GF100 Most Influential - a cross-industry group of individuals who have all helped shape the low-carbon transport agenda over the year, 23 per cent (the majority) said that the uptake of zero emission vehicles is hindered by the lack of public charging and its difficulty of use. In an attempt to boost the UK’s charging infrastructure, in January this year the Government doubled its EV charger fund allocation to £10 million

Fleet demand Many fleets are already on the journey to switching their fleet to zero emission vehicles, and many have made public commitments to electrify their fleets in the coming years. Environmental charity Global Action Plan started the Clean Van Commitment, which is a public pledge to move to zero emission vans in cities by 2028. Signatories to the Clean Van Commitment include ENGIE, Tesco, Network Rail, London Borough of Tower Hamlets. The Climate Group meanwhile commenced EV100, where companies make a public commitment to integrate electric vehicles into their fleets or to install charging infrastructure. The Climate Group has also launched the UK Electric Fleet Coalition, which aims to provide a strong and positive message to government that some of the biggest companies in the UK are prepared and eager to make the transition to electric vehicles, but they need that ambition matched by the government. Founding member of the UK Electric Fleets Coalition, Openreach, has one of the UK’s largest fleets with around 27,000 vehicles. In a move that kicks off its electric vehicle ambitions, the company has recently placed an order of 270 fully electric Vivaro-e vans and nine Corsa-e cars. EV100 signatory Mitie has reached a major milestone in its electric vehicle rollout, having taken delivery of its 250th electric vehicle. However, Mitie has pointed out that there needs to be more charge points – both on-street residential and rapid chargers as well as greater availability of larger electric vans before it can meet its pledge to convert its entire fleet to electric by 2030. Simon King, director of sustainability and EV strategy at Mitie, said: “As this important milestone shows, our electric vehicle commitment is picking up pace as we rapidly rollout electric vehicles all over Britain, putting 75 new EVs on the roads every month. However, if the UK is going to meet crucial targets to reduce carbon and minimise the effects of climate change, we need more businesses, like Heathrow Airport, as well as government departments and city councils, to join us in the switch to electric vehicles. The first step to achieving this is ensuring an adequate number of charge points, in the places where they are needed most, are installed all over the UK, so that drivers are sure they can charge where and when they need to.” E Issue 129 | GREENFLEET MAGAZINE

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 Eliminating emissions from vehicles The ban of the sale of new petrol and diesel vehicles has concentrated the efforts of vehicle manufacturers to produce zero emission vehicles, with most auto-makers having an electrified variant out, or soon to be out. Despite upheaval caused by the Covid-19 pandemic, 2020 to date has been positive for the electric car market. According to SMMT figures, registrations for pure-EVs in the first eight months of 2020 are up 157 per cent compared to 2019. More than 44,700 pure-EVs have been sold in 2020 to the end of August. Looking at all plug-in vehicles, that figure rises to over 74,500 units. Globally, Deloitte has adjusted its market predictions to say that by the end of the decade, a third of all new car sales worldwide will be electric. This would bring the total number of electric vehicles sold in a single year to 31.1 million globally; ten million more than previously forecast. EV sales are still expected to reach 2.5 million worldwide in 2020, despite disruption from Covid-19. Based on a compound annual growth rate of 29 per cent, Deloitte’s research estimates this to top 11.2 million in 2025 and 31.1 million by 2030. At this milestone, fully electric vehicles will account for 81 per cent of all new EVs sold according to the research, outperforming their plug-in hybrid peers. A current issue cited as a barrier to electric vehicle adoption is their high upfront cost. But with any new technology, there is a high price tag until economies of scale are realised. Jamie Hamilton, head of electric vehicles at Deloitte, commented: “The price premium attached to many electric vehicles restricted some early adopters but, as the cost of EVs have converged with petrol and diesel equivalents, the pool of prospective buyers is set to increase. A wider range of new electric vehicles, combined with a growing secondhand market, means EVs are becoming a more viable option for many. However, overcoming consumer concerns around driving range and perceived lack of charging infrastructure will be important factors as more drivers consider the practicalities of switching to electric.”

WHEN SHOULD THE ICE BAN TAKE EFFECT?

“Electric vehicles are now a realistic option for many drivers and businesses as the technology matures and manufacturers invest in new models. But if we’re to get close to 100 per cent electric new car and van sales by 2030 – which our National Infrastructure Assessment says is achievable – then a major barrier to changing behaviours has to be addressed: range anxiety.” — Sir John Armitt, Chair of the National Infrastructure Commission (NIC) Availability of vehicles While the electric car market is growing, a limited choice of EVs is another issue cited by fleets as a barrier. What’s more, for those electric models that are out, fleets have been put off by long waiting times. Last year, it was reported that popular electric models had lead times of more than one year as demand outstripped supply However, in April, What Car? conducted analysis of all 26 electric models currently on sale and showed that lead times had fallen dramatically, with the majority of new electric vehicles now available within 12 weeks. Steve Huntingford, editor of What Car?, said: “As the new car market recovers from the coronavirus crisis, many of the most popular electric vehicles can be delivered as quickly as a petrol or diesel vehicle, which is a real boost for prospective buyers keen to get on with electric motoring.” The analysis showed that the Kia e-Niro had a waiting list that extended to more than a year, and is now available within 26 weeks. The availability of large electric vans has been brought up as an issue, with many fleets lamenting that what’s on the market is unable to meet their range and cargo requirements. Mitie’s Simon King told GreenFleet last

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2030 Earlier than 2030 Poll results from the JUICE event on 30 July

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50%

September that in order to electrify its entire fleet by 2030, then “we need to see real, viable alternatives to diesel models for our larger van fleet. At the minute, there’s nothing out there, meaning we have some 2,000 vehicles that can’t yet be switched to electric”. However, a number of vehicle manufacturers have announced they are introducing electric vans to the market, of varying size and range. Creating jobs Labour has recently called on the government to end the sale of new petrol, diesel, and hybrid cars and vans by 2030, saying not only will it help cut emissions and reduce air pollution, but it will also create jobs. Matthew Pennycook MP, Labour’s Shadow Minister for Climate Change said: “2030 is an ambitious but achievable date by which to phase out the sale of new petrol, diesel, and hybrid vehicles, one that would give a new lease of life to the UK car industry, whilst combatting climate breakdown and cleaning up the air that dangerously pollutes so many of our towns and cities. “But as well as accelerating the phase out, the Government must also set out a credible plan to get there – one that backs the low-carbon jobs and industries of the future and ensures that workers and communities are properly supported in the transition to a fairer and cleaner economy. “It’s time for Ministers to seize this opportunity as part of a world-leading green recovery from the coronavirus pandemic, creating good jobs across the country, and generating real momentum for next year’s COP26 climate summit.” With Boris Johnson due to announce that the new petrol/diesel vehicle ban will be moved forward to 2030, the time is ticking for those involved in moving goods and people to switch to zero emission vehicles. Appetite is high amongst fleet operators, as we have seen in this report, and all that stands in the way is to overcome certain barriers; namely ensuring a fast and convenient charging infrastructure is in place, growing the choice list of EVs, especially larger vans, reducing waiting times for vehicles, and bringing upfront costs down. L September 2020 | COMMERCIAL GREENFLEET

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Alex Haffner, strategic insight manager at National Grid ESO, shares insights from the 2020 Future Energy Scenarios report, which for the first time reflects net zero targets in its predictions ©EVclicks

The use of electric vehicles (EVS) is and, even in the slowest decarbonising rapidly growing. By 2040 we could see scenario, there will be no new cars sold over 30m electric cars on UK roads. with an internal combustion engine after In 2019, battery electric vehicles (BEVs) 2040. This results in all cars on the road and plug in hybrid electric vehicles being ultra-low emission by 2050. (PHEVs) made up just over three per Our fastest decarbonising scenario sees a cent of all new vehicle sales. 75 per cent reduction in total energy demand While overall numbers of EVs are low, the for road transport due to a combination of recent increase in sales has been steep electrification, automation and and gives us a strong indication changing consumer behaviour. that they will continue to One of the interesting A grow, reinforced by changes aspects of the road smart in company car tax in transport scenarios c harging April 2020 that further relates to the number will dec system incentivise EVs as of vehicles. Our company cars (which research shows the is the b ide when e s make up nine per cent gradual transition t t i m charge e to of cars on UK roads). to BEVs in every a vehicle n electric There are several scenario out to reasons for this increase 2050. We have time-of based on in popularity. They are approximately 32 -use tar iffs cheaper to run, maintain million cars on the and of course better for the road now. Our population environment. The idea of electric is predicted to grow but cars being slow has been extinguished the number of vehicles doesn’t with the success of Formula E and even some necessarily grow with it. With the use of sportscars now being electrically powered. autonomous vehicles (AVs) commonplace (potentially as many as 6.3m) by 2050, our Electric Vehicles and our Future modelling has assumed that in some cases Energy Scenarios (FES) AVs might reduce the total number of vehicles, We recently published our 2020 Future dependent on the level of societal change and Energy Scenarios. For the first time, we have an increase in the use of public transport. explicitly reflected net zero in the analysis An example of this is how some – with three scenarios demonstrating consumers may decide to rely on ride how the UK can meet net zero by 2050. hailing services or other forms of mobility Electrification is key to decarbonising transport rather than owning a personal vehicle.

The rapid change in consumer behaviour could also see demand for public transport increase. Buses will be mainly electric, but also green hydrogen (this is where hydrogen is created from renewable electricity via electrolysis). In our scenarios, the UK government supports decarbonisation of buses, cars, vans and HGVs, which mean all vehicles quickly switch over to zero emission alternatives. We capture the growth in electric cars and anything which impacts the GB energy system within our future energy scenarios.

Written by Alex Haffner, strategic insight manager at National Grid ESO

EVs and the impact on the energy system

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ENERGY

Road haulage The distances covered by lorries and the capacity and weight of the battery are challenges to using electricity for road freight. Gas, whether biomethane or hydrogen fuel cells, is an alternative, but there is currently an inadequate supply and no refuelling network. As lorries move goods across borders, solving this part of the puzzle relies on international compatibility as well as innovation in truck design and improvements in complementary infrastructure like rail and refuelling points. Hydrogen is the most common solution for trucks in all the net zero scenarios. Electrification is greatest in Consumer Transformation but is limited by high infrastructure costs for HGV charging facilities (such as catenary wires on motorways), and current weight and volume considerations mean batteries are not feasible for the largest vehicles. Smart charging Today, most EV owners plug in their vehicles only when they need to charge, regardless of the time of day. In future, EV owners will be encouraged to keep their vehicles plugged in. A smart charging system will decide when is the best time to charge based on time of use tariffs designed to encourage charging when there is excess renewable energy and to avoid charging at times of peak demand. This will help network operators to manage electricity supply and maximise use of renewable resources. Additionally, Vehicle-to-Grid (V2G) technology will enable the car to provide energy storage. This could store electricity in the home (for example, from solar panels), or even generate income for the owner, as the EV’s battery is available to store excess renewable generation or to feed its charge back on to the local network during peak demand. As long as the car is plugged in, this resource can be remotely accessed, with little owner intervention required. In the case of AVs, their capacity for V2G could mean that they are directed to parts of the grid further away, to support a network fault. Of course, there will be occasions when the car needs to be charged at a certain time. But most people’s car usage is fairly predictable and, by making sure that car charging infrastructure is available at places of work as well as home, V2G could reduce the running costs of the car and the network. L FURTHER INFORMATION www.nationalgrideso.com/futureenergy/future-energy-scenarios

September 2020 | COMMERCIAL GREENFLEET

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Electric Vehicle Special Written by Jamie Hamilton, head of electric vehicles at Deloitte

EV MARKET

Electric vehicles expected to account for a third of the market by 2030 Despite the impact of Covid-19, the electric vehicle market’s collective accomplishments over the past two years signal a pattern of ongoing growth, which is expected to continue over the course of the next decade. Jamie Hamilton, head of electric vehicles at Deloitte, explains further Before the COVID-19 pandemic shook up the automotive industry, electric vehicles (EVs) were moving steadily into the spotlight. So much so, a milestone was reached in 2019 when the combined annual sales of battery electric vehicles and plug-in hybrid electric vehicles tipped over the twomillion-vehicle mark for the first time. Despite the impact of COVID-19, the EV market’s collective accomplishments over the past two years signal a pattern of ongoing growth, which is expected to continue over the course of the next decade. In Deloitte’s latest insight report, our global EV forecast is for a compound annual growth rate of 29 per cent achieved over the next ten years. This would see total EV sales growing from 2.5 million in 2020 to 11.2 million in 2025, then reaching 31.1 million by 2030. On this trajectory, EVs would secure approximately 32 per cent of the total market share for annual new car sales by the end of the decade.

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The UK will be at the forefront when considering the switch to full electric. of the electric revolution Major investment in infrastructure and In the UK, a mix of favourable government overcoming consumer concerns around the policies and greater consumer awareness availability and accessibility of charging on climate change have been facilities is vital in order for the UK catalysts for EV growth to to keep pace with the leading date. With ambitions to EV regions. However, once the E ncoura meet wider net zero necessary infrastructure is g uptake ing emissions by 2050, and in position, other factors of electric a proposed ban on mean that the UK is well vehicles the sale of polluting placed to see demand w ithin th vehicles brought shift beyond early e fleet market forward to 2035, adopters, reaching wider w i driving ll be a key the stage is set for segments of the market force o further adoption. and potentially surpass f EV growth Deloitte’s analysis the 32 per cent global EV in found that 50 per cent market share by 2030. the UK of UK consumers would consider an EV as their next Companies have an vehicle purchase. However, 33 important role to play per cent indicate that a lack of charging Sales of new cars to businesses represents infrastructure remains the greatest concern a significant proportion of all cars sold,

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standing at 62 per cent of all new cars sold in the UK in 2019. Encouraging uptake within the fleet market will therefore be a key driving force of EV growth in the UK. We are already seeing many businesses support the transition to electric. Having a clearly defined ‘purpose’ continues to top of the corporate agenda, with an increasing number of companies seeking to differentiate and demonstrate how they can act as a force for positive change. With travel often a major, and very visible, contributor of businesses emissions, more are considering how they can support a shift to electric vehicles. Traditional company car schemes are often seen as one policy ripe for reinvention, with companies finding that there are not only emissions savings, but also cost savings and improved employee satisfaction through the provision of cash and or broader mobility options. Increasing business commitment to EVs is demonstrated through the numbers signing up to the Climate Group’s EV100 initiative; a public pledge to accelerate the transition to electric. To date, 67 companies from across the world and differing industries have signed up, representing over US$880 billion in revenue and 3.4 million employees. EVs more attractive due to financial incentives The reduced environmental impact of EVs make their widespread adoption a necessary step towards achieving the UK’s climate change goals. In addition to pledging to reduce emissions as part of the Paris Agreement, the UK has also committed to a ‘net zero’ target for greenhouse gasses by 2050. To achieve this, emissions from across the transport industry, now the highest emitting sector in the UK, will need to be tackled. Targeting corporate fleets has the potential to displace the maximum amount of fossil-driven miles, making these ‘net-zero’ targets more achievable. In order to encourage fleet transition to electric, favourable tax rates have been introduced in the UK that make EVs more financially appealing. New company car tax rates that came into effect from April 2020 have seen the lowest rate of company car tax available on electric vehicles reduced from 16 per cent to 0 per cent. Earlier this year, companies and their employees were given clarity over the length of time that this incentive would be available as the government confirmed that the maximum rate of tax for fully electric cars will be limited to just two per cent in the next five years. As a result, businesses can currently offer EVs to employees cheaper than petrol or diesel equivalents, resulting in major financial benefits to both the employee and the company, whilst also contributing to the reduction of businesses’ environmental impact. Based on our calculations, an employee could experience savings of 95 per cent and above over a four-year period by choosing an EV as their next company car instead of a diesel of comparative value. Meanwhile, a company operating a large fleet (of 900 vehicles

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In order to encourage fleet transition to electric, favourable tax rates have been introduced in the UK that make electric vehicles more financially appealing or more) could benefit from savings in excess of £1.9 million annually by changing the profile of their fleet to electric. Transitioning your fleet to electric requires careful planning The tax rates available on EVs offer an opportunity for businesses to achieve their emission and sustainability commitments, whilst also realising considerable monetary savings. Although uptake of the scheme has been slowed by COVID-19, we expect it to be an increasingly attractive option for employers and employees in the future. There are several factors businesses should consider before making wholesale changes to their employee benefits and mobility schemes. One such consideration is the viability of using EVs if employees are required to travel long distances on a regular basis, with ‘range anxiety’ superseding the cost benefits offered by this scheme. Another is the fact that most businesses, currently, do not yet have the infrastructure in place to support a large switch to EV. Significant improvements will be required to make this viable in many workplaces, including investment in on-site charging points. From an HR perspective, it is also important to consider whether salary sacrifice for EVs will actually work as an attractive benefit

and a way of switching people from older private cars to newer EV company cars. Given the potential level of savings available, businesses should consider the way in which they provide EVs in order to share savings with employees and maximise the potential benefits of any new arrangements. From a financial perspective, changing the profile of a fleet to electric is appealing. But with the majority of savings currently coming from tax and social security efficiencies, many businesses will need to seek out specialist tax advice to maximise their benefits and ensure they are compliant. Fleet providers will also need to consider the structure of their portfolio in the short to medium term as EV residuals normalise. A large take up of EV could bring added risk to their ability to achieve desired residual values. Once these, and other factors are taken into account, then businesses can look to develop their longer-term fleet and EV strategy in partnership with experts to ensure that it will be both cost effective and deliver on wider operational, employee and environmental objectives. L FURTHER INFORMATION www2.deloitte.com

September 2020 | COMMERCIAL GREENFLEET

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GreenFleet Talks

Electric vehicles GreenFleet

TALKS with 0Zone’s Lee Brown

GreenFleet’s Kate Armitage talks with Lee Brown of OZone, turning their attention to the future, and asking what more needs to be done by Government and industry to make sure fleets are ready for 2035 and beyond.

GF Driving e-Mobility 10

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ELECTRIC VEHICLES

Electric Vehicle Special

EXPERT PANEL A number of large companies have made public commitments to switch to zero emission vehicles, with many already on that journey. But barriers still need to be overcome to ensure those who want to switch to electric vehicles, can. Our panel of experts discuss the challenges on route to zero-emissions Gill Nowell, director, EVA England Gill has worked on EV-grid integration projects since 2012. She works for ElectraLink, the UK’s Energy Market Data Hub, on data-driven solutions for a more flexible, smarter energy system. Gill is a Board member of Electric Vehicle Association (EVA) England, a consumerfocused organisation offering a voice to EV drivers in England, and runs EVclicks – a free, open source library of EV images. Gill is an EV driver and smart charger.

Lee Brown, head of 0Zone, The Grosvenor Group Lee Brown is head of 0Zone, the Grosvenor Group’s innovative and market leading solution to help companies navigate their way smoothly towards ultra-low emission and electric vehicles. Lee is also managing director of Interactive Fleet Management, the Grosvenor Group’s specialist fleet management business, which means he brings a perfect balance between how fleets can drive down their emissions and the implications of policy setting. Lee joined the Grosvenor Group in 2001, became finance director of Interactive Fleet Management in 2012 and managing director in 2020, and is well-known for his clear and inciteful advice for companies with car and light commercial vehicle fleets.

Dean Hedger, EV new business development manager, The AA Dean joined the AA in 2018, and, most recently, took on an EV advocacy role. In collaboration with the AA’s senior management team, Dean is delivering new product and services innovation, focusing on EV capability in managed services, customer experience and digital integration.

There is a trend for companies with large fleets of vehicles to make public pledges to electrify their fleets, to show industry and government that the demand is there. The Clean Van Commitment, for example, is a public pledge to move to zero emission vans in cities by 2028. Led by charity Global Action Plan, signatories include ENGIE, Tesco, Network Rail, London Borough of Tower Hamlets. The Climate Group meanwhile commenced EV100, where companies are invited to make a public commitment to integrate electric vehicles into their fleets or to install charging infrastructure at premises for staff and customer use. The Climate Group has also launched the UK Electric Fleet Coalition, a group of companies that are eager to make the transition to electric vehicles, but have voiced that they need their ambition matched by the government. Founding member of the UK Electric Fleets Coalition, Openreach, has one of the UK’s largest fleets with around 27,000 vehicles. The company has recently placed an order of 270 fully electric Vivaro-e vans and nine Corsa-e cars to kickstart its journey to an electric fleet. These public pledges from businesses show that the appetite for electric vehicles is there. But barriers still need to be overcome to ensure those who want to switch to EVs can. Lee Brown, head of 0Zone at the Grosvenor Group, said: “The key concerns, when you talk to companies with vehicle fleets, are typically the same. Is the infrastructure ready? Can vehicles with a limited range meet the needs of the corporate market? Are the electric vehicles on the market fit for purpose to enable employees to carry out their jobs? “The Government has placed huge financial incentives in place to draw both drivers and companies towards electric vehicles. It has also put conditions in place to ‘force the hands’ of the motor manufacturers to produce electric vehicles, and it is continuing to invest in the charging infrastructure. “You might argue that the Government could always do more, but we can clearly see a shift towards EVs taking place.” Gill Nowell, director of Electric Vehicle Association (EVA) England, comments: “The benefit in kind tax advantages available for company car users has been, and is, E September 2020 | COMMERCIAL GREENFLEET

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Electric Vehicle Special

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 a huge boost for EV uptake. This is exactly the kind of materially effective incentive that should be sustained by government. Underpinning such incentives needs to be reliable and accessible information on EVs and associated charging options. “Electric cars should be seen as the ‘go to’ option for fleets and company car users, as well as domestic drivers. Publicly available charging infrastructure needs to continue to grow - payment options need to be streamlined, personal safety for those charging at night in remote locations, accessibility and reliability are key priorities that are and should remain at the forefront of both Government and industry agendas.” Dean Hedger, EV new business development manager at the AA, believes there is a some way to go before universal adoption of alternative fuelled vehicles (AFVs) can be achieved. He explains: “Batteries, range, payload and charging infrastructure are just a few of the areas which will need to develop significantly to ensure widespread AFV usage. While there are more models coming to market over the next 24 months, the availability of batteries remains a key challenge. We’ve called for UK investment in gigafactories to keep up with demand and improve supply of batteries. It would be good to see bold steps being taken in this area. “Ensuring our grid infrastructure is fit for purpose is key for guaranteeing access for all to UK-wide charging infrastructure. Similarly, across all AFVs, a far wider choice of suitable vehicles has to be made available. “From government, the scrapping of VAT on AFV sales and the removal of the ‘premium

VED rate’ would go a long way towards increasing adoption. Scrappage schemes and incentivisation to invest in workplace charging could also play a part. Meanwhile. the leasing of infrastructure could reduce business investments in this area.” Dean also believes that organisations need a greater understanding of how they can develop their fleet. “Undertaking research into areas such as whole life costs and total cost of ownership, while examining how vehicles are used and driven, will help fleet managers see what type of AFVs could easily be introduced into their fleets,” Dean comments. The contract hire and fleet management sector is vital for encouraging customers into electric vehicles, believes Lee Brown, and the sector could play an even bigger role. He says: “At Grosvenor Leasing, our 0Zone team is dedicated to supporting businesses through the transition to electric vehicles and I firmly believe that this has been instrumental in EV adoption rates across our client base. If we were to sit back and do nothing I don’t believe progress towards a zero emission future would be as quick throughout our customers’ businesses. “The leasing sector contributes towards a huge proportion of new vehicle registrations in the UK market and, if I was in Government, I would put incentives in place which reward those leasing companies that place orders for EVs so that they, in turn, encourage their customers to move to zero emission fleets. “Looking at Grosvenor’s latest order bank stats, EVs and hybrids make up over 50 per cent of our car order intake at the moment and I firmly believe that this is down to the

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advice, support and guidance we have given to our customers over the last three or four years, and the work we have been doing developing low emission policies for them.” What about hybrids? The government announced earlier in the year that it would also ban plug-in hybrid cars and vans (PHEVs) alongside ICE vehicles, which took many by surprise. The concern with PHEVs its that there is nothing to ensure drivers charge them and maximise the use of the electric range - instead using mainly the ICE engine. This would, for obvious reasons, hinder the government’s net zero plans. However, many in the industry believe that PHEVs are the ‘stepping stone’ needed as the UK transitions to electric. The BVRLA for examine, has said that the government should only end the sale of new hybrid car and van sales if battery electric vehicle supply, affordability and infrastructure is able to meet the requirements of all fleet segments. Lee Brown comments: “I agree that it’s a bit soon [to ban PHEVs] but if too many drivers are opting for hybrids but then never using their electric capacity then that defeats the object. My suggestion is that this is driven by the Government’s frustration that many drivers have been opting for hybrids to take advantage of lower fuel and tax bills but it’s not truly meeting the emissions objectives. “Rather than ending the sale of new hybrid cars and vans, I believe they can achieve the same results by what they are already


Electric Vehicle Special

doing – which is to make the financial advantages of pure EVs so unequivocally attractive that it makes no real sense to opt for a hybrid compared to an EV. “For a lot of drivers who choose hybrids, it’s a cultural thing. They’re making a half step towards EVs by moving to ultra-low emission vehicles without the range anxiety. Perhaps now more of us are working from home and replacing long travel to meetings with the ability to see customers and prospects instantly by Zoom or Teams, that range anxiety will decline and the uptake of EVs will increase.” Dean Hedger points out that PHEVs are preferable to old, polluting cars, while EV technology is growing: “Plug-in hybrid vehicles (PHEVs), which are often cited as a stepping stone to full AFV adoption, are not in all cases used optimally and to their full effect. This is due partly to a lack of education, and so in some cases PHEVs are gaining an unfair reputation for inefficiency. Nevertheless, their higher payloads when compared with EVs mean they are still preferable to the older, more polluting vehicles they have been designed to replace, at least while we wait for zero emissions technology to catch up. Where full EV adoption isn’t yet deemed desirable or possible, a PHEV makes an attractive alternative. For example, a PHEV, which can do around 25 miles on battery alone will emit 49g/km CO2, attracting a BiK rate of just 12 to 14 per cent. “However, with many different models for sale on the market – mild, self-charging and plug-in hybrids – the potential for confusion among business and consumer purchasers is high.” Gill Nowell meanwhile believes that while plug-in hybrid electric vehicles are a useful stepping stone to fully battery electric vehicles, action to mitigate the climate emergency cannot wait. In a survey conducted by EVA England in response to the government consultation on

the phase out date for new sales of petrol and diesel cars and vans, 82 per cent of respondents in England believe the phase out date for ICE sales should be moved to an earlier date than 2035, with 65 per cent of respondents in England supporting a 2030 phase out date. On the question of what should be included in the ban, 97 per cent of participants indicated that new diesel cars should be phased out. 91.5 per cent of participants included new petrol cars in their phase out definition. 67 per cent of participants included new hybrids in their phase out definition, while 48 per cent of respondents suggested new plug-in hybrids should be phased out. 33 per cent suggested new range extended EVs should also be phased out. Gill comments: “Against the backdrop of these survey results, and speaking on behalf of EVA England here, we understand that many drivers today opt for Plug-in Hybrids, but the urgency of the climate and air quality crises have driven us to take the position that, at the soonest possible date (ideally 2030), only zero-tailpipe emission cars and vans should be sold.” Vehicle to grid Electric vehicles have a hidden advantage inside them – the ability to store electricity. This has the potential to help the grid deal with peaks of demand. During peak times of the day, more electricity has to be generated, and traditionally this uses fossil fuels. But the battery from an electric vehicle could store electricity, ideally from renewable sources at non-peak times, then feed this back power to the grid when it needs it. The vehicle / charger communicates with the grid, and of course, makes sure the battery has a full charge for when it’s needed. Our panelists are in general agreement that this has huge potential for the future, but that the technology is still in its infancy. Lee Brown comments: “This is a rather

exciting concept which has been talked about within the energy sector for a few years now. “The principle of the system is to essentially utilise the huge amount of power stored in the batteries of electric vehicles to cope with spikes in electrical demand across the national energy grid. “This will work via a large smart network which communicates with both the national grid and each individual vehicle, whereby a vehicle (or vehicle charger) may be instructed via the network to reverse its operation and give back some of the energy stored in the vehicle to effectively top up the national grid. “This will be managed in such a way that the vehicle will always be ready and fully charged by the pre-determined departure time which the driver has set. “In terms of advice to our customers, there is very little they need to consider at this stage, however its worth having an eye on future developments and how they may be benefit companies with a large, all electric, vehicle fleet.” Gill Howell says: “Smart charging is a simple and widely available solution for optimising EV use in terms of supporting grid integration, as well as keeping the costs of charging your car to a minimum – some smart charging apps allow the user to opt to charge when there are most renewables on the energy system, for example. “Vehicle to grid is likely to be a viable option for fleet charging and management, however the costs of the kit may currently be on the high side (as opposed to smart charging technologies), given that it is still a relatively nascent technology.” Dean Hedger adds: “There are questions around whether vehicle-to-grid is truly market ready in terms of the number of compatible vehicles currently for sale on the market. Any vehicle you purchase for this purpose must be vehicle-to-grid compatible.E

September 2020 | COMMERCIAL GREENFLEET

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Electric Vehicle Special

Final thoughts Dean Hedger It’s clear that there is a long way to go before universal adoption of alternative fuelled vehicles (AFVs) can be achieved. Batteries, range, payload and charging infrastructure are just a few of the areas which will need to develop significantly to ensure widespread AFV usage. While there are more models coming to market over the next 24 months, the availability of batteries remains a key challenge. We’ve called for UK investment in gigafactories to keep up with demand and improve supply of batteries. It would be good to see bold steps being taken in this area.

 “Further awareness is required around the Whole Life Cost (WLC) equation, including the cost of implementation. More information in this area which goes beyond the upfront investment cost will help fleet managers and business owners to make informed decisions about investing in new technology over the total cost of a vehicle’s working life.” Net zero In June 2019, the UK became the first major economy in the world to commit to bring all greenhouse gas emissions to net zero by 2050. As transport is a major emitter of CO2 and other air pollutants, fleet and transport operators will be expected to transition to net zero operations. But is this an unfair expectation on the sector? Lee Brown believes that we need to have a target to aim for – otherwise there will be no focus. He says: “In my mind, if it drives the UK towards a zero emission future, whether it happens precisely by that date or not is not the issue. It’s more important that we change the negative impact we have been having on our planet and only by setting deadlines will that be given any chance of happening. “If you narrow this deadline down for vehicle fleets, most companies work to a three year replacement cycle. It basically begs the question, therefore, as to whether a company can move its fleet to zero emissions during its next 10 order cycles over a 30 year period. “With the rate at which fleets are now looking proactively at EVs, and ordering them, and the speed at which technology is moving I see no reason why this cannot be achieved in the car sector. “To put technological advances in perspective, the first iPhone was only launched 13 years ago. This triggered a global shift of how we live through our Smart phones and Apps. Technology is moving at a blistering pace, and I find it hard to believe that EVs and the technology to support zero emission travel won’t be ready well in advance of 2050.” A clearer roadmap is needed for fleets to become net zero in their operations, says

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Dean Hedger: “We have consistently called for a phased plan which provides fleets and businesses with the incentives to switch to zero emissions vehicles. If we want to see widescale adoption of zero emission alternatives, we need to provide fleet managers and businesses with a forward-looking roadmap that delivers clarity and plenty of carrots rather than sticks to help them make the change. “There is a big risk for the next few years that operators will decide to hang on to older vehicles longer than they should because they’re cost effective, convenient and fit-forpurpose electric options aren’t at scale yet. We may see the age profile of fleets going up because like-for-like alternatives aren’t available in a cleaner fuel derivative. “To avoid unnecessary business disruption, organisations need genuine choice so they can pick the vehicles and powertrains which are fit for purpose for their individual needs. Integrated transport policies must also provide clarity about what is coming down the track.” Gill Nowell highlights the dilemma facing government between climate targets and the economy. “There is a need to reduce carbon and related emissions to reduce air pollution and to ensure the UK’s compliance with the commitment to Net-Zero greenhouse gas emissions by 2050. On the other hand, Government also needs to consider the concerns of the motor industry and its employees and current non-EV drivers. However, as underlined by the ‘The Road to Zero’, transport greenhouse gas emissions have fallen by only two per cent since 1990 despite all the Government’s initiatives to date, set against the Government’s commitment to achieving net-zero by 2050. “A reconciliation of the environmental and economic issues is, therefore, imperative. Against the backdrop of battery technology development that is advancing apace, costs reducing and range increasing rapidly, I have no doubt that fleets will be have the options available to them such that they will be able to operate within net zero emissions by 2050.” L

DRIVING THE SWITCH TO CLEANER COMMERCIAL FLEETS | www.greenfleet.net/commercial

Lee Brown The leasing sector contributes towards a huge proportion of new vehicle registrations in the UK market and, if I was in Government, I would put incentives in place which reward those leasing companies that place orders for EVs so that they, in turn, encourage their customers to move to zero emission fleets. Looking at Grosvenor’s latest order bank stats, EVs and hybrids make up over 50 per cent of our car order intake at the moment and I firmly believe that this is down to the advice, support and guidance we have given to our customers over the last three or four years, and the work we have been doing developing low emission policies for them. Gill Nowell The benefit in kind tax advantages available for company car users has been, and is, a huge boost for EV uptake. This is exactly the kind of materially effective incentive that should be sustained by Government. Underpinning such incentives needs to be reliable and accessible information on EVs and associated charging options. Electric cars should be seen as the ‘go to’ option for fleets and company car users, as well as domestic drivers. Publicly available charging. infrastructure needs to continue to grow - payment options need to be streamlined, personal safety for those charging at night in remote locations, accessibility and reliability are key priorities that are and should remain at the forefront of both Government and industry agendas.


The journey to electrification is far from simple, but the AA is committed to meeting increased electric vehicle (EV) driver demand. Dean Hedger, EV new business development manager, reports

The drive to reduce the carbon footprint of road vehicles, nationally and internationally, continues to gather momentum. World governments have already committed to ambitious transport targets around climate change, with many using varying combinations of ‘carrot’ and ‘stick’ to encourage both business drivers and private owners to switch to cleaner fuels. In the UK, the February 2020 budget committed more than £1 billion to driver incentivising measures. Some £500m will support the rollout of a super-fast electric vehicle charging network, while the existing plug-in grant has been extended for a further three years to 2023, with £533 million available to support schemes for ultra-low emission vehicles. Meanwhile, homeowners seeking to go electric can also claim a £500 grant towards the installation of a charge point

Committed to meeting increased demand Since lockdown, we have seen an increase in EV interest and sales. Indeed, AA Populus research shows one in five people would buy an electric vehicle to maintain the air quality benefits experienced during lockdown. Digging deeper, our research suggests one in six UK drivers hung up their keys completely in April, while just one in 20 were driving as much as before the lockdown. This led to improvements in air quality, as well as reductions in traffic and congestion. As a result, in May, four fifths of people said they would take action to help maintain cleaner air, suggesting opportunities for business owners and managers to review the make-up of their fleets. As an organisation, we remain power agnostic. That means a deep and continued commitment to ensuring the availability of both the expertise and the technology to meet the needs of fleets and individual drivers throughout their vehicle lifecycle, including electric. Indeed, AA Drivetech provides specific EV driver training. A third of the AA Prestige garage network is already EV capable, and most of our company cars area already EVs or plug-in hybrids. As we develop our expertise, including having the largest group of EV Level 2

trained technicians in the UK, the logical next step is to ensure we can support the infrastructure accompanying EV vehicle adoption. As an example, our partnerships with several electric charging and energy companies, such as SWARCO eVolt, is providing even greater assurance and support for EV drivers. As part of this managed services offer, we will support drivers if they need help at the charge point, handling calls about both the electric car and electric charging infrastructure. Refuelling routines are different for EV drivers, and it’s important they are supported as they adjust to the new methods of charging and driving EV ownership requires. Networks vary widely, as does the charging technology available, hence the understandable confusion new EV drivers often face. World EV Day This autumn, we were a Founding Partner for World EV Day, launched by ABB and Green.TV on 9th September. The event, expected to become an annual celebration of the EV industry, recognises the role reliable and fast charging infrastructure, grid reinforcement and renewable power generation integration must play in enabling a truly sustainable transport ecosystem. Current and prospective EV drivers, alongside local transport authorities and fleet operators, were encouraged to recognise the crucial role they play in driving the shift to sustainable road transport and a zeroemission future as part of a day of global e-mobility appreciation. Technology is moving rapidly and there is now plenty of variety on the market for drivers with diverse vehicle needs, whatever their individual requirements.

Written by Dean Hedger, EV new business development manager, the AA

at their home. For businesses, the good news is that zero emission electric cars were removed from company car tax in Apr 2020, while EVs are exempt from Vehicle Excise Duty (VED). A slight discount of £10 is also available for hybrid vehicles.

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The road to electrification

The road to universal adoption It is clear there is a way to go before universal adoption can be achieved. For adoption to increase, perceptions need to change – but for that to happen, the reality must alter too. Batteries, range, payload and charging infrastructure ae just a few of the areas which will need to develop significantly. That is why simplifying the journey for all EV drivers is a huge priority. We are keen to help both established and new EV drivers get to grips with technology so they can get as much enjoyment as possible from their EV driving experience, ensuring they are fully supported at every mile of their journey. L FURTHER INFORMATION www.theaa.com/business

September 2020 | COMMERCIAL GREENFLEET

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Electric Vehicle Special Written by Gill Nowell, EVA England

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EV DRIVERS

Support for the transition to zero emission transport Gill Nowell from the newly formed Electric Vehicle Association (EVA) England discusses its recent research, which shows people in England are generally in support on phasing out petrol and diesel vehicles in pursuit of cleaner air Registrations of new electric vehicles are But what of charging skyrocketing in the UK. According to figures infrastructure? from the Society of Motor Manufacturers People with off-street parking tend to charge and Traders, July 2020 saw a 259 per cent at home, overnight. For the 40 per cent of increase in new registrations of fully electric households without access to off-street cars and vans, compared with the same time parking, charging hubs and on-street charging the previous year. The total car parc of electric solutions are emerging. Workplace and vehicles (both fully electric and plug-in hybrid) destination charging also have a key role to stands at nine per cent of all car sales in the play in the ‘charging mix’. Motorway service UK in July. Set against a backdrop of charging is set to become more a 97 per cent decline in overall reliable, with updated and new car sales in the UK over ‘partnered’ infrastructure 96 the same period, the appetite being planned to offer per cen for electric vehicles is as more charging stations of respo t ndents clear as the air that we across the UK. agree t hat an would all like to breathe. earlier phase o Electric vehicles u t d a are probably still a te petrol a nd dies of relatively new concept v e h el icles w to many people in the UK. Challenges in in bette ould result r pu perception remain, such health blic as those over range anxiety, cost and purported lack of public charging infrastructure. However, with the vast majority of automotive OEMs committing to electric drivetrains, and new makes and models being launched on an almost monthly basis, the UK has seen the number of electric car options catapult from just a handful a few years ago, to over 100 available to choose from today. In terms of numbers, back in 2013 there were just 3,500 electric cars on UK roads; today there are almost 250,000. Battery size and therefore range on a single charge is increasing, with the majority of models now offering between 100 to over 300 miles of range – with start-up companies such as Rivian in the US promising 400 miles’ electric range for its all-terrain vehicles. And watch out for Lucid Motors, with a purported range of 517 miles on a single charge for its forthcoming all-electric luxury sedan. Safe to say, that the majority of electric cars can now travel around 200 miles on a single charge, and when we consider that most people only drive an average of 25 miles each day, this is more than enough to satisfy most drivers.

DRIVING THE SWITCH TO CLEANER FLEETS | www.greenfleet.net

Electric fleets Fleets of course will have a hugely important role to play in the decarbonisation of road transport in the UK. With company car drivers paying zero Benefit in Kind for 2020-2021 if they choose to go electric, the incentive is demonstrably significant, and presents a great opportunity for fleets to make the switch. The rapidly increasing range and choice of EVs is also a key driver for the transition to zero tailpipe emission transport for fleets, as well as the steady improvement in charging infrastructure. It is evident too, that with the government’s Plug-in Car grant no longer available for plug-in hybrid electric vehicles, more drivers will opt to move to EVs with the associated grant incentive. EVA England Mass adoption of electric vehicles in the UK is becoming a reality. With this in mind, Electric Vehicle Association (EVA) England has been set up. Inspired by similar associations in Scotland, Norway, the Netherlands, Canada and the USA, EVA England is committed to providing a voice for EV drivers in England, with a focus on personal car drivers. The founding group first met in March 2020 before being fully incorporated as a Community Interest Company in early June 2020. The founding Board of Directors is a diverse group from a range of professional and personal backgrounds, with over 15 years’ experience in the EV and automotive industry; all directors are united in the need for a consumer voice for EV drivers in England.


The aims and objectives of EVA England are to promote electric vehicle use in England, as well as promote the environmental and health benefits to the public in England. It also aims to represent the interests of current and prospective electric vehicle drivers in England and serves to provide services to electric vehicle drivers in England. From the outset, EVA England has been keen to accelerate the transition to green mobility to understand the requirements and opinions of EV drivers in England. The immediate need for a unified consumer voice has been further compounded by the powerful influences of the motor, electricity generating and distribution, and renewable energy industries. EVA England survey EVA England has conducted its own survey in order to understand people’s views about the UK Government’s planned phase out date for the sale of new petrol and

diesel cars and vans, with 82 per cent of respondents believing the phase out date should be brought forward from 2035. EVA England’s survey of 1,114 individuals - who were predominately drivers or prospective drivers of EVs, as well as other drivers who have not yet made the change - was designed to inform the organisation’s core views. Responses to the survey were primarily secured in collaboration with the 35-plus regional electric car clubs in England, largely thanks to the EV Groups Nexus. The survey highlighted that 82 per cent of respondents in England believe the phase out date for ICE sales should be moved to an earlier date than 2035, and 65 per cent of respondents in England support a 2030 phase out date. Ninety-six per cent of all respondents believe an earlier phase out would have a positive impact on public health. A majority (72.9 per cent) of survey participants believe that an earlier phase out date would positively affect the UK economy.

Safe to say, that the majority of electric cars can now travel around 200 miles on a single charge, and when we consider that most people only drive an average of 25 miles each day, this is more than enough to satisfy most drivers

74 per cent either agree or strongly agree that the motor industry will be able to supply enough electric cars to meet demand. 78.5 per cent of participants do not believe an earlier phase out date would put unfair pressure on the automotive industry and its employees. Based on the results of the survey, EVA England will be encouraging the government to bring forward the phase out date for the sale of new petrol and diesel cars and vans to 2030. Other popular actions highlighted by the survey include the government introducing a scrappage scheme for petrol and diesel internal combustion engine cars, and the continuation of grants, as well as to implement a loan scheme. Implementing a seamless payment scheme for charging would also be helpful, as well as faster investment by local authorities in public charging infrastructure. Respondents were in general acutely conscious of the health benefits of lowering air pollution and the urgency of the UK’s need to meet the 2050 commitment, with 96 per cent of respondents agreeing that an earlier phase out date would result in better public health. EVA England looks forward to continuing to grow and offer a consumer-focused voice to EV drivers in England – and to opening up to members later in 2020. L

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September 2020 | COMMERCIAL GREENFLEET

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Electric Vehicle Special

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ROUNDTABLE Fleet policy for a zero emission future

As fleets are coming to terms with the enduring effects that Covid-19 has had on operations, attention is now turning once again to the long term need to become zero emission. To discuss progress and current challenges, a diverse group of fleets and emission reduction specialists attended GreenFleet’s virtual roundtable on 9 September

One of the few benefits of the lockdown It is clear that lots of planning and analysis earlier this year is the improvement in air is already happening behind the scenes; quality in towns and cities across the UK, including fleet analysis, surveying buildings, with NO2 levels in some London roads understanding power requirements and dropping by 55 per cent according to King’s infrastructure, as well as developing new College London. This has really partnerships and supply chains. A highlighted the dramatic theme throughout the roundtable Whilst impact that road traffic was the need for more flexibility small ele has on air quality, and both in terms of fleet ctric vans ha has propelled the policies and operations. v agenda for cleaner Some fleets, such as derogat e a weight io transportation and the Southern Health n t h at categor zero emission. NHS Foundation Trust, y B licen allows ce hold to drive The ongoing have already updated ers EVs introduction their fleet policies whilst there re up to 4.25t, and extension others have completed a mained some of low emission comprehensive strategy frustratio n over zones across the review, in the case of London vehicle UK has further Ambulance resulting in a choice accelerated the need to fleet plan extending to 2030. align fleet policies around compliance. And the pressure Impacts of COVID 19 is on; some fleets are preparing for a full Speed of response was of paramount ZE Zone in London as early as 2025. importance at the start of the pandemic with

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DRIVING THE SWITCH TO CLEANER FLEETS | www.greenfleet.net

some operators reporting exceptional demand for goods and services. Chris Rutherford, head of fleet strategy at London Ambulance, commented that the service has changed beyond recognition: “The NHS has proved that they can make dramatic changes in a short period of time, decisions are made more agilely, and you can see change happening much more quickly.” The aim is to ensure that this momentum can now be directed towards creating a zero emission fleet. “It is my responsibility to make sure the decisions are the greener options,” Chris added. Servicing and maintenance was identified as another, less obvious, benefit to having battery electric vehicles on the fleet during lockdown: “EVs take nowhere near the effort that petrol and diesel vehicles do when keeping them on the road,” observed Mick Cook from Babcock International. And the electric vehicles were reported to be much more reliable when out on the road; with less moving parts the full battery EVs have less to go wrong.


Specialist vehicles One of the areas where electric vehicles remain problematic is the ability to power auxiliary equipment. Phoenix Medical runs a fleet of large temperature controlled vans for the delivery of pharmaceuticals to wholesale customers. Maxus is one of the few suppliers of large vans that is able to support refrigerated vehicles, allowing the vehicle battery to also run the cooling through a DC/DC convertor. The company’s Mike Haran explained that it reduces the battery voltage to work with the chiller. The vehicle is available in two battery options, the larger battery can do up to 200 miles or a smaller battery might be sufficient for a light payload. Vehicle weight is also particularly important for fleets that carry large volumes of equipment with the observation that vehicles need to go on a diet!

Electric Vehicle Special

On the negative side it was suggested that the inability to test drive vehicles during lockdown may have caused some drivers to defer their decision to switch to electric, preferring to stick with tried and tested ICE or hybrid technology. PHEVs and fleet policy Fleets were urged to think carefully about the inclusion of PHEVs within fleet policies. In terms of weight, cost and servicing PHEVs were described by Sara Sloman, energy & infrastructure specialist at Foot Anstey as “the worst of both worlds”. It was conceded there may remain some limited payload and duty applications where PHEVs may be necessary. Sam Clarke, chief vehicle officer at Gridserve drew some distinction: “From a commercial environment PHEVs have their place [for the shorter term]. From a consumer environment I would see them banned tomorrow as there are BEVs today that are perfectly capable of doing the job.” Chris Rutherford agreed added: “If you need PHEVs for national resilience or particularly big mileage, they have a place in the here and now. As soon as we can phase them out the better, but with the caveat that there has to be suitable full electric drivetrains in place.”

Mick Cook agreed, noting that Babcock reserve the BEVs for jobs that have a lighter load. The choice of single or dual rear wheels also impacts the gross vehicle weight, something that event sponsors Maxus were keen to highlight in their 4.05t electric van. Whilst small electric vans currently have a weight derogation that allows category B licence holders to drive EVs up to 4.25t (higher than the ICE cap of 3.5t), there remained some frustration that the choice of vehicles by payload wasn’t adequate. Chris Rutherford explained that 7t is too big and 3.5t is too small in terms of payload, the target for London Ambulance is 5t. The role of telematics Telematics was a recurring topic, particularly when developing a fleet policy. Phoenix Medical has 80 small vans to be replaced in the next 12 months, and they are hoping to

switch to electric. Sam Clarke, who founded the all-electric delivery service Gnewt Cargo explained : “Telematics is an extremely useful tool to help understand not only what vehicles are doing now, but also what they are capable of doing moving forward. Find the low hanging [BEV] fruit and implement that straight away with a view to improving the fleet over time.” It is important to understand not only what the vehicles are doing when on the road; for electric vehicles the time spent off the road will also help inform the recharging strategy. Event sponsor Quartix is developing an EV tracker that will launch next year. Amongst other suggestions was providing information on plug-in time and energy transfer were highlighted as valuable features. When developing a fleet policy consider a mix of vehicle types; a single or two badge policy may limit the choice or availability of vehicles. Sara Sloman highlighted the choice of vehicles is ever growing and it is importance to experience the different vehicles. Leasing is good for this as the market is changing very quickly. It is vital that fleets understand the data they have, Sara Sloman suggested that telematics providers should invest more time in client care, making sure that fleets are getting the insight they need from the data, beyond equipment, reports and numbers. There needs to be a human side to data. Sean Mahar, head of sales at Quartix agreed: “If the driver understands then you can start bringing around change.” Employee buy-in Revising company car policies are a good first step to getting more ultra-low emission vehicles onto a fleet. This can be challenging, as typically ULEVs have a higher P11D value which may lead to these vehicles being pushed into a premium vehicle banding. However, as the range of EVs E Issue 129 | GREENFLEET MAGAZINE

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Electric Vehicle Special

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GreenFleet roundtable attendees Kate Armitage, chair and GreenFleet ambassador Sam Clarke, Gridserve Mike Cook, Babcock International Mike Haran, Maxus Sean Maher, Quartix Chris Rutherford, London Ambulance Service Sara Sloman, Foot Antsey Martine Smith, Phoenix Healthcare

 continues to grow more affordable options are available. The introduction of 0% BIK tax for fully electric vehicles has also really caught the attention of employees, creating a much higher demand for these vehicles. Martine Smith, Phoenix Medical advised that they are in the process of being reviewing the company car policy with a view to adding more manufacturers. “We are a two badge company, and it hasn’t really worked, and it is not on whole life cost, and that is all being changed,” she said. It is also important to get employee buy-in for essential business users, with advice to get demo vehicles into the fleet as soon as possible and encourage as many drivers as possible to experience zero emission. “Get some demos in, get a bit of buzz around it and you’ll find pretty quickly that all the hurdles that you are expecting are potentially eased because people will genuinely want a zero emission drive,” advised Chris Rutherford. “They will appreciate the lack of vibration because there is no engine [and] how clean it is to fuel.” There was a strong feeling that once employees have gone electric they refuse to go back. Many fleet vehicles are based at the employees home. For employees that have access to off-road parking this can work extremely well, as a home charger is relatively cheap to install (typically £500 with the OLEV grant). The employee will need to be reimbursed for the cost of electricity; HMRC currently recommend a payment per mile for full battery electric vehicles and plug-in vehicles and the fleet policy will need to be updated to reflect this. For employees without off-road parking, access to public charging networks will need to be set up.

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Charging infrastructure Planning the charging infrastructure is essential, and fleets reported being at different stages of the development from initial surveys through to installation. London Ambulance is currently planning a new depot location and the electrical supply capacity (to support DC and AC charging) is a key criteria. For fleets that operate larger vans for 23 hours per day the need for high-power DC Event Sponsor

charging (HPC) up to 350kW charging was seen as essential and could get a vehicle with a 100 kWh battery to 80 per cent state of charge in 20 minutes. However the cost to a fleet of installing HPC is prohibitive; instead public charging on new and existing service forecourts is a popular solution. Gridserve is planning to build up to 100 all electric forecourts across the UK over the next five years; the flagship forecourt is scheduled to open in Braintree, Essex later this year and will feature 12 HPCs. The Gridserve model was received well by the fleets who were keen to understand where these forecourts will be located. In addition to retailing electricity Gridserve has also unveiled partnerships with household brands including WHSmith and Costa Coffee. Sam Clarke noted: “The irony is that we will welcome petrol and diesel drivers because less than one per cent of vehicles on the road are electric and we want them in to realise that they have got the wrong car!” L Event Sponsor

Mike Haran, fleet account manager, Maxus UK

Sean Maher, UK field sales manager, Quartix

Mike has worked in the automotive business for the last 27 years. Wanting to stay at the cutting edge and recognising that electric powered vehicles was the way forward, Mike joined LDV/Maxus in late 2019. Mike is responsible for key fleets for Maxus.

Sean Maher is UK field sales manager at Quartix. He has been with Quartix for 11 years and in vehicle tracking for 18 years. Sean’s experience enables him to understand customer needs and help companies realise the savings that can been seen from operating a vehicle tracking system.

DRIVING THE SWITCH TO CLEANER FLEETS | www.greenfleet.net


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More choice for businesses looking for a greener fleet 2020 has heralded the start of a new era in which MAXUS (formerly LDV) can offer customers even more variety in terms of zero emission commercial vehicles

Experts estimate that there will be 140 million electric vehicles on the road globally by the end of the decade as a direct result of governments signing the 2030 Paris Climate Agreement. This means that in the next ten years, combustion engines will be phased out and everyone – businesses included – will have to think practically and seriously about greener transport options. MAXUS has become a favourite with business owners and fleet managers across the UK who want to make the switch to electric LCVs. The range, reliability and versatility of MAXUS vans are key to their popularity, but most important is its focus on customer service and the support customers get from the MAXUS dealership. MAXUS is distributed by Harris Automotive Distributors and is supported by a nationwide dealership network across all seven territories in right-hand drive markets in Europe. It believes that offering a specialised service that helps customers navigate the switch to electric driving is an integral part of the business. 2020 has been an historic year for MAXUS and, having rebranded from its original LDV moniker in April, MAXUS launched the newest EV in the brand’s stable, the e DELIVER3, which is the first van in the MAXUS portfolio that will not offer a diesel engine alternative.

The e DELIVER3 has it all when it comes to offering the customer the pure driving experience and at incredible value with prices from £22,800 with an approved UK government electric vehicle grant ex. VAT. The MAXUS e DELIVER3 is a fully electric small van of zero emissions with a remarkable range, clocking up to 198 miles (NEDC) / 150 miles (combined WLTP) on a single charge (52.5kWh battery). The eDELIVER3 joins its ‘big brother’ the EV80 in bringing an outstanding range of zero omission LCV options to fleet managers and business owners right across the country. The MAXUS e DELIVER3 is available in three variants with two wheelbase options: a short wheelbase panel van, a long wheelbase panel van and a long wheelbase platform chassis. Mark Barrett, GM of Harris Automotive Distributors UC (MAXUS/LDV), sums it up nicely: “For MAXUS, this latest addition to our electric range is proof that green motoring is the future, and the future is now. As part of our commitment to a green motoring industry, we work hard to ensure the right support infrastructure is in place for both current and future customers. “Charging points are the key to supporting EV drivers, and without those supports in place, there can be no motoring revolution. It’s something we take very seriously and urge governments to

prioritise in the coming months and years, especially as 2030 targets loom closer.” Over the last few years, MAXUS (formerly LDV) has been paving the way for the development of the commercial EV market in the UK and Ireland, following the launch of its first electric van, the LDV EV80 in 2016. Designed with zero emissions technology together with advanced electric power systems and boasting a 120mile range on a single charge, the EV80 was predicted a game-changer among industry experts. This proved to be true. Now, the LDV EV80 remains a reliable choice for fleet drivers and decision makers who want to avoid hefty congestion charges, future-proof their business and join the green revolution. This means the natural next step for the MAXUS brand was to extend more choice to customers. With the launch of the e DELIVER 3 and soon the all new e DELIVER 9 with many variants and battery size options, there is now even more choice for businesses looking to invest in a green fleet. The name behind MAXUS Innovative, thought-leading and futurefocused, Shanghai Automotive Industry Corporation (SAIC) is the name behind MAXUS and is the largest automotive company in China. Based in Shanghai, SAIC produces almost seven million vehicles each year for both domestic and international markets and is a Fortune Global 500 listed company of almost 100,000 employees. The Harris Group acts as sole distributor for SAIC in the UK, Ireland and across right-hand drive Europe. SAIC has several well-known brands within its portfolio including, since 2010, the acclaimed MAXUS range of LCV’s. SAIC has invested more than €2billion in this brand, with a strong focus on safety, innovation and the introduction of new products to the range, including a suite of EVs that are already setting the standard for the future of eco-fuelled commercial motoring. The e DELIVER3 is the latest addition to this ever-growing suite. MAXUS is supported by an experienced, customer-focused nationwide dealership network. L FURTHER INFORMATION www.saicmaxus.co.uk

Issue 129 | GREENFLEET MAGAZINE

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