Almost a third of fleet managers are not aware of the revised benefit-in-kind (BIK) rates for electric vehicles (EVs), according to a new study from Go Ultra Low.
The survey, commissioned in partnership with Energy Saving Trust, found that 32% of fleet managers did not know that EVs attract no BIK in the current tax year and just 1% next year.
With Britain’s fleet sector accounting for 53.3% of last year’s 2.3m vehicle registrations, it is a pivotal player in accelerating EV adoption.
Half of UK fleet managers are expecting an accelerated uptake of electric company cars as a result of the new BIK rates.
Tim Anderson, group head of transport at Energy Saving Trust, said: “As an industry, as we continue to navigate the impact of the Covid-19 outbreak, there has never been a more imperative time to support the drive to mass EV adoption – one that will be both financially and socially advantageous for companies.
“When it comes to recognising the role and value of EVs, fleets are ahead of the curve. The lower Benefit in Kind rates will enable company car drivers to enjoy very low tax rates and accelerate the transition to clean transport. Yet, there remains further efforts to be made.”
The survey revealed that one in three UK fleet managers expect half of their company car fleet to be electric by 2025, and seven in 10 fleet managers are preparing to buy an electric car within two years.
According to the survey, the three key factors that inhibit EV adoption amongst fleet managers include the elevated price point of electric vehicles (47%) and their limited range (51%), as well as a lack of chargepoints (56%). In fact, 40% of respondents had no charging provision at work so were reliant entirely on public infrastructure.
Poppy Welch, head of Go Ultra Low, said: “The Government’s Benefit-In-Kind tax incentives are helping to shift behaviour around company fleets and the car industry is supporting with exciting products. There are around 60 electric models now available and most are able to travel more than 200-miles on a single charge. The decisions fleet managers make about EVs today will be critical in driving mass adoption tomorrow.
“The UK now has more than 31,000 public chargepoint connectors, and an additional 500 chargepoints are installed each month, but we still hear from businesses that charging infrastructure remains an area of frustration.
“Fleet depots and rental branches, for example, often need to negotiate complex terms with landlords, electrical consultants and energy providers to install their own chargepoints. That’s why we’re developing a series of fleet-specific initiatives with the help of the Energy Saving Trust, to provide companies with the information and advice they need to make the transition to electric as seamless and cost-effective as possible.”
This summer, Go Ultra Low and the Energy Saving Trust will launch a digital Fleet Solutions Pack, helping companies make the switch to EVs.