Although the UK considers itself a global leader in adopting electric vehicles (EV) and has shown a huge commitment to various Green policies, it has been put in the shade by Northern Europe when it comes to transitioning to EVs, according to a new study. The Ayvens Mobility Guide 2024 shows that the UK sits 10th out of 47 countries in how ‘EV-ready’ it is, while Norway tops the list and Finland sits third, thanks to various initiatives that are making EVs a more practical and appealing choice for fleet managers.
Ayvens – a global leader in sustainable mobility – has reported that the UK is falling behind Northern Europe in terms of EV take-up, because the Scandinavian countries have more progressive policies, a more robust charging infrastructure and better incentives to transition to EVs. This has led to much higher EV adoption rates and much more accessible charging options.
Attracting fleet managers to EV driving
In the UK, the relative success of EVs has been largely credited to fleet take-up. EV sales in September 2024 grew 23.3% when compared to September 2023, and represented 20.8% of newly registered cars in the UK, a record sales month to date. In 2022, 55% of new EV registrations were accredited to fleets, but this saw a dramatic increase in 2023 when 242,235 new EV registrations were accredited to fleets, a huge year-on-year increase of 38.7%. However, figures show that Finland offers financial subsidies for vans and trucks and zero-emission cars are exempt from road tax, which is attractive to fleet managers and encourages them to make the transition.
Equally, in Norway there are incentive packages for EV drivers, including lower taxes and VAT exemptions, and better investment in charging infrastructure.
Why the EV transition rate has slowed in the UK
Reducing range and cost anxiety is still a problem in terms of EV adoption in the UK, despite initiatives such as the plug-in van grant, lower BiK tax rates and an exemption from vehicle excise duty (VED). There is still widespread uncertainty about some of these incentives. The Department for Transport still can’t make any promises that the plug-in van grant will be extended beyond 2025, and VED is rising from April 2025 and becoming less beneficial for EV drivers compared to petrol and diesel car drivers. And despite national improvements, many drivers find the UK charging infrastructure insufficient and inaccessible.
Another major factor for UK fleet managers to consider is the total cost of ownership of EVs. This is currently considered prohibitive compared to petrol/diesel vehicles, due to rising energy costs and the higher upfront costs of EVs. While energy costs may be a short term factor attributed to the cost of living crisis, when combined with the still higher upfront costs of buying and leasing EVs, this is slowing down the transition rates for many fleet managers.
Helping you with your fleet transition to EV driving
The fleet sector is hopeful that the UK Government will introduce tax breaks for fleet leasing, along with more grants and incentives for making the switch to EVs. More investment in charging stations is also needed to reduce range anxiety and the threat of vehicle downtime, the critical cost that fleet managers can’t accept. Clear guidance on these policies is soon needed, but this study and the experiences of Northern Europe show what is possible, and at Total Motion we have some confidence that the UK can soon start to follow suit.
Since 2000 Total Motion has done a huge amount of work on alternative fuels and is very clear about the benefits of EV driving, and can also see that the path towards full electrification of fleets is inevitable. However, we also understand the concerns of fleet managers who haven’t yet made the switch and have valid concerns about doing so. Quite simply, full electrification isn’t for everyone and businesses shouldn’t make the switch if they recognise it isn’t right for them. So Total Motion can assist with the fleet management of both petrol/diesel vehicles and EVs, and if you need any advice on either, or information on electric fleet management solutions, and when to make the transition of your fleet to EV driving, then contact our team today.
