Electric vehicles have a role to play in fleet mix
22 September 2011


Electric vehicles will have a role to play in the transport mix according to a new guide from the British Vehicle Rental and Leasing Association. But at the moment, there is a dearth of real-world information which is preventing fleet decision makers from fully assessing the feasibility of EVs for their vehicle fleets. The new BVRLA guide attempts to plug this information gap.

The 17-page guide looks at the practical details involved in selecting suitable EVs for fleet use and identifies where they might play a meaningful role, as well as recognising which manufacturers have launched suitable EV models.

It looks in detail at the financial issues involved in operating EVs, including the current Government-provided £5,000 plug-in car grant that EVs attract. However, even with this grant, EVs are typically £8-12,000 more expensive than their internal combustion engine equivalents.

Most of this price differential is attributable to the vehicle’s battery, but some of it is offset by the much lower fuel costs associated with an EV.

To qualify for the £5,000 grant, an EV must:

• Be capable of reaching speeds of 60mph or more
• Meet the same safety standards as conventional cars
• Come with a minimum three year warranty on the battery with an option to purchase a two-year extension.

The guide also gives a detailed breakdown of the costs involved in running an EV compared to a conventional vehicle.

It shows a comparison between a Nissan Leaf EV and a VW Golf Bluemotion 1.6 TDI. The Leaf costs £30,990, before the grant is applied, with a 35% residual value forecast, compared to the Golf at £18,665 with a 44% RV forecast.

After taking into account depreciation, interest, road tax, National Insurance, insurance, maintenance and fuel costs, the guide shows that the Leaf costs £23,848 to run over three years while the Golf is almost £5,000 cheaper over the same period at £18,770.

The guide also cautions: ‘With the latest EV models, residual values are a largely unknown quantity. At the moment there is not enough data to draw accurate long-term conclusions and most organisations will have to rely heavily on the forecasting expertise of third parties.’

To assess whether EVs would be suitable for their fleet, the guide suggests that fleet operators ask themselves a number of key questions. These include:

• What is the average daily business/commuter mileage of your drivers?
• What charging infrastructure do you have?
• Are your employees genuinely motivated by green issues and initiatives?
• Would your organisation be prepared to pay more to demonstrate its green credentials?

Martin Brown, managing director at contract hire and fleet management specialist Fleet Alliance said: “This new guide from the BVRLA is a really welcome addition to the debate as it tackles the issues surrounding EVs in a no-nonsense manner and looks at all the practical considerations surrounding their use for fleets.”

Anyone who would like a free copy of the BVRLA guide should email their details to info@fleetalliance.co.uk.