Alfonso Martinez, managing director at LeasePlan UK, advises fleets on why a longer-term approach to electrification is paramount.

Alfonso Martinez 09(1)

Two years have now passed since the Government took the historic step in bringing forward its ban on the sale of petrol and diesel vehicles to 2030 – five years earlier than its original deadline. During this time, I’ve witnessed profound change within the fleet industry. EV sales have skyrocketed, with battery models now accounting for almost one in eight new vehicle registrations. This is reflected in our own orderbook, which is now largely dominated by EVs.  

The growth of the EV market has revolutionised the automotive space and changed the way we view driving. Underpinning this is the growing number of businesses committing to electrifying their fleet. Motivated by the cost savings and their commitment to helping the environment, more and more businesses are stepping up and saying that ‘now is the time to make real change and go electric’.   

Yet, there are serious challenges ahead that we’ll need to overcome if we’re to succeed in the UK’s ambition of being a net zero nation by 2050. A global semi-conductor shortage has resulted in long lead times for some EV models, causing delays in vehicle delivery and threatening to undermine the Government’s vision. As such, some companies are having to wait longer to implement parts of their electrification strategy and retain existing vehicles for longer than their normal lease cycle.   

Similarly, there are businesses that are going to struggle to find an electric equivalent for certain mission-critical vehicles within the parameters of their current means and the technology available to them. The EV industry has provided us with solutions to many of the issues we businesses faced on our journey to decarbonisation. But in a few instances, we’re going to have to hold out a little longer.  

Despite all this, it remains as crucial as ever that fleet operators continue to get ahead with their journey to electrification. Failure to do so could mean further delays and the added cost of having to ‘catch up’. My advice would be to lean on your leasing partner as often as possible, to help you optimise your strategy and make intelligent decisions about which vehicles you prioritise first.  

A fully electric fleet is always going to be the end goal. But for some businesses – particularly those with large or complex fleets – their journey is going to require a long-term mindset. Most things worth doing take time; or as the old adage goes: Rome wasn’t built in a day.  

Recently, we’ve been helping our customers to do strategic reviews of their driver profiles to help them understand which areas to concentrate on first. This process is important in helping fleet operators to identify priority vehicles, such as those operating within Clean Air Zones or Ultra Low Emission Zones, as well as any quick ‘wins’. By breaking down the electrification of their fleet into smaller, and smarter, short-term goals, companies can make huge progress without the long waits.   

For example, we’ve been working with construction giant Clancy Group to realise its short-term goal of electrifying 20% of its fleet by targeting its 400 user-chosen company cars. Its new ‘electric first’ policy encourages staff to choose an EV as their company vehicle, with a wide range of models available through our leasing services. So far, they’ve got 72 EVs on order, with another 45 in the pipeline.  

The journey to electric remains as urgent as ever, but this doesn’t mean that companies need to deliver on the government’s net zero vision overnight. Instead, we industry partners need to help them to take incremental, more realistic steps towards electrification which help to deliver on their sustainability goals and wider businesses objectives. These smaller steps will soon add up to something far more significant, and that is where real change is born.