Mike Palmer, client development director at Nexus Vehicle Rental, discusses why businesses should still be focused on preparing to switch to electric vehicles, and why second-hand EVs may be the best option.

Mike Palmer, client development director at Nexus Vehicle Rental

When operating a business fleet, it’s important to monitor government guidance around vehicles and regulation that may impact your business, including potential fines, restrictions and limitations on usage. With sustainability so high on the news agenda, governments across the world are introducing stricter emission standards and offering incentives to encourage the quicker adoption of electric vehicles.

While Prime Minister Rishi Sunak announced the UK ban on petrol and diesel vehicles is to be delayed by five years to 2035, it is important that reducing carbon emissions remains a top priority for businesses. Especially with plans still going ahead for the UK to reach net zero by 2050, and businesses increasingly being held accountable for their sustainability promises by customers who are more environmentally conscious than ever.

To remain competitive and contribute to a greener planet, businesses must adapt to this changing landscape. They need to prepare in advance and be ready for the eventual implementation of the ban whilst continuing to work towards reducing their carbon emissions to ensure they are operating in a more sustainable way.

Preparing for the inevitable

It is imperative that businesses stay up to date and alert to any changes in the EV landscape and consider how governmental changes may impact their business and employees. An example of this would be the ULEZ expansion to now cover all London boroughs – effectively taking it up to most roads within the M25. Any drivers in a non-compliant vehicle must now pay £12.50 per day to drive anywhere in that zone, which will undoubtedly impact many businesses who operate within central London – especially delivery, logistics and retail businesses who have no alternative transport options. As a result of this change, I expect we will see a lot more London-based businesses looking to upgrade their fleets where possible and specifically looking at potential for more EVs, to ensure they do not face a stream of high charges.

Equally, businesses considering making this transition to electric vehicles may also look to invest in their own charging equipment within the business premises, or options for forging a partnership with one of the charging networks to ensure reliable access. This would provide drivers with the reassurance that when they are out in their EVs, they know exactly where they can locate the nearest charging point when needed.

If unsure where to begin with this, it’s important to evaluate current business mobility. As part of this process, it may become more clear which vehicles you can get rid of or where there are obvious substitutions to be made. Alongside this, businesses can begin preparing and training staff, so that they are able to confidently operate and maintaining EVs and the accompanying infrastructure.

The recharged interest in second hand EVs

One helpful factor that may encourage businesses considering transitioning to electric is the recent surge in second-hand EVs for sale. Sales of these ‘pre-loved’ vehicles rose by more than 82% in the three months to June 2023, highlighting how demand for these low-emission and affordable vehicles is increasing. In fact, in the second quarter of this year, more than 30,500 battery-powered vehicles changed hands.

This spike in demand in second-hand EVs is good news for businesses that are looking to transition to an electric fleet, but do not wish to buy new, as there are more options now available on the market. The boost in the second-hand market is vital; increasing availability, affordability, and quality of electric vehicles, which are still far more expensive that diesel-powered vehicles for example. It does appear that EVs are beginning to be more affordable, with prices falling 35% in the last 12 months according to CAP, and hopefully this trend will continue.

With lower prices and greater availability, the ability for businesses to begin making an EV switch becomes an easier task. To support this, it remains crucial that the Government can support the development of suitable EV infrastructure across the UK, despite the delay on banning petrol and diesel vehicles. As the demand for EVs continues to grow, this should remain at the top of the business and government agenda to ensure that we are all prepared when the ban does come into force in 12 years’ time.

Try before you buy

For those that are not yet sure on how they can prepare, businesses should not panic as there are a lot of potential options for them to ensure they can work out their specific business mobility needs.

Rental enables businesses to upscale their fleets based on demand, and can therefore help them quickly expand their fleet when needed, whilst at the same time reducing upfront cost and investment. Renting an electric vehicle also allows businesses to work out how they can adapt their fleet, and whether it will work for them in the long run, while ironing out any challenges or concerns among employees. By doing this, businesses can both save money compared to buying outright, but also assess where EVs can fit within their fleets.

Looking ahead, businesses should view rental as an option for their preparation. As we move towards the, now delayed, ban on petrol and diesel ban in 2035, it is important that sustainability remains on the business agenda and a top consideration for fleet managers.