The cost benefits and lower environmental impact of electric vehicles are top of the list of reasons why UK fleets are adopting them, analysis from the latest Arval Mobility Observatory Barometer shows.

Reduced fuel expenses were cited by fleets as the lead factor for electrification, followed by tax incentives

Its research among fleet and mobility decision-makers saw reduced fuel expenses named as the lead factor in electrification (cited by 66% of those questioned – up from 54% in 2021) while tax incentives slotted in second place (58% – up from 40% last year).

The lower environmental impact of EVs came in third with 54%, the lower total cost of ownership at 41%, while company image benefits were 37%, and Low Emission Zone access only scored 33%, despite new cities and areas being added across the country.

Shaun Sadlier, head of Arval Mobility Observatory in the UK, said that while it was unsurprising to see reduced environmental impact among the lead reasons for electrification, it was notable that cost advantages are also now leading the way.

“It clearly shows that as operational experience of electrified vehicles grows, fleets are increasingly knowledgeable about the real-world potential and financial benefits of their adoption,” he continued.

“In fact, more than four out of 10 fleets now show an awareness that electrified choices offer a total cost of ownership in line or lower than petrol or diesel alternatives, a key point that is only likely to become more pertinent as oil prices continue to increase.

“Another factor that has seen considerable growth is that employees are increasingly pushing for electrified vehicle adoption, up to 42% in this edition of the research compared to 29% last year. Staff enthusiasm for electrification is a key enabler of rapid change in many organisations.”

The research also asked UK businesses which electrified form of power they had already adopted for their fleet and which they planned to adopt within the next three years. Currently, the most popular are hybrids (54% already adopted/68% adopted and planned), plug-in hybrid (44% against 63%) and battery electric vehicles (36% against 57%).

Sadlier added: “These percentages represent nearly double the rate of adoption compared to the 19 other European countries that we survey, and it applies to all electrified cars and all rates of adoption. The UK is very much amongst the leaders on an international basis when it comes to car fleet electrification.”

Arval Mobility Observatory researches the fleet and mobility sectors every year. Decision-makers in 26 countries were questioned for the 2022 edition, with 20 in Europe.

Which of the following alternative fuel technologies do you currently use for your car fleet (already using/already using or considering using within the next three years – UK and other European countries)? 

​​​​​​​Why are you already or are considering implement alternative fuel technologies on your car fleet (UK and other European countries)?