London ULEZ to drive take-up of EVs and flexible ownership

Drivers in London are adapting to the expansion of Ultra Low Emission Zone (ULEZ) in different ways, with the majority looking to go electric sooner and many drivers considering flexible methods of acquiring new vehicles.

The majority of drivers (56%) in London said they see the expansion as an opportunity to go electric sooner than planned

Research from Churchill Expert, Direct Line Group’s flexible fleet insurance provider, reveals a quarter (25%) of London-based drivers whose current vehicle doesn’t comply with the emissions standards for the expanded ULEZ are planning to switch to a compliant model.

Of these drivers, less than half (45%) are considering acquiring new cars through traditional means, such as outright ownership and Personal Contract Purchase (PCP).

Instead, a third (31%) are considering acquiring a replacement vehicle through alternative, flexible ownership methods as opposed to through traditional purchase models. Examples include traditional rentals (9%), carshare or short-term rentals (8%), employee salary sacrifice schemes (8%), or subscriptions (6%). This compares to only 7% of UK motorists in April 2022 who had acquired their vehicles through the same flexible methods.

The flexibility in types of access models is likely to make it easier, and less of a commitment, for drivers to switch to an electric vehicle. And the majority of drivers (56%) in London said they see the expansion as an opportunity to go electric sooner than planned.

Nicola Richmond, head of Churchill Expert Flexible Fleet Partnerships, said: “It is interesting to see many drivers considering flexible methods of acquiring new vehicles, with the majority seeing the expansion as an opportunity to electrify sooner than planned. Churchill Expert is ready to support car subscription and flexible vehicle fleets as they make the transition to electric, as well as those more broadly and are looking for an insurance partner.”

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Natalie Middleton

Natalie has worked as a fleet journalist for over 20 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day.