New Arval company car scheme sees half of staff switch to EVs
A new Arval company car scheme intended to support electric vehicle adoption among staff has already seen almost half its drivers switch to electric vehicles some four months after launching.
The company operates just over 200 company cars for its internal fleet and the newly introduced scheme aims to speed up electrification to reduce emissions, showcase best practice and educate drivers by drawing on an increased choice of EVs and improved charging infrastructure.
Under the new scheme, drivers can switch to an EV if their current company vehicle is more than 18 months old.
Employees also have free use of more than 40 charging points at its Swindon head office and provided the option to have a competitively priced home charger installed.
Arval UK HR director, Ailsa Firths said: “Because of our revised scheme, almost half of our colleagues with a company car have now switched to electric. One of the key areas we focused on was driver education by making sure we shared key information to help people make an informed decision. This approach has supported widespread adoption of EVs at all levels within the company. I now drive an EV – and the broader uptake is extremely encouraging.”
Take-up includes by Arval UK’s managing director, Miguel Cabaca, who is among those who has decided to opt for an EV under the new company car scheme.
Firths continued: “We’re regularly providing advice to customers who want a rapid switch to electrification for a large proportion of their fleet. Our own company car scheme has now turned that guidance into reality, to act as a real life case study from which others can learn.
“We completely rewired our approach, taking into account factors such as cost, choice and CSR, to create a scheme that covers the vast majority of EVs currently available on the market, alongside hybrids, petrol and diesel vehicles.
“Much work has gone into the structure of these choice lists, as well as ensuring that other key factors that make up our company car scheme, such as cash allowances, whole life cost allowances and whole life methodology, are incorporated into our latest thinking.
“Especially, with the 0% Benefit-in-Kind taxation rate in effect for the 2020-21 tax year, we expect EV uptake among employees to continue to be very high.”
Changes to Arval’s Ignition salary sacrifice scheme have also ensured that all employees can access EVs and low-emission vehicles at attractive monthly rates, regardless of grade or benefit package.
“For a 40% taxpayer, we can provide an electric hatchback at around half what they would expect to pay otherwise. Salary sacrifice schemes make a lot of sense at the moment and take-up has been high,” added Firths.