The urgency of the climate crisis is having a significant effect on nearly all aspects of life. As governments attempt to tackle the existential threat of climate change, more drastic steps are being considered. One such measure that is being introduced by the UK government is a ban on any new petrol and diesel cars from 2030 onwards. The move towards electric vehicles has gained momentum in recent years and this will only accelerate with new legislation. Whilst this change affects many individual car owners, it also affects many businesses. With this in mind, is now the right time to make the change to an electric fleet?
Environmentally Friendly
Obviously, the main drive behind the move from fuel to electric vehicles is environmental but there are multiple aspects to this. Electric vehicles don’t produce any direct carbon emissions but the electricity that they use can be generated using fossil fuels. However, electricity is a much more versatile form of power as it can be renewable.
As well as carbon emissions and its effect on global warming, fuel-based vehicles also produce pollution. As many congested cities are cracking down on pollution, it’s likely that drivers will have to operate in more clean-air zones. Electric vehicles completely sidestep this issue as they don’t produce any emissions.
Running Costs
Currently electric vehicles are more expensive to buy, compared with their traditional counterparts, although this is coming down. However, once you get past this initial investment, electric cars incur much smaller running costs. Fuels such as petrol and diesel are burned to produce heat, which is transferred into kinetic energy. As this is a multi-step process, much of the energy is lost along the way and therefore these vehicles are extremely energy inefficient. However, electric cars utilise a straightforward process of electricity to motion and can be over 90% efficient. For the driver, this means you’re going to get more for your money.
As well as fuel, electrical vehicles are also very low maintenance, which saves time and money. Not only can you avoid the worry of paying for repairs or spare parts, you don’t have to suffer any down time, which incurs costs in itself.
Branding
The move to more environmentally friendly operations is important but it can also be beneficial in terms of branding. More customers are choosing companies based on their eco credentials, whether that be plastic-free packaging, ethical sources or in this case, electric vehicles. Any businesses who are deciding whether to take the plunge should consider the advantages of green marketing. It could mean the difference between a customer choosing you or choosing a competitor.
Perks
The government are attempting to make greener options as desirable as possible. One of the ways in which they are doing this is providing certain benefits to those who choose electric vehicles. For example, electrical vehicles are completely exempt from congestion charges, which can lead to significant savings, particularly in areas such as London. There are other savings to be made, including exemption from road tax and potential tax deductions. Therefore, businesses with fleets of vehicles will see a substantial difference in costs, if they make the jump to electric.
Futureproof
It’s worth noting that electric vehicles aren’t perfect and there are some drawbacks to consider. For example, charging points aren’t as accessible as they should be and this infrastructure needs to improve. Also, the initial investment into electric vehicles can be steep and therefore may not be feasible for some businesses. However, there is going to be a permanent shift to electric and this isn’t a question of if, but when. Therefore, companies who can make the change now, should consider doing it, in order to ensure they’re prepared for the new normal.
Businesses that utilise fleets of vehicles, for example delivery companies, face many unique challenges, including whether to opt for electric alternatives. With this in mind, U Deliver offer comprehensive accountancy and tax services, tailored to the delivery industry. Visit their website for more information on everything that they have to offer.
