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Business plans for electrified travel rise rapidly

Business plans for electrified travel rise rapidly

Tuesday, 7 July, 2020

The intention of UK businesses to adopt the three main kinds of electrified vehicles has risen rapidly in the last 12 months, according to authoritative new research.

The results show dramatic increases in businesses which report either already using, or are considering to use battery electric vehicles, plug-in hybrids and hybrids, according to the Arval Mobility Observatory report, which gains insight from 5,600 businesses across Europe.

Now, more than half (53%) of UK businesses say that they are already running battery electric vehicles or plan to do so in the next three years, contrasting with 41% answering the same question in 2019.

When it comes to plug-in hybrids, the figures were 63% now against 46% last year – the largest increase seen for any type of EV – and 64% compared to 53% for hybrids.

Shaun Sadlier, Head of Arval Mobility Observatory in the UK, said: “These results show just how much additional impetus now exists behind the adoption of electric vehicles, plug-in hybrids and hybrids among UK fleets at this moment compared to just 12 months ago.

“We have been saying for some time that 2020 would very much be the year during which electric power takes off for fleets and these findings show that fleets agree with those sentiments. There has been a very noticeable acceleration.

“The reasons for this are, we believe, quite clear. The tax incentives now available for company car drivers, especially the zero per cent benefit-in-kind rate for the 2020-21 tax year for battery electric vehicles, is a huge attraction.

“Also we are in the process of seeing a dramatic expansion in the choice of EVs available, especially among battery electric vehicles. Over the course of this year, the number of models available will go from a handful to dozens, with better representation across all segments and price points.

“Finally, while there is still work to be done, the charging infrastructure across the UK is growing all the time, providing reassurance to drivers and their employers that these vehicles can be used practically on a day-to-day basis.”

Shaun said it was interesting to note that many businesses with which Arval worked in the UK were now planning to move straight from petrol and diesel cars to battery electric alternatives.


Find out more about Arval Mobility Observatory.

“A couple of years ago, the received wisdom in the market was that both types of hybrid would probably serve as a transitional technology. Instead, the perceived hurdles to battery electric adoption have reduced to a point where they can meet the needs of a wide variety of drivers, while it has become recognised that hybrids and plug-in hybrids have their own applications.

“Indeed, a lot of the work currently being carried out at Arval is helping businesses to create new choice lists that provide drivers with relevant options for all the main types of power.”


Among the following alternative fuel technologies, which ones do you use or are considering using in the next three years?

  Plug-in hybrids Hybrids Battery electric vehicles
2020 63% (25%) 64% (29%) 53% (16%)
2019 46% (22%) 53% (25%) 41% (16%)
2018 46% (22%) 53% (25%) 42% (14%)

Main figure shows total of both businesses operating vehicles and planning to adopt in the next three years. Figure in brackets show those that have already adopted.

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