12.1.2018ULEVs could save UK firms thousands each year
Small and medium sized businesses could save almost £1,500 a vehicle if they switched to electric models according to Go Ultra Low. The combined total could save UK small and medium sized enterprises (SMEs) £625 million, thanks to the lower whole-life costs afforded by plug-in vehicles.
Data provided by Lex Autolease shows that a Hyundai IONIQ Electric or Plug-in Hybrid benefit from a £120 monthly whole life cost saving over a comparable Hyundai i40 1.7 CRDi diesel. This adds up to an annual saving of £1,440.
There are around 480,000 SMEs in the UK that currently operate vehicle fleets, averaging five models per business. An estimated 46,000 already run EVs calculated on fleet market share figures, leaving around 435,000 SMEs able to save more than £1,400 a year over their current set-up.
According to Go Ultra Low research though, only 35% of SMEs use whole-life cost figures to assess vehicle suitability, with the higher initial purchase or lease prices of Ultra Low Emission Vehicles (ULEVs) off-putting to decision makers - that's despite long term savings more than compensating for this factor.
More than two thirds of businesses surveyed said they would consider pure-electric and plug-in hybrid vehicles if their whole-life costs worked out lower than petrol and diesel alternatives though. The calculations by Les Autolease factor in the headline significant fuel savings and tax benefits, while also including huge cuts in service, maintenance and repair costs.
Poppy Welch, Head of Go Ultra Low, said: "Cost savings are a top priority for companies of all sizes. So, fleet operators from both SMEs and large companies that look beyond a vehicle's initial purchase price or monthly rental, stand to save their companies thousands of pounds every year.
"Electric vehicles can return significant operational savings – just one electric car or van could save SMEs up to £1,440 annually. With an ever-increasing number of plug-in models now available, it's even easier for businesses to identify an ultra low emission vehicle that suits their needs."