The Capitas Green Briefing: trending news on the growing electric vehicle market as demand increases.

Trending news on the growing electric vehicle market as demand increases due to the 2030 ban of sale of new petrol and diesel cars and vans

Driving is woven into the fabric of our everyday lives. But with the forthcoming ban in 2030 on the sale of new petrol and diesel cars and vans, it has brought the mass adoption of electric vehicles into even sharper focus, as the UK aims to be the leader in terms of decarbonising its transport network.

Record highs

According to the Society of Motor Manufacturers and Traders (SMMT), demand for the latest battery electric (BEV), hybrid (HEV) and plug-in hybrid (PHEV) vehicles, surged, up 32.2%, 45.7% and 72.1% respectively. This follows on from its research which showed that more than a quarter of all cars made in July were either BEV, PHEV or HEV. 

Positivity towards electric vehicles is also at an all-time high amongst fleet operators who recognised the benefits they offer against their fossil fuel counterparts. The latest Operational Fleet Insight Report from the AA and Rivus Fleet Solutions shows that almost two thirds believe that electric vehicles have better whole life costs than diesel or petrol vehicles whilst 66% recognise they require less servicing, and 59% have identified that electric vehicles hold their resale value and have less downtime. There was also an increase in the number of fleet operators who expect to be using electric vehicles within the next five years – rising from 26% who currently operate these types of vehicles to 67%. 

Super-deduction tax 

With such interest in operating greener fleets, the BVLRA has called for the Government’s Super-deduction tax to be applied to rental and leasing. Alongside six other leading trade associations, it has urged the chancellor to modernise tax incentives in order to drive business investment in new vehicles and equipment. Leasing and short-term hire are two of the most common ways in which business purchase new plant and machinery, yet it is not covered by the capital allowance scheme. The impact of their inclusion for tax benefits would be huge given 1-in-5 trucks and 1-in-6 vans on UK roads are rented or leased. The BVLA says that the Government must move with the times and use investment incentives that support the acquisition methods modern businesses rely on.

Government action 

Following the launch of the Government’s much-anticipated Transport Decarbonisation Plan last month, it is now planning to introduce legislation that will see all newly built houses with car parking space and office buildings fitted with electric vehicle charging points. And in a bid to make charge points as recognisable as black cabs, London busses and red post boxes, a steering board has been created to support its design project, with the final design being launched at COP26 later this year. 

The Government is not the only body taking action on EVs, with Ofgem outlining its approach to transport decarbonisation. It’s priorities are to ensure that the infrastructure and technology is in place in order to unlocks the full benefits for consumers and the environment, whilst reducing the cost of the energy system. 

Darren Riva, Chief Executive of Capitas Finance, comments: “The growth being seen across the electric vehicle market speaks for itself. But as demand increases, it needs to be matched by investment in infrastructure to ensure an effective transition. Whilst the number of Government-backed projects will seek to make the switch to electric vehicles even easier, providing businesses with access to finance, and helping them to take advantage of the opportunities available is critical and will help us take the required steps towards our net zero ambitions.” 

Capitas Finance specialises in financing energy solutions for carbon-conscious businesses and public sector organisations. Our products and services are designed to help you implement sustainable, low carbon technologies and strategies that save energy and reduce carbon emissions and align with the Government’s commitment to reach Net Zero by 2050. To find out how Capitas can work with you, drop us a line here