Many fleets unaware of EV incentives, Leaseplan finds
05 May 2021
Author: Sean Keywood
A significant number of fleet decision makers are unaware of incentives available for adopting EVs, according to leasing company Leaseplan UK.
It said a survey it conducted found that 24% were unfamiliar with lower company car tax and VED rates for EVs.
In addition, 35% were unaware of first-year allowances for zero-emission vehicles, and 43% were unaware of the extension to the plug-in car grant.
Leaseplan also found, with an eye on range anxiety, that 33% were unaware of investment in the national charging infrastructure.
Despite some being unaware of incentives, Leaseplan found they are still having an effect, with 52% of respondents saying lower company car tax rates for EVs had made a different to their policies, while 41% said the same for VED, and 46% for first year allowances.
However, Leaseplan commercial director Chris Black said the UK Government's recent reduction of the value of the plug-in car grant risked undermining its own decarbonisation initiative.
He said: "For this industry to thrive on this journey to electrification, we need to keep that momentum up. Now is not the time to slam our foot on the brakes - let's keep pushing forward to improve infrastructure, and continue to provide incentives to enhance EV ownership."
Black also said that salary sacrifice schemes could provide an attractive option for fleet electrification.
He said: "Employees who get an ultra-low emission vehicle through salary sacrifice only have to pay company car tax on the taxable value of the car, rather than Income Tax on the higher of the car's value or the salary sacrificed.
"What's more, with most salary sacrifice for car schemes, a single monthly payment covers everything except the fuel. Running costs, maintenance or breakdown and repair charges are all included."