In-depth insights
60 minutes
Participants:
- Miguel Cabaca, managing director, Arval UK
- Ian Tilbrook, former Fleet Director of Volkswagen Financial Services
- Toby Poston, director of corporate affairs, BVRLA
- Edward Peck, David Betteley and Brian Rogerson, Asset Finance International
This week Boris Johnson has announced that he will ban the sale of ICE cars in the UK by 2030 and the sale of hybrids by 20351. At present however BEVs still represent only 7% of new vehicles sold in the UK1 and nearly half of UK consumers feel that Boris’ previous target date of 2035 was too early2. Business fleets however seem more willing to transition, with 30% of UK businesses already using EVs and 50% expecting to use them within the next few years3. Zenith’s total order book in June, for example, was expected to be 30% BEV. 3
Why the difference? There are many reasons including fleet companies focus on total cost of ownership which contrasts with consumers preoccupation with purchase price alone; the substantial reductions in benefit in kind available to business purchasers; and of course the deeper pockets of businesses over consumers to pay for BEVs which are currently substantially more expensive, with the cost of batteries being a large contributor4. BEV’s are also an opportunity for businesses to show off their green credentials5
The BVRLA’s recent plug-in pledge suggests that the industry sees an opportunity in the short-term to increase uptake and lead the charge6 but manufacturers will need to find ways to accelerate uptake among both consumers and businesses alike to meet increasingly challenging CO2 targets proposed in the EU7. OEMS vision for business growth post the transition may collide with fleet companies with increased focus on services.8
What is Miguel’s views on the opportunities and challenges faced by the industry as it manages this transition?
How will the economic downturn and BREXIT affect the speed of transition?
How will auto industry, serving both consumers and businesses change – and what is fleet’s likely role?
Where next? Will the industry become the true eco-warriors of the future adding value through by maximising car utilisation and its usage of data?
Background Reading
1 https://www.ft.com/content/5e9af60b-774b-4a72-8d06-d34b5192ffb4
5 https://www.theclimategroup.org/ev100-members