UK businesses urged to go electric to save over £600 million

As many as 435,000 small-and medium-sized enterprises (SMEs) could save up to £1,440 a year with their first electric vehicle (EV).

This could deliver £625 million in cumulative savings for UK businesses, according to new research revealed by joint industry and Government campaign Go Ultra Low.

A survey of UK SMEs, commissioned by Go Ultra Low for its recent Summit - Preparing for your electric vehicle future – found that many businesses are not aware of the potential savings of electric motoring.

When assessing suitable vehicle options, only 35 per cent of businesses said they consider whole-life costs of running a vehicle, with the major considerations remaining at the more basic level of vehicle contract hire rates (32 per cent) and vehicle list price (12 per cent). Despite this, more than two thirds (67 per cent) said they would consider 100 per cent electric and plug-in hybrid vehicles with lower whole-life costs than petrol and diesel equivalents.

Whole-life cost figures from Lex Autolease illustrate how the higher initial cost of plug-in vehicles can be more than offset by significant fuel savings, tax benefits, and a potential 70 per cent reduction in service, maintenance and repair (SMR) costs.

Speaking at the Go Ultra Low Summit, 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.”

Go Ultra Low research also found that UK companies already using electric vehicles for business operations are more than 2.5 times as likely to offer them to their employees as company cars, giving them the opportunity to benefit from preferential benefit in kind (BIK) tax rates and reduced fuel costs.

As well as the savings, company car drivers are eligible to sign-up to the Electric Vehicle Homecharge Scheme, enabling them to claim up to £500 off the cost of installing a dedicated home chargepoint.