Electric vehicles are at the forefront of the green transition, improving air quality and promoting cleaner, safer roads, but much of the policy discussion focuses on consumer uptake. This report looks at electric vehicle adoption among business fleets, and the need for better fast-charging infrastructure to promote uptake.
KEY POINTS
- Business fleets are comprised of vehicles used for commercial purposes, like vans and trucks, which emit more pollutants than the average car.
- In 2021, heavy goods vehicles (20%) and vans (17%) accounted for 37% of domestic transport greenhouse gas emissions.
- Business uptake of EVs is on the rise, but fleet numbers are lagging behind the uptake of passenger cars.
- From 2013 to 2023, registrations increased by 211% for electric heavy goods vehicles and 1,356% for electric light goods vehicles, compared to a 18,627% increase for electric cars.
- Business-oriented EV policies have supported this growth, but they are scheduled to end in 2025. Without extensions or replacements, businesses face the risk of increased costs and reduced incentives – which may lead to slower adoption
- High upfront costs are an obstacle, but the main causes for concern among businesses we spoke with were around insufficient charging infrastructure and unreliable battery life
RECOMMENDATIONS
- The government should extend key EV subsidies to ensure that adoption in the commercial sector does not plummet.
- Following Norway’s example, the government should expedite funding to the rollout of EV charging infrastructure to ensure supply continues to meet demand.
- Until battery technology improves, any new EV policies should be directed to consumer subsidies, which are likely to be most impactful for encouraging widespread adoption
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