Commercial fleet EVs have increased by 57pc in the last twelve months and are set to add nearly 5.5mn EVs by the end of the decade, according to a new report from electrification campaign EV100.
EV100 — a consortium of some of the world's biggest fleet operators — says that 630,000 EVs have been registered in commercial service in the last year and that its members have committed to putting 5.45mn EVs on the road by 2030 in 117 markets.
The report considers corporate fleet vehicles as well as leased vehicles, and finds that these are driving considerable growth in major global EV markets, often far ahead of the private purchase market.
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The US lags behind with under 3,000 fleet EVs deployed in the last year, below significantly smaller markets such as Austria, Sweden, and the Netherlands.
The report finds that India has the largest future commitment of EVs by 2030, with 20 operators making up a purchase pipeline of nearly 400,000 EVs before the end of the decade.
"India’s potential for EV adoption is huge given supportive government policy that has allowed EV100 members to commit over 390,000 corporate fleet vehicles to go electric."
Incentive discrepancy
The UK leads the world in deployed corporate EVs, the report finds. The country has deployed 23,136 corporate EVs in total, including 7,459 over the last year. Sales of electric company cars in the UK are a key driver in the UK BEV market, largely owing to a favourable benefit-in-kind taxation scheme and the growth of salary sacrifice schemes.
The UK this week reported its best ever month for EV sales, and fleets drove the jump in registrations with little growth in the private market. And the UK's automotive lobby, the Society of Motor manufacturers and Traders (SMMT), reiterated its call for the government to introduce incentives for private EV buyers.
"Manufacturers themselves are offering generous incentives, helping more drivers switch to zero emission vehicles and deliver government and industry carbon targets, but this cannot be sustained indefinitely," the SMMT said this week. "A full market transition needs incentives not just for fleet and business buyers but private retail buyers as well, something that would bring the UK into line with other major markets."
But the report argues that fleet-based incentives themselves have been bearing fruit, even despite the discrepancy with the private market.
"The growth over the last year shows the impact of clear legislative signals such as the internal combustion engine phase-out trajectories through zero emission vehicle mandates, or CO2 emission standards in the European Union, United Kingdom and a growing number of states in the United States," says Sandra Rolling, director of transport at EV100's parent company, Climate Group.
"It also stands in clear contrast to negative media stories looking to cast doubt and slow down the transition," she adds.
Ciaran has written about finance, politics and culture. He is passionate about e-mobility and what it means for our way of life.
Ciaran has a Masters in Ancient Philosophy from Oxford University.
