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The company car market is predicted to grow significantly after new research reported a three-fold increase in drivers wanting to source their next vehicle through their employer.

The findings, from the OC&C Speedo meter ‘Battery Late Than Never’ report, also suggest that Covid-19 has helped cement the importance of a car, despite people driving less.

More than two-in-five drivers (42%) said the pandemic has increased their belief that a car is essential. It is not just drivers who see the car as essential either – the number of non-drivers who expect to own in the future has risen by 21% in the UK.

The global report was published last week and is a follow-up to a 2019 study. It tracks how trends in consumer attitudes and behaviours toward vehicles and their mobility needs have changed.

Looking at UK-specific data, it shows that just 2% of consumers expected to source their next car through their employer in 2019, but, three years later, that has risen three-fold to 6% – a 200% uplift.

COMPANY CAR MARKET

It is a positive outlook for a sector which has been in decline for the past few years. The most recent figures, published by HMRC in September 2020, showed that the number of people paying company car tax had again fallen substantially, with HMRC reporting 30,000 fewer people receiving the benefit.

The benefit-in-kind (BIK) statistics, published by HMRC, showed there were 870,000 company car drivers in 2018-19 – a massive 30,000 year-on-year decline.

The figures suggested that the number of employees receiving the benefit had fallen by some 90,000 in the past five years, from 960,000 in 2015/16.

The introduction of a new zero percentage tax rate for a pure electric company car in April 2020, along with lower rates for hybrids, however, has led many to predict a brighter future for the benefit.

The latest new car registration figures from the Society of Motor Manufacturers and Traders (SMMT) highlight the relative strength of the sector.

Almost 80,000 new company cars were registered to fleet and business in April as the market continued to show signs of recovery.

Year-to-date, 318,991 new cars have been registered to fleet and business compared to the 259,017 units registered during the same period last year, a 23% uplift.

Fleet and business registrations now account for 56% of the market, with 567,108 cars registered overall.

There were 141,583 new car registrations in April, with 79,648 new company cars registered to fleet and business.

In April 2020, at the start of the first lockdown, just 3,450 new company cars were registered.

APPETITE FOR EVs

OC&C says the proportion of drivers considering an electric vehicle (EV) is “unprecedented” and is likely to translate into a fast acceleration in EV adoption.

Globally, more than 50% of drivers considered a hybrid when they last changed their car, and more than 40% report they will consider a pure EV next time.

The UK leads the West in EVs in the survey, with 57% of UK drivers considering fully electric for their next vehicle versus 45% in Germany and the US.

In the UK, new BIK tax rates will be persuading some to make the switch to a plug-in car, but the OC&C study shows range and tech improvements (38%), concerns about the environment (39%), Government regulation changes (36%) and better availability of charge points (35%) are the main drivers for consumers.

The OC&C data reflects the experience of leasing companies, which have reported a growing number of company car drivers choosing an EV.

Tusker, for example, has a risk fleet of approximately 20,000 cars and, while just one-in-33 (3%) were pure electric in 2019, it has since increased to one-in-five (20%).

Half of the leasing company’s orders in 2020 were for pure electric cars. Hybrid vehicles, both plug-in and mild, accounted for 20% of its new vehicle orders, with petrol and diesel responsible for less than a third (30%).

In fact, zero-emissions-capable cars, including electric, hybrid and fuel cell models, now account for one-in-three of the available models in the UK, according to the SMMT.

BARRIERS TO ADOPTION

Barriers to adoption have shifted, with the OC&C report suggesting the percentage of people citing access to public charging infrastructure as an issue has fallen dramatically.

In 2019, it said that 64% of respondents in the UK saw it as a barrier to adoption; the latest study reports that it has fallen by 14 percentage points to half (50%).

An EV’s range, while still the number one concern, is also seen as less of a barrier, falling seven percentage points, from 62% to 55% over the same period.

Meanwhile, more drivers see vehicle cost as a barrier, with more than half of respondents (51%) highlighting it as issue, compared with 49% in 2019.

The cost of electricity saw the greatest swing, with more than a quarter of respondents (29%) citing it as a barrier compared with 19% in 2019 – a 10 percentage point uplift.

The Association of Fleet Professionals (AFP) says the lack of an effective national strategy for creating kerbside charging infrastructure is emerging as the biggest barrier to adoption of EVs by businesses.

OC&C’s study, however, suggests access to a charge point close to home or at the driver’s property is becoming less of an issue for UK consumers, with 39% citing it as issue in the most recent survey, compared with 44% in 2019.

The current Government approach to install kerbside charging means 75% of the cost is met by a national fund and 25% is paid by local authorities.

AFP chair Paul Hollick believes the strategy is not working. He said: “We have national fleets who are AFP members and want to go 100% EV as soon as possible. The stumbling block they face is that nationally, around four-out-of-10 people live in apartments or terraced houses and don’t have access to on-street parking.

“That means they are reliant on local authorities to install street charging facilities but, as you’d expect, the impetus and ability to do so varies massively from area to area.”

A kerbside charger costs around £2,500 to install, meaning local government needs to find £600 per unit. In the wake of the pandemic, Hollick says many simply don’t have the money, even if there is the will.

CAR CLUB POTENTIAL

Exclusive access to a car still remains vital to 82% of drivers, according to the OC&C report, with most expressing concerns around accessibility, storage and privacy as key to their reluctance to consider co-ownership or access models.

However, the importance of exclusivity is starting to wane for a forward-thinking minority, with 13% of UK drivers happy to consider mobility solutions as an alternative to having their own car, be it carsharing solutions, taxis or even short-term rental – a four percentage point increase on 2019.

OC&C says this reflects lower car usage in 2020 as a result of the pandemic, environmental and cost concerns, while the development of models such as Zip Car and Drover are also driving changes in attitude.

Consumers also continue to see a car as essential to travel, according to the report. The percentage of drivers who see a car as essential has remained stable between 80-90% since 2019.

This is true even among the young; Gen Y and Gen Z drivers still care about having cars and driving, it suggests. In fact, they have become more dependent on cars than they were. The percentage of 18-29-year-olds disagreeing that a car is essential has fallen from 11% to 5%. By Graham Hill thanks to Fleet News

Electric vehicle (EV) drivers could face an increase in household energy bills of more than £1,000 a year if they don’t use a suitable electricity tariff for vehicle charging.

Energy prices in the UK increased on April 01, 2021, so many households – including those with drivers who charge company vehicles at home – will now have larger electricity utility bills to pay, according to vehicle home charger and energy comparison site Rightcharge.co.uk.

But fleet drivers can avoid price hikes by seeking a more generously priced EV-friendly energy tariff to cover charging electric vehicles.

For example, a fleet driver covering 20,000 miles annually will expect to pay £2,599 a year on a Standard Variable Tariff from one of the big six energy suppliers from April 2021. This includes £1,454 for charging their car.

But users who switch to a lower-cost alternative EV energy tariff could pay only £1,349 a year – with just £459 of that amount on vehicle charging. That’s a huge saving of £995 on charging a vehicle at home, with another £255 saved on household energy bills. So that’s a total saving of £1,250 a year.

Charlie Cook, founder of Rightcharge.co.uk, said: “Compared to a standard tariff, having an EV-friendly energy tariff is incredibly cheap – to the point where a homeowner can charge their car at home and reduce their total energy bills at the same time.

A fleet driver who does 20,000 miles a year can save up to £1,250 a year, so drivers really can’t afford to miss out on the savings available if they change to the right deal.

“If all the current 1.04 million business contract hire drivers switched to electric cars and an EV-friendly energy tariff on the same mileage parameters, the potential saving is more than £1 billion on vehicle charging alone, plus a further £265 million on home energy costs.”

Rightcharge.co.uk compares EV-friendly energy tariffs for users by including their car charging needs as well as their home requirements, so customers can reduce the cost of running an EV.

Cook added: “We believe many EV drivers just don’t realise that while costs have gone up they can still save. Our price comparison website offers them the choices to make the best decisions.”  By Graham Hill thanks to Fleet News

Vehicles parked during lockdown are being targeted by criminals stealing catalytic converters for their precious metals, according to the RAC and Ageas.

There has been a “marked rise” in the theft of catalytic converters since the start of the first lockdown just over a year ago, says Ageas Insurance.

Three-in-10 of all theft claims reported are now related to catalytic converters. Before the lockdown catalytic converter theft only accounted for around one-in-five.

Ageas reports that most thefts have happened while cars have been parked at home, either on the driveway or the road. However, the insurer says that in a very small number of cases thieves had targeted vehicles in supermarket car parks while the driver was shopping.

“Drivers are often oblivious of their vehicle’s catalytic converter being stolen,” said RAC spokesman Simon Williams. “Our patrols are often called to attend cars that have suddenly become excessively noisy. On investigation it’s very often the case that the car’s catalytic converter has been stolen.”

Part of a car’s exhaust system, catalytic converters contain a honeycomb coated with precious metals such as platinum, palladium and rhodium which help to filter harmful gases from the vehicles’ exhaust systems.

The RAC says that when the global value of these metals increase it usually leads to a spike in thefts. Prices of rhodium hit a record highs earlier this year, up more than 200% since March 2020.

The RAC is recommending drivers and fleets get in the habit of taking extra precautions to guard against this type of crime.

With, most offences taking place at night, the RAC says it makes sense to park a vehicle in a well-lit and residential location or a garage if available.

“When away from home, look for car parks that have security patrols and are covered by CCTV,” added Williams. “It’s also a good idea to look for the ParkMark logo at car parks as this shows they have met certain security standards.”

However, as Ageas’ data shows, Williams says that even taking sensible precautions may not necessarily make you immune to this type of crime.

Robin Challand, claims director at Ageas, said: “While catalytic converters are just one component of a car, their theft can often result in a driver’s car being written off.

“We hope that by shining a spotlight on this type of crime, we can arm motorists with the information they need to protect their vehicles.”

The warning for fleets from Ageas and the RAC comes after CompareTheMarket reported that catalytic converter thefts had increased across England, last year.

It analysed police data which revealed London has the highest instances of catalytic converter thefts over the three-year period, and each individual year, with a total of 15,237 from 2017 to 2020. Birmingham saw the second-highest amount of thefts.  By Graham Hill thanks to Fleet News

Researchers at King Abdullah University of Science and Technology (KAUST) in Saudi Arabia have figured out how to extract lithium, an essential part of electric vehicle batteries, from seawater in a more cost-effective way.

The study, just published in the journal Energy & Environmental Science and titled “Continuous Electrical Pumping Membrane Process for Seawater Lithium Mining,” states:

Our method may serve as a feasible approach to secure the lithium supply for future energy usage.

The ocean contains about 5,000 times more lithium than on land, but it’s at extremely low concentrations – about 0.2 parts per million. So how do we capture it?

Here’s how the KAUST team tackled the challenge using Red Sea water (and an ion is a particle, atom, or molecule with a net electrical charge):

The KAUST team solved this problem with an electrochemical cell containing a ceramic membrane made from lithium lanthanum titanium oxide (LLTO). Its crystal structure contains holes just wide enough to let lithium ions pass through while blocking larger metal ions.

The cell contains three compartments. Seawater flows into a central feed chamber, where positive lithium ions pass through the LLTO membrane into a side compartment that contains a buffer solution and a copper cathode coated with platinum and ruthenium.

Meanwhile, negative ions exit the feed chamber through a standard anion exchange membrane, passing into a third compartment containing a sodium chloride solution and a platinum-ruthenium anode.

At a voltage of 3.25V, the cell generates hydrogen gas at the cathode and chlorine gas at the anode. This drives the transport of lithium through the LLTO membrane, where it accumulates in the side chamber.

This lithium-enriched water then becomes the feedstock for four more cycles of processing, eventually reaching a concentration of more than 9,000 ppm. Adjusting the pH of this solution delivers solid lithium phosphate that contains mere traces of other metal ions — pure enough to meet battery manufacturers’ requirements.

The researchers estimate that the cell would need only $5 of electricity to extract 1 kilogram of lithium from seawater, and the value of hydrogen and chlorine produced by the cell would more than offset the cost. Further, residual seawater could be used in desalination plants to provide freshwater.

Group leader Zhiping Lai says:

We will continue optimizing the membrane structure and cell design to improve the process efficiency.  By Graham Hill thanks to Electrek.co

Recommendations for who will be legally liable if an autonomous vehicle is involved in a collision or commits an offence are set to be published by the Law Commission before the end of the year.

The organisation has completed a consultation into the legal ramifications of the technology and is now assessing responses before making its final recommendations.

Jessica Uguccioni, lead lawyer of the Law Commission’s autonomous vehicles review, says: “One of the big things we’ve determined is that you can’t just keep the current system for enforcing road traffic rules when it comes to automated vehicles.

“At the moment you can basically lock people up if they do something really, really bad on the road, like dangerous driving, but that is just not going to work with the automated driving regime.

“We need to have a system which is much more based on ensuring safety to begin with, but then understanding why things have gone wrong and preventing them happening again because a single incident can have ramifications for many other vehicles.”

In the Law Commission’s consultation document, the organisation says different levels of automation should affect where liability lies.

If the vehicle is fully autonomous and can travel without a driver in them then any people in the vehicle are merely passengers so have no legal responsibility for the way the vehicle drives and are under no obligation to take over the driving.

Determining liability for autonomous vehicles which require a human driver to be in control of the vehicle at times is more complicated.

While there will be periods when the vehicle is fully autonomous or when it is being fully controlled by a human, there will also be times when the vehicle is transferring control to the driver.  By Graham Hill thanks to Fleet News

A new type of electric vehicle (EV) charger that can deliver enough charge for 60 miles of driving in one minute is being developed in Poland.

Ekoenergetyka – Polska is working on a series of charging stations with the capacity to deliver charging speeds from 750 to 1500kW.

They will be known as the Network of Ultrachargers (NeU) and will launch in Germany and Poland by the end of 2023.

Initially, the chargers will have a capacity of 750kW – enough to provide 60 miles of range in one minute in the average passenger car or four minutes for 250 miles of range.

The company also claims that it would take around seven minutes to provide 60 miles worth of power to an electric truck.

Dagmara Duda, president of Ekoenergetyka-Polska, said: “In our R&D centres, we create and improve technologies and products that allow us to dynamically develop electromobility at its best, in all market segments, regardless of the location.”

The new solution will be implemented in Germany and Poland first. By the end of 2023, Ekoenergetyka and its partners will launch a network comprising 22 charging stations. The hubs will be located in the vicinity of motorways and in several urban centres, with the aim to serve, among others, utility vehicles and municipal services.

Ekoenergetyka-Polska has been designing and producing fast charging stations for EVs for 12 years. So far, the company has launched more than 1200 charging stations in 130 cities in 18 countries.  By Graham Hill thanks to Fleet News

Car manufacturers are reducing the number of optional features offered on new models and fitting smaller wheels in order to simplify the WLTP values for each model.

Each new car registered in Europe has a unique WLTP value, which is affected by its specification.

Options that impact a vehicle’s standard weight, drag or rolling resistance can change a vehicle’s WLTP values. Additions such as a sunroof are likely to add approximately 2g/km of CO2 to a vehicle’s emissions levels and any change to a vehicle’s specification must be calculated with complete accuracy.

Jato Dynamics says as manufacturers began the transition from NEDC to WLTP, they changed the number of options available for purchase, reducing the models on offer.

Some have reduced the average tyre size of their vehicles, as smaller wheels are less likely to create as much friction or resistance.

David Krajicek, CEO at JATO Dynamics, said: “Where options were once key money-makers for OEMs, they can no longer look to these to generate cash for fear of exceeding CO2 limits, and the waste of resources that arises from calculating every single vehicle’s unique WLTP value.

“The shift away from these additional features and the evolution towards EVs will likely continue. We cannot say with certainty what manufacturers’ model listings will look like in the future, but one thing is clear – on demand WLTP data for meeting budgets, policy guidelines, and ultimately keeping businesses running will be key.”

The changes go much further than options, however. Since 2017, many OEMs have moved away from standard internal combustion engine (ICE) vehicles, in favour of lower emissions electrified vehicles.

Last year. EV registrations more than doubled in Europe. The Netherlands, France, Finland and Ireland, have all significantly increased the number of EV models available since 2017.

The Netherlands currently has the greatest number of EVs available for purchase, rising from 18 models to 50 models in the space of four years. This is closely followed by France, with an increase of 29 models during the same period.

Finland more than doubled its electrified offering from just 13 models to 29 last year. Similarly, Ireland has more than tripled its range, rising from seven to 24 models in 2020.  By Graham Hill thanks to Fleet News

Better safety standards need to be applied to vehicles being used in the gig economy, says FleetCheck.

In a ruling that could have wider ramifications for the gig economy, the UK Supreme Court ruled that Uber must classify its drivers as workers rather than self-employed.

This will have ramifications on companies and drivers who use their own vehicles for business use.

Peter Golding, managing director at the fleet software specialist, said that the recent ruling against Uber and the company’s subsequent decision to provide a range of employment rights to drivers should be extended to the safety standards applied to cars and vans.

He explained: “This is not a complaint directed at Uber, which has an inspection regime in place for vehicles that are used as taxis, but at the wider gig economy where some home delivery and courier companies have long operated outside of normal safety bounds.”

Golding argues that there has always been some issues with people using their own “unsuitable” vehicles for business activity but, when this was limited to, for example, a relatively small number of pizza deliveries by teenagers using their old cars, the potential for issues was minimal.

However, he said: “We’re now in a situation, partially prompted by the pandemic, where gig economy drivers are delivering millions of parcels every day and the courier companies who employ them often outsource the entire issue of safety to the driver.

“This demands the question – if the recent example of Uber means that those drivers are being brought under legally-required employment practices, why does the same not apply to legally-required safety standards of those vehicles that are being used on business?

“Every other company operating vans in the country has a responsibility to ensure that they are maintained in a roadworthy condition in accordance with recognised manufacturer standards in a manner that is fully auditable.

“These duty of care measures exist to protect their drivers and other road users and, if problems occur, employers can face prosecution and a range of very serious penalties. There is no good reason for this to be suspended anywhere.”

Golding added that making this point was not intended to target the drivers themselves but the gig economy employers who enforced these kinds of working practices.

He explained: “These drivers are hardworking people who, especially at the moment, are proving important to keep the economy turning over and, in some cases, are helping to deliver services that are essential during the current crisis.

“However, that does not make the use of inappropriate vehicles right. For some home delivery companies, the only requirement is that the vehicle has an MOT and is insured for business use.

“I suspect we’ve all got our own horror stories about some of the vehicles that we’ve experienced courier drivers using, such as the 22-year-old Volvo estate that I’ve seen.”

In a sense, Golding says that those outlying vehicles are not the core issue. “The point is that even the better vehicles being used are often not fit for purpose,” he said.

“For example, if you’ve got a hundred parcels to deliver, fleet norms on safety say that you should be using a van with a bulkhead.

“If someone has an accident with those parcels unsecured on the back and front seats of their hatchback, the chances of the driver being hit hard by something heavy moving at speed is massively increased.

“Companies employing people and their vehicles on this basis are dancing around what is acceptable in safety terms. Their drivers and other road users deserve better.”

Golding believes that the fleet industry should look at ways of ensuring that these businesses start to adopt the same kind of everyday operational measures as other company cars and vans.

“Companies operating on this basis need to start to align to fleet industry norms on safety,” he added.

“These driver-owned vehicles are grey fleet and, as every good fleet manager knows, that means the employer has the same responsibilities as for company-owned vehicles.

“Home delivery and courier companies should, at the very least, be looking at driving licences, maintenance records, insisting on regular walkaround checks and ensuring that vehicles are fit for carrying their payload.

“These are safety essentials for every fleet as well as being a legal and a moral responsibility.” By Graham Hill thanks to Fleet News

Citroen has reduced the price of its range topping e-C4 Shine Plus so that all versions of the electric car are eligible for the revised plug-in car grant.

The e-C4 Shine plus previously had an on-the-price of £35,545, but is now priced from £34,995.

It follows the Government’s decision to lower the eligibility threshold for the plug-in grant to £35,000.

The grant amount was also reduced from £3,000 to £2,500.

Eurig Druce, Citroen UK’s managing director, said: “We were disappointed to hear the news that the support for consumers to make the switch to a low emission vehicle had been reduced.

For this period of transition to be a success and for electrification targets to be met, both the industry and consumers need clearer long-term guidance and support on how we will get there.

“That said, I am proud that Citroen UK’s policy of ‘Fair Pricing’ ensures that consumers will continue to be able to benefit from the full Government Plug in Car Grant when purchasing their new e-C4.”

Pricing for the new e-C4 ranges from £30,895 to £32,495 (on-the-road) when the grant is applied.  All models come equipped with LED headlights, 18-inch alloy wheels, 10-inch high-resolution touchscreen with Apple CarPlay and Android Auto, Sat Nav with TomTom Live Services, Active Safety Brake, Lane Keeping Assist, electric parking brake, rear parking sensors, rear parking camera, electrically folding door mirrors, dual-zone climate control and Citroen Connect Box Emergency and Assistance System.

The car uses a 50kWh battery pack and a 136PS electric motor. It provides a range of up to 217 miles and an 80% charge will take 30 minutes on a 100kW rapid charger.  By Graham Hill thanks to Fleet News

Buyers of new cars could face waits of six months or more and discounts could be slashed as the worldwide shortage of semiconductor chips continues to affect supplies.

Car buyers might also be asked to pay more for models with digital dashboards or built-in sat-navs – or not be offered those features at all – as manufacturers looks for ways to restrict the number of chips in each vehicle so they can keep production going.

Here, we answer key questions about the shortage, and how it could affect you.

What are semiconductor chips?

Semiconductor chips are a crucial component of modern car infotainment systems, digital dashboards, sat-navs and many other in-car electrical systems. As cars become more complex, they need more of the electronic devices to control systems. Chips are in particularly high demand right now for two reasons.

Firstly, the pandemic has driven up the popularity of consumer electronic devices such as smartphones, games consoles, laptops and tablets, diverting the supply of the chips away from the automotive sector. Car manufacturers were using far fewer chips for most of last year as heavily reduced demand led to factory closures.

Secondly, the increase in demand for new cars in the last quarter of 2020 meant many car makers exceeded their forecasts, and didn’t order enough chips early on to satisfy the demand for newly ordered cars.

Unfortunately for car makers, they are not the biggest users of computer chips so they have far less bargaining power over the producers than computer and phone companies, which buy around 90% of the supply. 

Although some of the simpler chips are made by automotive suppliers such as Bosch and Denso, it is estimated that 70% of chips for cars are made by one supplier in Taiwan, the Taiwan Semiconductor Manufacturing Company (TSMC). Only 3% of its revenue comes from the automotive sector, so it’s highly unlikely to change its business plan to accommodate car makers.

Europe currently accounts for less than 10% of global chip production, although that’s 6% more than five years ago. It wants to boost that figure to 20% and is looking at investing 20-30 billion euros to make that happen. In the meantime, it’s predicted that the chip shortage could continue into the autumn or even into 2022.

Which car makers and models are affected?

Although the chip shortage is expected to affect all car makers, some have been more open about it. Ford has recently stated that it will produce 1.1 million fewer cars this year.

Its production will be down 50% in the second quarter and 10% down in the second half of 2021. So far, Ford has built 22,000 vehicles that are waiting for chips to be installed.

Ford temporarily stopped production at its factories in the US, Germany and Turkey earlier this year, and it says the closures will affect Galaxy, Kuga, Mondeo, S-Max and Transit Connect production until 31 July. The Fiesta and Puma will also be affected, but buyers should not face such lengthy delays for these models. 

Production lines at Audi, Honda, Jaguar Land Rover (JLR), Mercedes, Mini and Toyota plants have also been hit. JLR says there will be an impact on deliveries of the Jaguar XE, XF and F-Type and the Land Rover Discovery Sport and Range Rover Evoque, but it won’t affect the Range Rover, Jaguar F-Pace and Land Rover Defender. Mercedes models affected include the C-Class, EQC and GLC.

The ripple effect of the slow-down in car production is starting to be felt at dealership level, with one Ford dealer group saying that it would no longer be offering discounts on 10 of the 15 new car models it sells, including the Fiesta, Focus, Kuga and Puma.  

Car buyers may also have to do without certain electrical systems or pay more for them. Nissan is reportedly leaving navigation systems out of cars that would normally have them, and there have been reports that Renault is no longer fitting digital dashboards to certain models.

Peugeot has reputedly changed the instrument cluster on run-out models of the 308 from a digital unit to an analogue one so it can keep up with production of newer models, including the 3008 SUV. A 5.0in digital cluster from the Mini Electric that was expected to be standard on all other versions of the Mini has now been made an optional extra. By Graham Hill thanks to What Car