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I’ve spoken about this a lot recently having had a test drive in a Ford Mustang Mach-E. Whilst it’s not perfect the build quality, materials and technology were easily a match for any prestige brand. As soon as people migrated from Mercedes and BMW to an unknown brand like Tesla the die was set.

Looking at the spec. and design of the VW ID7 I can’t see any traditional prestige car driver not being tempted by this amazing car. What do you think?

Volkswagen’s sleek electric ID7 upper-medium car will be almost five metres long and have a range of up to 438 miles, the manufacturer has announced.

The model, which is planned for launch this year in Europe, is one of 10 new electric models that will be launched by Volkswagen by 2026.

This year sees the introduction of a new ID3, the ID Buzz with long wheelbase and the ID7. An electric compact SUV and the production version of the ID2all are planned for 2026.

Thomas Schafer, CEO of Volkswagen Passenger Cars, said: “With the ID7, we are taking the next step in our electric offensive.

“Already by 2026 we will offer the widest electric range of all manufacturers in Europe – from the entry-level (ID2all) model for less than 25,000 Euros up to the ID7 as the new top model within the ID family.

“Our goal is to achieve an electric car share of 80% in Europe by 2030. As from 2033, Volkswagen will produce only electric vehicles in Europe.”

The ID7 is almost five metres long and the manufacturer says the powertrain has been designed to maximise range.

Depending on battery size it predicts WLTP ranges up to 700km and charging capacities of up to about 200kW.

The ID7’s cabin features a 15-inch infotainment system screen, an augmented reality head-up display, and a new air conditioning operating concept integrated on the top level of the infotainment system.

Other technologies available in the ID7 include a panoramic sunroof with smart glass which can be switched between opaque and transparent settings by touch control, as well as Climatronic front seats which offer cooling and heating as well as a drying function.

Travel Assist technology can support assisted lane changing on the multi-lane motorway at speeds above 56mph.

The ID7 can also independently perform assisted parking manoeuvres in different ways, including parking with memory function over a distance of up to 50m.

For this, the driver either remains sitting in the ID7 or monitors the parking procedure from outside the vehicle using the smartphone app.  By Graham Hill thanks to Fleet News.

I came across the following article and thought that it was interesting. Brand is important to the companies that own them so if you’re cut up by a branded van or car, putting lives at risk, maybe you should give them a call. Here’s the article:

As a fleet manager, keeping drivers and vehicles safe is the number one priority. But it is not the only one – you must also endeavour to keep your brand as safe as possible.

Why does it matter?

How many times have you seen a lorry bearing the name of a big brand stuck at the side of the road? Or a tradesperson’s van with their company logo smashed to pieces?

This is before we start to think about how many drivers have been seen caught in a bout of road rage.

In fact, 55% of business car drivers have previously admitted to shouting, swearing and making rude gestures to other drivers. This is not the impression of your company you want the public to be left with.

In the crashes themselves, the vast majority of focus rightly goes to the safety and health of the driver. Once that is established, and the proper support given it is important to note the impact a crash can have on a brand.

Leaving a vehicle stranded for days is not a good look and neither is the resultant potential for social media snaps to go viral.

Indeed, social media creates a risk that one bad incident in one location could soon be beamed around the world.

While previously any fault or driver indiscretion might have been seen by a few passing motorists, it now has the potential to be an image or video shared widely and quickly.

The heavy lifting of policing poor driving is often performed by a bumper sticking asking, “How is my driving?”. I don’t think I have ever met anyone that has ever made use of the number provided. So what are your other options?

The good news

The flip side of the risk is the undeniable benefit of the hundreds or thousands of drivers who see the name of your company on the roads every day. In fact, this is an important part of many company’s marketing strategies.

For instance, if you live in, or regularly visit London, you are probably familiar with the loud, red, white and blue vans of Pimlico Plumbers.

Seeing them everywhere gives the impression that they are always available if you need them. This is exactly the impression that an emergency plumber wants to cultivate. Plain white liveries would not have the same impact.

While some accidents are unavoidable, and for the most part professional drivers are just that, professional, there is clearly room to improve and provide a helping hand to drivers.

The technology available in vehicles nowadays can be a real help to both drivers and fleet managers, and more help is on the way.

Dash Cams have long been a part of a fleet manager’s arsenal, but while they might have once been used purely to help prove fault in the case of an accident, they are now evolving to stop these accidents from happening in the first place.

Furthermore, Dash Cams also often record inside the vehicle too, a useful way to protect drivers and brands from baseless claims or help understand the cause of crashes.

Ultimately, the most important thing to do is to ensure that the fleet is maintained to a high standard, drivers are given the training and schedules to help them perform at a high level and every precaution is taken to protect the brand on the roads, including new technology.

Your brand is a valuable asset, handle it with care.  By Graham Hill thanks to Fleet News

There has been a great deal of discussion recently about this subject and whether it’s a product worth considering? I’m not in favour for reasons that are generally not mentioned. You are often restricted to a limited range of vehicles and even to a single manufacturer.

As the car is leased by the company they use a group insurance policy which means you could lose your no-claims discount. You are generally expected to keep precise mileage records. You should never replace a company car with Salary Sacrifice because although the costs are taken out of your wages before tax and NI deductions all running costs are effectively paid for by the company when all you pay is benefit in kind tax out of your net income.

There are also pension, sickness, maternity and paternity leave implications and when you change jobs you need to explain your income to the new employer as your gross income will be shown net of the salary sacrifice. Then there’s the question of what happens if you change jobs, who will be responsible for the early termination of the car. Leasing companies will not transfer the agreement that is a corporate agreement in your employer’s name into the name of you the employee.

But it’s your choice so here goes:

Salary sacrifice (sal/sac) is increasing in popularity among companies as a way of giving employees a cost-effective way of accessing a low emissions car. But a high uptake is not always guaranteed. We look at how to make a scheme work for both businesses and staff…

1 Make sure you/your employees understand how it works

Sal/sac works in a different way to traditional car funding – both for companies and retail customers.

The schemes enable businesses to provide employees with access to new vehicles by ‘sacrificing’ some of their pre-tax salary each month over a fixed term.

As well as leasing the vehicle, the fixed sum usually also includes other running costs such as insurance, vehicle excise duty (VED) and maintenance.

Participants do have to pay benefit-in-kind (BIK) tax on their vehicle, but the current tax regime makes sal/sac a cost-effective way to get behind the wheel of a fully-electric or ultra-low emission car.

David Carey, product management and development at Alphabet (GB) says:

“By selecting a low- or zero-emission car employees can pay comparatively little tax – effectively making their money go further, particularly when compared with a car loan or hire purchase made after tax.

“So, while an EV may initially appear to be more expensive, lower running costs coupled with significant reductions in BIK and the income tax and national insurance contributions-free treatment of the ‘sacrificed’ amount can result in long-term savings for participating employees.”

From the moment a scheme is launched, it is essential to ensure total clarity surrounding topics such as early termination fees, maternity leave and what happens when an employee leaves the company.

Organisations can take steps to minimise the impact and costs of any of these events.

“This can be via policy, by paying for the risks from the scheme or insuring the risks through a number of different products in the market such as termination insurance or payment support products,” says Christopher Caddick, head of business development at JCT600 Vehicle Leasing Solutions (VLS).

Organisations should also make employees aware of how sal/sac can be affected by potential tax changes. For example, as BIK rates rise, so will their monthly company car tax bill.

This became apparent after Chancellor of the Exchequer Jeremy Hunt provided BIK rates up to April 2028 in his Autumn 2022 Statement – with values for battery electric vehicles (BEVs) increasing to 5% over this time. 

Carey adds: “Although the Autumn Statement set out an incremental increase to BIK tax rates of 1% per year from 2025, the average electric vehicle (EV) driver on a £35,000 list price at the 20% tax rate will only be paying an extra £6 a month from April 2025. 

“This provides much needed certainty post-2025 and means employees can still benefit from favourable tax rates for EVs through salary sacrifice schemes when compared with petrol or diesel vehicles.”

2 Consider how to integrate the scheme into existing operations

Sal/sac schemes must, invariably, be integrated into existing operations in the most appropriate way possible, but what is the best way to achieve this?

For example, do you want the scheme to be linked to an existing portal? Or would you prefer colleagues to access it via a standalone website where everything – from educational support documents to ordering and ongoing management – is available? 

“If you are looking to launch a salary sacrifice scheme alongside any other car schemes in your business – be that traditional company car, cash allowances or employee car ownership schemes – then it is worth having all these schemes available in one portal where employees can weigh up the benefits and costs of each scheme, hopefully alongside one another,” says JCT600’s Caddick.

“The ultimate aim is to help colleagues make informed choices that are right for them. 

“These portals should also deliver the full employee journey from scheme details to access documents, ordering and managing vehicles.  Managing several schemes across various portals can become confusing and more complex than it needs to be for both a business and its employees.”

3 Be clear on why you’re introducing sal/sac

Sal/sac schemes have traditionally been perceived as a staff benefit to allow employees who are not eligible for a company car to access a new vehicle. But an increasing number of companies are using them to replace their traditional company car scheme, such as Willmott Dixon (see case study, below).

So what must companies be mindful of? Paul Gilshan, chief executive of Tusker, says:

“It is worth viewing a salary sacrifice scheme as an inclusive, rather than exclusive, benefit from the outset, which may necessitate re-looking at pre-existing company policies around eligibility.”

Gilshan adds that an EV-focused sal/sac benefits scheme can have a huge impact on lowering overall emissions for a business. Tusker has found that companies frequently look to market the schemes on the both the strength of its environmental credentials as well as the economic benefits to employees.

4 Build a communications plan

Ensuring newly-launched sal/sac schemes are explained to employees clearly is essential for both their immediate and long-term success.

Any communications plan should be based around the best channels available within your organisation. Does it have an intranet or use regular email newsletters? Would employees prefer videos to browse in their own time, or would webinars or live, in-person seminars be more suitable?

“A communications plan should be tailored to you and your employee population,” says Caddick.

“What works well for one business will not necessarily work well for another.

“Build a communications plan based on the tools you have available, combined with the knowledge of how best to communicate with employees.”

Tusker has witnessed a huge take-up of webinars following the Covid-19 pandemic, which allows large numbers of drivers to learn more about the scheme in a short space of time. It also produces a number of videos which are able to be hosted on intranet sites, or via links to its YouTube channel which help employers explain the scheme to employees.

“Equally, in-person launch events, often featuring a selection of available vehicles and product experts, can be very popular, and often result in a high rate of employee engagement,” he adds.

5 Choose the right sal/sac provider

Selecting the right partner who is able to tailor your sal/sac scheme to meet your objectives and requirements pays dividends.

For example, do they have access to the vehicles you require? Are they fully familiar with all the back-office functions that will be necessary? Can they support your growing requirements in full?

For peace of mind, it is important to ensure your provider has a proven history of delivering sal/sac schemes across businesses of all sizes.

“Implementing a salary sacrifice scheme often involves working with multiple internal stakeholders inside a company as well as alongside any other existing benefits suppliers, so robust processes and experience of these complex transactions are crucial to a smooth launch,” says Tusker’s Gilshan.

“Equally, it is important to ensure the scheme is as risk-free as possible for the employer, as salary sacrifice schemes can be opened up to far more employees than a traditional company car scheme.”

Selecting a provider which has established relationships with car manufacturers and suppliers can be immensely beneficial.

JCT600’s Caddick adds: “There are various solutions available on the market today, but, ultimately, you’re not procuring a supplier’s product, but a partner to your new scheme for your employees.

“Look for a provider with knowledge and experience in delivering employee-focused car schemes, clear roles and responsibilities and a focus on the overall solution.

“Ensure they have the latest technology to deliver a seamless employee journey.

“But, above all, look for a team which will support your employees through the scheme, while delivering service in line with values aligned to your business.”

Case study: Willmott Dixon

Construction and property services business Willmott Dixon switched its car funding policy from a standard three-year operating lease to salary sacrifice at the start of 2021.

Built and launched by fleet management company CLM in consultation with Willmott Dixon’s sustainable transport team, the company is using its sal/sac scheme to ensure rapid carbon emission reductions thanks to the significant tax advantages for electric vehicles (EVs). 

More than 600 drivers have already opted into the scheme, with half of those previously having taken the cash allowance. 

“I believe the scheme’s popularity will continue increasing as replacement cycles on the pre-existing company car scheme come round,” says chief financial officer Graham Dundas (pictured), who also chairs the sustainable transport team.

“We already have 150 more drivers in the salary sacrifice scheme than opted for the legacy company car scheme before its launch.

“It’s evident that colleagues really value the option to access low emission vehicles, preferably EVs, in a tax-efficient way.” 

The average CO2 emissions of the cars available through the scheme is 15g/km, and it is currently proving most popular among employees in higher tax brackets.

Dundas says the key to successfully implementing a salary sacrifice scheme is ensuring your organisation and sal/sac partner have the most comprehensive understanding of drivers’ requirements and the journeys they undertake. It is equally important schemes are explained clearly to all colleagues from the outset to secure fully-informed decisions.

 

“We’ve always recognised that take-home pay and the kind of car you drive are emotive topics – and there were always likely to be a lot of questions,” says Dundas. 

“Consequently, it’s important that colleagues clearly understand what a sal/sac scheme means for them from the moment it’s launched.”  

Willmott Dixon worked with CLM to initially carry out virtual presentations “to each of our regional offices which were exceptionally well received”, adds Dundas.

“We’ve also listened to all the feedback – and intend to continue doing so. 

“So far, we’ve adjusted our mileage reimbursement rates for EVs as HMRC-approved rates were slow to respond to rising costs, and we intend to become more flexible with choice lists for more junior people to ensure their requirements are catered for. 

“I believe you do need to monitor your sal/sac scheme regularly once it’s operational to ensure it continues to meet your organisation’s and drivers’ requirements – but this is a small price to pay for the benefits that accrue.”  By Graham Hill thanks to Fleet News

Tesla’s January price cut could not have come at a worse time for the used electric vehicle (EV) market, with the full impact not yet known, according to pricing experts.

The manufacturer announced overnight it was cutting the prices on the Model Y and Model 3 by thousands of pounds.

Price reductions were introduced in the US and European markets, with the Model 3 falling to £42,990 and the Model Y to £44,990, representing drops of £5,550 and £7,000 respectively, for the entry level models.

Prices were also reduced by as much as £8,000 on models higher in the range like the Model Y Performance.

Tesla’s price drop, however, comes after prices were increased last year. The manufacturer upped the prices of the Model 3 and Model Y in the UK by more than 4% – £2,300 on average – in June 2022.

Then the entry-level rear-wheel drive Tesla Model 3 saloon was the subject of a £2,500 price increase from £45,990 to £48,490, while the long-range variant of the Tesla Model Y SUV increased by £2,000 from £55,990 to £57,990.

Following the recent reduction, however, the price of a one-year-old standard range used Tesla fell by £1,400 overnight, from an average of £38,994 on January 15, to £37,599 on January 16, according to data from Auto Trader.

USED EV MARKET

Philip Nothard, insight and strategy director at Cox Automotive, told Fleet News: “With volumes of used EVs entering the market increasing by a reported 800% at the end of 2022, Tesla’s re-pricing strategy couldn’t have come at a worse time and the ripples have yet to reach the shore.

“Tesla has a different strategy from incumbent OEMs and is apparently less concerned about residual values (RVs) than its peers.

“It doesn’t have the same retail infrastructure as the incumbents, and, while that has many observers scratching their heads about how used Teslas will fare in the used market, it also means they don’t have retailers to appease either.”

However, Nothard added: “If any OEM can navigate these stormy waters, it’s probably Tesla.”

The used battery electric vehicle (BEV) market, while recording its best-ever annual performance last year with a record 71,071 units sold, a rise of 37.5%, still represents a small proportion of overall used sales.

Used BEV transactions equated to just 1% of the used market in 2022, up from 0.7% in 2021. Sales of hybrid electric vehicles (HEVs) rose 8.6% and plug-in hybrid electric vehicle (PHEVs) transactions were up 3.6%.

Combined, they represented 4.1% of the market (up from 3.3% in 2021).

NEGATIVE IMPACT ON RVs

In such a fledgling market, dramatic reductions in used values for BEV models, not just Tesla, have been reported on some models in recent weeks, according to Cap HPI.

It says that the fall in RVs was entirely expected as part of a market adjustment to values that were previously unsustainably high and does not herald a collapse in demand for BEVs.

The used value for a one-year-old Tesla Model 3 long range with 20,000 miles on the clock has fallen by £11,600, or more than 25%, since the middle of September.

Dylan Setterfield, head of forecast strategy at Cap HPI, explained: “Used values for many BEV models were strong through 2022.

“In many cases, nearly-new retail values were above list price, some by a considerable margin.

“This was clearly unsustainable and our forecasts reflected that, with large negative adjustments applied.”

Looking beyond Tesla, Nothard says there is no doubt that used EVs are under “scrutiny and pressure”, and they will be so for the foreseeable future.

He explained: “It’s a complex landscape with a demand versus supply imbalance, the price disparity between EV and ICE (internal combustion engine) and ongoing consumer concerns about charging infrastructure is coinciding with inflation and a cost-of-living crisis.”

However, he stressed: “It’s important to remember that all used vehicles, including electric ones, increased in value post-pandemic because of the shortage of new cars in the market. So, while we are in a depreciating marketplace with values dropping, prices remain inside the expected parameters in the main.

“The other dynamic we’re seeing is a firming up of ICE vehicle values. As we enter a third year in new vehicle supply shortages, coupled with a decline in the number of petrol and diesel derivatives in the overall new vehicle parc, we could see used ICE values increase as demand remains strong.”

He added: “We still have to determine used EVs’ final position in the market, and there may be some pain before finding the right level. But their prices will stabilise at some juncture – it’s a matter of when and not if.”

Jon Lawes, managing director at Novuna Vehicle Solutions, told Fleet News the used EV market had experienced price drops in recent months as the number of used vehicles returning to the market started to increase.

“The decrease in Tesla list prices looks like it has had a negative impact on confidence, but, in many cases, the used value reductions have just shifted models to more sensible levels,” he said.

“In general, EVs still command a significant premium over comparable ICE vehicles and, while the Tesla price drop may have shaken confidence in the market today, leasing companies are forecasting residual values for three-and-four-years’ time for new contracts.

“Price reductions are bound to be a hurdle to navigate on the road to EV mass adoption.”

FLEETS MANAGE FALLOUT

Lorna McAtear, fleet manager at National Grid, told Fleet News at 10, that, following the Tesla price cut, she had received a “barrage” of emails.

“Tesla is one of those companies that, as a fleet manager, you love and hate in equal measures,” she said.

“It’s an absolute headache, but we will end up with more vehicles back in price brackets that our drivers can get a hold of again in their banding.”

Meanwhile, Association of Fleet Professionals (AFP) chair Paul Hollick says both leasing companies and fleet managers hoped it would have been more of a “contained change”.

“It just got dropped on us, which, for me, proves that Tesla is not a car for corporate fleets,” he said. “It’s a retail solution.”  

Hollick says it could also be an issue for those that have just bought Teslas or have them on order at previous prices.

“The differences between the new and the old prices are substantial, and a move of this kind does, unavoidably, create ill-feeling,” he said.

“The company would do well to introduce some kind of redress.”

A Tesla spokesperson said that any customers with orders should contact their sales representative to discuss the price changes.

In a statement, Tesla said: “Our focus on continuous product improvement through original engineering and manufacturing processes has further optimised our ability to make the best product for an industry-leading cost.

“As we exit what has been a turbulent year of supply chain disruptions, we have observed a normalisation of some of the cost inflation, giving us the confidence to pass these through to our customers.”

Lawes believes that Tesla’s price drop is a sign that they are facing competition from existing and new entrants, and the recognition of a price point that could be unattainable to many. “The demand for their product is still there, they just need their target audience to be able to access it,” he said.

NOT FOLLOWING TESLA’S LEAD

The Tesla Model Y was the most popular EV in Europe in 2022, according to data from Jato Dynamics.

The manufacturer sold 137,052 Model Ys in Europe giving it significant headway against rival vehicles. The second best-selling EV was the Tesla Model 3, with 91,475 registrations.

However, Tesla’s combined performance was not enough to secure the position of leading EV manufacturer.

Volkswagen Group was the best-performing brand by volume, with 349,200 EVs registered across Europe in 2022.

Fleets hoping that other EV makers would follow Tesla’s lead in cutting the prices of plug-in products will be left disappointed.

Stellantis, the parent company of several major brands, including Vauxhall, Citroën, Peugeot, Fiat and Alfa Romeo, told Fleet News it had “no plans” to follow Tesla’s lead by cutting prices.

It was a similar story at Volkswagen Group, responsible for VW, Audi, Škoda and Seat brands, which confirmed it would not be cutting plug-in prices any time soon.

“Our BEV order backlogs carry well into 2023, with some models already sold out for 2023,” said a VW Group spokesperson. “Our priority now is to deliver the vehicles to customers.

“We will continue to closely monitor further developments in both the cost and market situation for all-electric vehicles in all core markets and take appropriate action if necessary.

“As a matter of principle, we do not focus on the quantity of our business, but on its quality. High profitability, therefore, takes precedence over high volumes.”

Kia UK also has no plans to cut prices on any of its current EVs. A Kia spokesperson said: “We believe to do so would be detrimental to our relationships with private and fleet customers, and the residual values of our vehicles.”

Ford announced it was cutting prices of its electric Mustang Mach-E crossover weeks after the Tesla announcement.

However, its decision to lower pricing of the Mach-E by an average of about $4,500 (approx. £3,700), dependent on the model, will only be available in the US.  By Graham Hill thanks to Fleet News

Fleets are being urged to educate their drivers on new safety technology being fitted as standard on company cars to save lives and money. There should also be an onus on dealers to ensure that customers fully understand the equipment fitted in their new cars.

A range of advanced driving assistance systems (ADAS) devices were made compulsory on all new models in the EU last year and, as a result, are also being made part of UK specifications.

“These safety systems have the potential to be highly effective, but drivers need to understand how to incorporate them into their daily driving,” explained Ian Pearson, head of insured lease at Arval UK. 

“It’s worth considering the historical lessons that can be drawn from reversing sensors. These have now been standard fitment on most fleet cars for a long time and the technology is well-proven, but even where reversing cameras are operational, drivers still back into stationary objects every day and sometimes at speed.

“In fact, it may be the case that they have become over-reliant on listening for the beeps and don’t use their mirrors, which shows the importance of using the device properly.”

Pearson says the technology available to today’s company car drivers is not “fail-safe” but there to assist the driver – and that can only happen if more is done to make them aware of how to make the best of features, such as lane departure and driver fatigue warning systems.

“It’s not about the technology in isolation, but how it interacts with the person at the steering wheel,” he added.

There is limited data on which ADAS devices were proving most effective for fleets when it came to improving safety, but Pearson claims that in itself underlined the need for more information to be given to drivers.

“The real-world success of ADAS is something that is difficult to measure,” he said. “If a driver drifts out of lane on a motorway and the steering corrects them, how do you know whether a collision has been avoided?

“What is important is that all of these devices have a potential role to play and could save the lives of employees out on the road if they are taught to use them correctly.”

Educating drivers does not need to be complex. Most of it can be done through some form of e-learning that is reinforced through periodic reminders.

“Use of ADAS should also be incorporated into fleet manager reviews when an accident takes place,” Pearson continued.

“However, we do know from Arval Mobility Observatory research that the ADAS devices most valued by fleet managers are collision avoidance and automatic emergency braking systems. This makes sense as they represent the technology most likely to prevent full-on collisions.”

Getting the most out of ADAS devices is not just purely a safety issue but also important in terms of extracting the most value from their cost.

“While the technology is generally a standard fitment on new cars, it is being incorporated into the price, so businesses are already paying for this potential safety,” said Pearson. “Also, it increases the cost of repair when there is an accident.

“There is a strong argument that fleets are – whether consciously or not – making quite a big investment in this technology and so should work to maximise its benefit.” By Graham Hill thanks to Fleet News

Diesel drivers are paying around 17p per litre more for a litre of fuel than those with petrol vehicles, despite the wholesale cost being the same.

It means retailers are making almost three times the margin on every litre of diesel they sell, according to figures from RAC Fuel Watch.

The average price of petrol across the UK stands at 146.63p while diesel is 164.26p despite both fuels selling for around 114.5p on the wholesale market.

Since the start of March, RAC data shows the average weekly wholesale price of diesel has fallen 5p a litre while unleaded has remained the same (diesel – 119p to 114.5p; petrol 114.6p to 114.7p).

RAC fuel spokesman Simon Williams said: “The forecourt price disparity between petrol and diesel across the UK is absolutely shocking given their wholesale prices are now virtually identical. 

“For retailers to be taking a margin of nearly 20p a litre on average throughout March, compared to the long-term average of 7p, is devastating for every driver and business that relies on diesel.

“The price of a litre of diesel should have already come down to around 152p, and now the wholesale price is the same as petrol at 114p we really should soon be seeing forecourts displaying prices of 147p. Sadly, this seems unlikely given current retailer behaviour.”

The big four supermarkets, which dominate UK fuel retailing, are charging 162p for a litre of diesel, on average. Williams labelled this “outrageous”.

He added: “As the supermarkets buy so frequently they have had plenty of time to pass on the lower prices they are benefitting from on the wholesale market to drivers at the pumps, but they remain totally resolute in their refusal to cut their prices substantially which is nothing short of scandalous, particularly in a cost-of-living crisis.”

Costco has bucked the trend and is charging just under 150p a litre for diesel, at the moment.

A number of independent retailers are also charging far less than their supermarket rivals, which is a sign of how much fuel retailing has changed.

“If smaller retailers can afford to make ends meet with lower margins and smaller sales volumes, then what excuse can the supermarkets possibly have for keeping their diesel prices so high?

“We hope the Competition and Markets Authority, which is currently reviewing the road fuel market in the UK, is keeping a watchful eye on this pricing behaviour as we believe it’s against the interests of diesel drivers up and down the country,” Williams said.  By Graham Hill thanks to Fleet News

UK factories made an additional 8,050 cars, with volumes buoyed by an easing of supply chain shortages, according to new figures published by the Society of Motor Manufacturers and Traders (SMMT).

UK car production rose 13.1% in February, up to 69,707 units, with production for both home and overseas markets seeing double digit increases, up 20.3% and 11.5% respectively.

SMMT says that exports drove the overall uplift; some 56,634 cars were produced to fulfil global orders, up from 50,786 a year before and accounting for 81.2% of output, with the majority of these exports (59.6%) heading into the UK’s largest trading partner, the EU.

Shipments to the EU rose 6.5%, helping to offset declines to the US (-19.9%) and China (-21.6%). Exports to Turkey, Japan, Australia and South Korea, meanwhile, also rose, collectively by 85%, and together represented a total of 6,498 cars, or 11.5% of exports.

The UK’s automotive industrial transition to hybrid, plug-in hybrid and battery electric vehicles continued, with combined volumes surging 72.2% from 15,905 to a total of 27,392 units and accounting for two in five (39.3%) cars produced in the month.

Mike Hawes, chief executive of the SMMT, said: “February’s growth in UK car production signposts an industry on the road to recovery.

“The fundamentals of the sector are strong; a highly skilled workforce, engineering excellence, a sector that is embracing new electrified vehicle manufacturing and wide ranging capabilities in the EV supply chain.

“To take advantage of global opportunities, however, we must scale up at pace and make the UK the most attractive destination for automotive investment by addressing trading and fiscal costs and delivering low carbon, affordable energy.”

By Graham Hill thanks to Fleet News

Tesco has increased the cost of its electric vehicle (EV) charging network, with rates now starting at 44p per kWh.

Drivers using Tesco charge points will now pay 44p per kWh at a 7kW charger and 49p per kWh at a 22kW charger.

The supermarket’s rapid chargers now cost 62p per kWh at a 50kW device and 69p per kWh for the fastest 75kW units.

The changes, which take effect from April 3, follow the introduction of a tariff for non-rapid devices in November 2022.

Payment will have to be made through the Pod Point app for the AC chargers or by contactless for the rapid points.

Using the slowest charger, it will now cost around £12 to add 100 miles worth of range to the average family EV.

The retailer said the increased EV charging tariff contributes towards covering infrastructure costs and energy costs incurred by EV drivers charging across the network.

Tesco first announced it had introduced free chargers at 100 of its Tesco stores in 2019. It was subsequently expanded to 600 stores and 2,500 points. The network was launched by Tesco, Volkswagen and Pod Point.

The average cost of using a public AC charger (up to 7kW) is 37p per kWh, according to the AA, while a rapid charger costs 66p per kWh.  By Graham Hill thanks to Fleet News

Electric vehicle (EV) drivers are potentially missing out on savings worth hundreds of pounds by not switching to specialist home charging tariffs, research suggests.

Mina found that the average pence per kWh cost for charging at home was marginally lower than the average overall home energy cost.

The EV payment specialist says that this suggests drivers are not using lower off-peak or EV-specific tariffs enough.

The average home charge was 30p per kWh – only slightly less than the average cost of all home electricity at 34p per kWh for the period analysed – according to Mina’s analysis of more than 60,000 plug-in events.

Furthermore, Mina found that there were more than 800 different home tariffs which, it says, causes customer confusion and an inability to work out if, or how, they should move to a more suitable tariff.

Mina says that this potentially meant some drivers were paying more than six times more than they could be to charge: equivalent to spending £15 more on each home charge for a typical EV with a 60kWh battery.

Over 20,000 miles a year, that would equate to around £1,500 that could otherwise have been saved.

“The lowest rate in our data of 60,000 charges was 5p per kWh for an EV specific home tariff, yet the average cost was 30p per kWh,” said Mina CEO Ashley Tate.

“Clearly, those two numbers are a long way apart which suggests there is more work to do, in that not enough drivers are on specific tariffs that will save them money.”

Tate claims that there is no lack of desire from energy suppliers to offer EV tariffs and help drivers make the switch, but with current wholesale energy costs being so high and unpredictable, they are finding it hard to launch these tariffs.

However, he added: “I do think we’ll see more of these coming to the market over the next two years. They are vitally important for the development of the EV market.

“We have spoken to some EV owners who have been contacted by forward-thinking energy firms about the possibilities of switching to a more suitable tariff, and that’s really good to hear how they are changing over and saving money.”

Octopus Energy’s Intelligent Octopus tariff, for example, allows drivers to charge for 10p an hour during a six-hour window when it is best for the grid.

Alex Schoch, head of flexibility at Octopus Energy Group, said: “As more low-cost renewables join the grid, these costs will only fall further – helping reduce the impact of travel on our wallets, as well as the planet.”

Often EV-specific tariffs have a shorter low-cost window at night for charging than standard off-peak, but the charges are considerably less during that period.

Issues drivers should be aware of when considering an EV tariff

• Do you understand how much energy you are using at home to charge your EV?
• Is a nightly 4-5 hour EV tariff window enough for daily charging needs, and can you schedule your EV charge to fit into it?
• Often the accompanying peak tariff rate is higher than average. Would the rest of your home energy bills negate the savings of the EV-specific element?
• Would a standard off-peak tariff, which is a higher cost at often around two-thirds that of peak, but goes on for longer (usually around eight hours), be a better bet?

By Graham Hill thanks to Fleet News

Wireless charging of electric vehicles (EVs) at up to 500kW could be possible following the development of new technology in Sweden.

Researchers at Chalmers University of Technology have pushed inductive power transfer technology further to enable high-power battery charging that is ready to presented to the fleet industry.

The initial study focussed on using the technology for charging electric urban ferries but Yujing Liu, professor of Electric Power Engineering at the Department of Electrical Engineering at Chalmers said for the electric trucks of the future, there is a potential application.

The wireless charger uses a new type of silicon carbide semiconductor and a newly developed copper wire that is as thin as a human hair. These two factors make transmitting high power through air a realistic proposition.

Charging power of 150kW to 500kW are possible, with no physical connection between the vehicle and charger. This makes charging at a depot, for example, more straightforward and removes the need for heavy charging cable.

Liu said: “A key factor is that we now have access to high-power semiconductors based on silicon carbide, known as ‘SiC components’. As a power source for electronic products, these have only been on the market a few years. They allow us to use higher voltages, higher temperatures and much higher switching frequencies, compared to traditional silicon-based components.

“This is important because it’s the frequency of the magnetic field that limits how much power can be transferred between two coils of a given size.”

Liu emphasised that charging electric vehicles entails several conversion steps; between direct current and alternating current and between different voltage levels.

“So, when we say that we’ve achieved an efficiency of 98% from direct current in the charging station to the battery, that figure may not mean much if you don’t carefully define what’s measured.

“But you can also put it this way: losses occur whether you use ordinary cable-based conductive charging or charge by using induction. The efficiency we’ve now achieved means that the losses in inductive charging can be almost as low as with a conductive charging system. The difference is so small as to be practically negligible. It’s about one or two per cent,” Liu explained. By Graham Hill thanks to Fleet News