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Tesla expanded its UK dealer network to 25 sites during 2020 and plans further network growth in 2021.

It represents a U-turn on company founder Elon Musk’s 2019 declaration that Tesla would close all its showrooms in favour of an online-only sales model.

The latest strategy follows reports of Tesla’s value reaching a record £516 billion, making it worth more than Toyota, VW, Hyundai, GM and Ford combined.

Six new Tesla locations were opened across the UK in 2020, with new showrooms appearing in Newcastle, Winchester, Gatwick, Belfast, Birmingham and Chelmsford.

A new site in Glasgow is also poised to open this year.

The Californian car maker says it has boosted its aftersales operation significantly and now has 15 service locations across the country, with more than 300 service team members.

This has led to a 130% increase in available service appointments and a 60% reduction in waiting times for appointments, according to the brand.

Tesla says it can reduce the time vehicles need to be in a workshop using remote diagnosis and can perform a service four times faster than conventional garages, enabling it to operate with a smaller footprint.

The brand achieved almost 25,000 registrations during the year, outperforming established brands such as Fiat, Mazda, Porsche and Suzuki.

Its Model 3 topped UK monthly sales charts twice during the year – once in April and then in December.

The vast majority of sales are the Tesla Model 3 – Tesla insiders suggest the Model 3 accounts for approximately 90% of UK Tesla sales YTD. That makes the Model 3 the UK’s best-selling battery electric vehicle (BEV), and the UK’s second best-selling compact executive model behind the BMW 3 Series.

Tesla’s UK Supercharger network also grew during 2020 with the addition of 180 new chargers in 20 locations, bringing the total to more than 600 chargers in 70 locations. By Graham Hill thanks to Fleet News

I don’t think that it would surprise anybody that new car registrations were drastically down in 2020 but the interesting statistic is the split of cars. Private registrations suffered the least with the larger fleets doing slightly better but the business registrations were down 43.3% (see chart below).

However, I would suggest that whilst these figures look dreadful many customers, both corporate and consumer extended lease contracts last year and those that had to change their cars decided to go down the used car route as there was a grave lack of new car stock available.

Here is the report and breakdown of the figures for 2020:

Fleet and business registrations fell by 32% in 2020, with 400,000 fewer company cars registered compared to 2019, but fleets were behind a massive increase in the uptake of electric vehicles (EVs).

The new figures, published today by the Society of Motor Manufacturers and Traders (SMMT), show overall demand in the new car market fell to the lowest level since 1992.

They also reveal the continuing decline of diesel, with 55% fewer diesel cars registered in 2020 compared to 2019.

The SMMT sales figures show there were 883,557 cars registered to fleet and business during 2020, compared to almost 1.3 million vehicles the previous year.

However, the latest sales data also reveals that in December, fleet and business registrations were only 9% down compared to December 2019.

It suggests a recovering company car market, with 85,489 fleet and business registrations, equating to 64% market share.

Overall, the UK new car market fell by almost a third (29%) in 2020, with annual registrations dropping to 1,631,064 units.

Against a backdrop of Covid-19, the industry suffered a total turnover loss of some £20.4 billion, with private vehicle demand falling by 27% overall, amounting to a £1.9bn loss of VAT to the Exchequer, says the SMMT.

Mike Hawes, chief executive of the SMMT, says that 2020 will be seen as a “lost year” for automotive, with the sector under “pandemic-enforced shutdown” for much of the year and uncertainty over future trading conditions taking their toll.

However, he said: “With the rollout of vaccines and clarity over our new relationship with the EU, we must make 2021 a year of recovery.

“With manufacturers bringing record numbers of electrified vehicles to market over the coming months, we will work with Government to encourage drivers to make the switch, while promoting investment in our globally-renowned manufacturing base – recharging the market, industry and economy.”

Demand fell across all segments bar specialist sports, which grew by 7%, although Britain’s most popular class of car remained the supermini, retaining a 31% market share despite a 26% decline in registrations.

Meanwhile, although falling by a combined 33%, petrol and mild hybrid (MHEV) petrol cars made up 63% of registrations, while diesel and MHEV diesels, down 48%, comprised almost a fifth of the market.

Fleets adopt more electric vehicles

Battery and plug-in hybrid electric cars accounted for more than one in 10 registrations – up from around one in 30 in 2019.

Demand for battery electric vehicles (BEVs) grew by 186% to 108,205 units, while registrations of plug-in hybrids (PHEVs) rose 91% to 66,877.

Most of these registrations (68%) were for company cars. Gerry Keaney, chief executive of the British Vehicle Rental and Leasing Association (BVRLA), says that 2020 has been a “tipping point” for EV uptake and demonstrates what can be achieved when Government works closely with fleets to develop a set of powerful grants and tax incentives and invest in a robust public charging network.

“While only a handful of EVs were on sale in 2011, there are now more than 100 models available.” Poppy Welch, head of Go Ultra Low

“The latest BVRLA data shows that the fleet sector continues to lead the charge towards zero emission motoring, with battery electric vehicles responsible for 21% of company car registrations in the three months to October 2020.”

With so much uncertainty surrounding the impact of EU Exit, coronavirus and the economic downturn, Keaney says that the Government must do everything it can to support the vehicle buyers that underpin the UK’s new car market.

“With the next Budget just weeks away, the Chancellor must continue to ring-fence the long-term grants and tax incentives that make electric vehicles affordable,” he said.

“He must also resist the urge to pile more motoring tax increases on fleets and drivers that have yet to make the transition to zero emission motoring.

“Many of these businesses and individuals are struggling financially and can’t yet find an electric vehicle that meets their needs or budget.” 

More than 100 plug-in car models are now available to UK buyers, and manufacturers are scheduled to bring more than 35 to market in 2021 – more than the number of either petrol or diesel new models planned for the year.

Poppy Welch, head of Go Ultra Low, believes that in the context of the new car market, 2020 will be remembered as the breakthrough year for EVs.

“After a ninth successive year of growth in EV registrations, we’ve now seen market share rise to 10.7%,” she said.

“This has been made possible, in large part, by the Government’s ongoing support and long-term vision, combined with the automotive industry’s commitment to developing a wide range of zero-emissions vehicles that are clearly convincing the public with their performance, financial and environmental credentials.

“While only a handful of EVs were on sale in 2011, there are now more than 100 models available.”

When will the market get ‘back on its feet?

Ashley Barnett, head of consultancy at Lex Autolease, said that the 29% year-on-year drop really “hammers home” just how challenging the coronavirus pandemic has been for the motor industry.

“The market will take some time to get back on its feet,” he said. “How long that is remains to be seen.”

He added: “The growth in EVs is comforting but ultimately is from an extremely low base – only 6.6% of vehicles on the roads are EVs (including PHEVs).

“All eyes will be firmly on the spring Budget and the rumoured plans for a road pricing scheme which may go some way to recoup lost tax revenue when EVs begin to overtake conventional ICE models.

“The Chancellor has an opportunity to reassure would-be EV drivers that fiscal incentives will remain on the table and incentivise them to take the first step into alternatively-fuelled vehicles.”

Jon Lawes, managing director of Hitachi Capital Vehicle Solutions, expects economic uncertainties to continue into the first quarter of 2021, while the pandemic dampens consumer confidence.

However, he said: “The UK’s long negotiated tariff-free trade agreement with the EU should provide a welcome boost for the motor industry to lay the foundations to support a recovery in the sector.

“Similarly, the positive trend in EV uptake demonstrates that the transition to electric will gather momentum in the months ahead heightened by the wide range of new EV models coming to market in 2021 and growing consumer demand.”

By Graham Hill thanks to Fleet News & SMMT

A £120,000 Range Rover Autobiography was stolen from a supermarket carpark in Walthamstow, London, in just 80 seconds by thieves taking advantage of weaknesses in the keyless entry system.

Keyless car thefts are increasingly common, as criminal groups reverse-engineer the latest manufacturer security tech to steal valuable vehicles quickly and discreetly.

The vehicle was recovered by the Metropolitan Police within 12 hours, thanks to the fitment of a tracking device.

Clive Wain, head of Police liaison for Tracker, said: “It is believed that this vehicle was stolen by professional criminals who followed the owner to the supermarket from her home, waiting for an opportunity to steal the prestige model.

“At home, the valuable car was always well protected on the driveway, with a wheel clamp fitted and a van parked across the driveway entrance to prevent any chance of theft. CCTV footage of the supermarket carpark clearly shows the thieves breaking into the car and driving away in less than two minutes, in an undisputable case of organised crime and keyless car theft.”

The car’s owner, Mrs Syuleyman, initially did not believe the car would ever be recovered. She said: “I know the risk of theft is high for such a valuable car, particularly as it has had some additional modifications. That is why we always protect the car so carefully when it is parked at home. I never imagined it could be stolen so quickly and easily from a public carpark while I was shopping a few metres away.

In 2019, 92% of the cars Tracker recovered were taken without using the keys, up from 88% in 2018 and 26% higher than four years earlier.

Wain continued: “When Mrs Syuleyman’s car was recovered, it appeared that the thieves had searched it for tracking devices before leaving it parked unaccompanied to see if the police would track its whereabouts.  Because the Tracker device was professionally installed, the thieves were unable to find it, leaving the police to quickly track its location. Without a Tracker installed, it is unlikely this story would have had a happy ending.” By Graham Hill thanks to Fleet News

Highways England could be charged with manslaughter following the death of a 62-year-old woman on a stretch of smart motorway.

A coroner investigating the death has said she may refer the case to the Crown Prosecution Service to consider if the charges are appropriate.

Nargis Begum, from Sheffield, was killed on the M1 in South Yorkshire in September 2018 when another vehicle collided with her husband’s Nissan Qashqai, which had broken down.

Begum had exited the Nissan, which was stranded in a live lane, and was waiting for help when the incident happened.

The smart motorway section had no hard shoulder.

More than 16 minutes elapsed between the Nissan breaking down and the collision, plus a further six minutes before warning signs telling other drivers not to use the lane in which the Nissan was located were activated

At a pre-inquest review Mundy said: “I want to know why, essentially, it’s as simple as that.”

The case, at Doncaster Coroner’s Court, was adjourned until February 11 to allow Government lawyers time to prepare a response

The CPS has decided against prosecuting the driver who hit the Nissan.

Mundy added that she was also considering whether to refer this decision back to the CPS based on the evidence she had seen.

Almost 40 people have been killed on smart motorways in the last five years.

In March, the Government announced a series of measures to improve the safety of smart motorways, following a review commissioned by Transport Secretary Grant Shapps.

Analysis commissioned by the Transport Secretary reportedly found that “in most ways”, smart motorways are as safe as, or safer than, conventional ones.

There was also an admission that some risks are higher than on conventional motorways, for example the risk of a collision between a moving and stationary vehicle. By Graham Hill thanks to Fleet News

SUV Sales Across Europe Drop For First Time In 6 Years

The growth in demand for SUVs across Europe has slowed for the first time in six years as smaller, electrified models start to claw back sales.

Between January 2016 and January 2020, the market share of SUVs grew significantly – from 25% to 40%.

For the majority of the year, the market share of SUVs remained stable – between 40% to 41%. However, their registrations fell by 13% in November, and 21% YTD when compared to 2019.

Felipe Munoz, global analyst at JATO Dynamics, said: “The market has benefitted hugely from a wider SUV offering provided this year. But with the impact of Covid-19 still in full force, demand is no longer growing in parallel to new product launches, nor at such a fast pace.”

Conversely, B and C cars experienced declines below the overall average, in fact, their market share increased in November due to new arrivals and a more competitive electrified offering.

Overall, Europe registered 1,045,129 new cars – 13% less than for the same period in 2019. November 2020 has recorded the lowest volume since 2014, when just 989,500 units were registered.

Year-to-date figures continue to point to a downward trend, with YTD volume dropping by 26%. European consumers registered 10.71 million units between January and November – the lowest YTD figures so far this century.

Munoz added: “The global pandemic and its impact on mobility has been extremely painful for the automotive industry, indeed more painful than any other economic crisis that has hit Europe over the last two decades.”

The overall ranking by models in November confirms that the Volkswagen Golf (pictured) kept its position as the most popular car in Europe. The hatchback registered 24,800 units in November – just short of 255,000 units since January.

Only two SUVs made it into the top 10 – the Peugeot 2008, followed by the Renault Captur. Further down the ranking, Ford Puma, Volvo XC40, Audi A3, Renault Zoe, Volkswagen ID3, Kia Niro, Mercedes GLA, Skoda Kamiq, Jeep Compass, Mercedes GLB, Nissan Juke, Audi Q3 Sportback, Kia Xceed, Suzuki Ignis, and BMW 2-Series, all posted healthy results.

By Graham Hill thanks to Fleet News

Police already have the powers to not only force drivers to replace their number plates if they don’t conform to strict regulations but if you have to be warned twice they can get the DVLA to issue a new random number.

This will affect those who have a plate that they have modified in order to make a word without adhering to the spacing rules. The plate will be rescinded by the DVLA and a new number allocated.

Between 2015 and May 2020 only 109 plates were rescinded putting pressure on police forces to exercise their powers as these illegal number plates are being missed by number plate recognition technology as drivers avoid paying tax and insurance or commit other crimes using these undetected cars.

In addition to the above number plate offenders who use fake designs to break common motoring laws such as speeding could soon face tougher penalties as a new bill is brought to the Commons.

Number plate offenders could soon be issued penalty points in a bid to crack down on an existing loophole which drivers get away with just a simple fine. Non-compliant plates are also being challenged as part of the new legislation which could affect thousands of road users.

These non-compliant designs are likely to include plates which are covered by dirt or mud which could see many caught unawares.

The Vehicle Registration Offences Penalty Points Bill passed its first step in the Commons at the end of November and is set for a second reading.

Speaking in the Commons, Conservative MP Andrew Griffith said the new changes would close a loophole in the law.

He warned that current rules allow anti-social road users to “defy” speeding rules and number plate cameras.

Mr Griffith said: “Despite an increase in police numbers the police simply can’t be everywhere all of the time.

“Cameras play a vital role in extending their eyes and this is where today’s bill will help. It does this by closing a loophole in the law as it stands today.

“Currently whilst speeding offences are endorsable, that is they result in points on the offenders driving licence.

“The offence of displaying a non-compliant or even displaying no number plate at all carries only a fine.

“This enables anti-social drivers on our roads, especially in rural areas to defy both speed and number plate recognition cameras with relative impunity.”

Those caught breaking the rules and using illegal plates will likely be issued a £100 non-endorsable Fixed Penalty Notice.

In extreme cases, costs can rise to £1,000 and plates could be revoked by the DVLA but this is less likely.

Mr Griffith added that paying the simple fine was often cheaper than booking onto a trackday where road users could speed legally.

He feels that the penalty did not act as a large enough deterrent for road offenders with the new bill set to benefit local residents in many rural locations.

He said: “This is particularly true for owners of high-performance bikes costing tens of thousands of pounds.

“A £100 fine for infringing the law on public roads is far less than the cost of admission to a private and regulated track day.

“More points means substantially higher insurance premiums as multiple offences make the loss of a licence a real consideration.

“Unlike a fine, penalty points are a real sanction and are more likely to change behaviour.”

Experts at the AA said more police was needed to catch those using illegal number plates on UK roads.

However, they raised fears that innocent road users could be penalised for simply uncovering the crime despite not breaking any laws themselves.

Jack Cousens, head of roads policy at the AA said: “There are multiple areas that need to be addressed with this Bill.

“Most importantly, we need more cops in cars to catch these drivers with illegal plates in the first place. Often the cars are involved in other crimes.

“Registration plates can be stolen from the cars of innocent drivers or bought online without any ownership checks.

“Likewise, plates can be made with illegal fonts and sizes. More must be done here to stop the ease with which plates can be cloned and printed.

“All too often, it is those innocent drivers who uncover the crime and then take the rap for other offences they haven’t committed – when they start receiving fines for those offences.” By Graham Hill thanks to The Express

The following is just one of a series of emails being sent to drivers by scammers in order to defraud them.

The Driver and Vehicle Licensing Agency (DVLA) has seen a six-fold increase in scam reports. Between July and September 2020, the DVLA received 603 per cent more reports of fraudulent emails, texts and phone calls than it did in the same period last year.

There were 3,807 reports of email scams alone – up 531 per cent from the 603 reported in the three months to September 2019. Reports of fraudulent texts, though, decreased from a 653 between July and September 2019 to 510 in the same period this year.

These fraudulent messages can ask drivers to verify their driving licence details, offer vehicle tax refunds, or highlight a failed vehicle tax payment and ask for bank details.

The DVLA has now released images of some of the most commonly reported fraudulent emails, allowing drivers to familiarise themselves with them and avoid them.

How to protect yourself against the scammers

Drivers are reminded that the only place they can access official information on the DVLA and its services is the GOV.UK website. The DVLA never asks for bank details over email and never sends text messages about vehicle tax refunds.

The DVLA also tells motorists to never share driving licence images and vehicle documents online, never share bank details or personal data online, avoid websites offering to connect to DVLA’s contact centre and only use GOV.UK when looking for DVLA contact details.

Suspicious emails and texts should be reported to the National Cyber Security Centre. You can also forward a questionable text message to your mobile network provider on 7726. Furthermore, anyone who thinks they may have been a victim of fraud should immediately contact the police via Action Fraud.

Phil Morgan, head of fraud policy investigation at the DVLA, said: “These new figures demonstrate that scammers are becoming more persistent in their efforts to target motorists.

“These more recent scams may at first seem legitimate, however they are designed to trick motorists into providing their personal details. We never ask for bank or credit card details via text message or email, so if you receive something like this, it’s a scam.”  By Graham Hill thanks to AutoExpress

Britishvolt’s new UK battery gigaplant will start production of electric vehicle (EV) batteries from 2023 and will scale to 300,000 units a year.

Global construction specialist ISG has been appointed to lead the build of the £2.6 billion project located at Blyth, Northumberland.

Construction will start in the second half of this year (2021) and once the plant is up and running it will produce lithium-ion batteries for the automotive and renewable energy industries at the end of 2023.

Construction of further phases will continue until the end of 2027.

The Blyth gigaplant is located 20 miles north of Nissan’s Sunderland factory, which makes the Leaf EV.

Orral Nadjari, Britishvolt chief executive, said: “We’re delighted to have engaged ISG as the construction partner for our Blyth gigaplant.

“Its long expertise of delivering global projects will be crucial to meeting our exacting standards and tight timeframe.”

ISG built Jaguar Land Rover’s production facility in Slovakia and it is also currently working on two flagship schemes in London: University College’s £280 million neuroscience hub and the Oak Cancer Centre at the Royal Marsden Hospital.

Paul Cossell, ISG chief executive, said: “This landmark project to build the UK’s first gigaplant is one of the most visible signs that we are confidently stepping up to meet the challenge of new zero emissions by 2050 and closely aligned with the government’s key commitment to cease petrol and diesel car manufacturing by 2030.

“The construction phase alone will directly support thousands of jobs in the North East and create a wealth of training and upskilling opportunities for local communities.”

The gigaplant is being designed by Italian design company Pininfarina.

It will be built on a 95-hectare site, formerly the site of the Blyth Power Station.

The plant will exclusively use renewable energy, including the potential to use hydro-electric power generated in Norway and transmitted 447 miles under the North Sea via the world’s longest inter-connector from the North Sea Link project.  By Graham Hill thanks to Fleet News

In almost half (47%) of thefts from vehicles in England and Wales, new figures from the Office for National Statistics (ONS) suggest that the vehicles were left unlocked. How stupid is that?

Analysis from insurer Aviva also shows that more than one in five drivers (23%) don’t always lock their vehicles and, in cases where a vehicle was taken, 14% were left unlocked.

Broken windows (19%) and forced doors (13%) were the next most common points of access after doors were left unlocked.

Aviva is warning drivers to take extra care when leaving their vehicles during the darker winter months.

The data shows that four out of five vehicle-related thefts in England and Wales happen during the hours of darkness.

In tandem with these figures, Aviva data reveals motor theft claims in 2019 were higher during October to December when daylight hours were shorter.

Compared to the monthly average for 2019, vehicle-related theft claims were 10% higher during these months, and 29% higher than in June 2019, when nights are shortest, it said.

Sarah Applegate, risk and governance lead at Aviva UKGI, says there are “simple steps” people can take to reduce their risk.

“Nearly half of vehicle-related thefts occur when people haven’t locked their vehicles, and an Aviva study finds almost a quarter of motorists don’t always do so,” she said.

“The same research suggests even when people have items which could protect their vehicles, they don’t always use them.”

Only around a third (34%) of drivers with garages store their vehicles in them all the time – and almost the same (33%) never put their vehicles in their garage.

Applegate continued: “Simply locking vehicles and not leaving items on show inside reduces the risk, while items like steering locks, parking posts and garages put physical barriers in the way of a possible theft.

“Taking a few extra minutes to lock up and secure a vehicle can make a big difference in the eyes of a thief.”

More than a third of businesses have had a van stolen within the last 12 months, a recent study by Logistics UK revealed.

The company’s Van Security Report, collated data from police forces across the UK and sought real-life examples and insights from van users through a Van Security survey.

Aviva has the following advice to vehicle owners to reduce the risk of vehicle-related thefts:

• Always lock the door. No matter where you park, even if you need to leave your vehicle unattended for just a minute. Make sure to close the windows and sunroof if you have one.
• Keep your vehicle keys or fobs in a secure place and ensure they’re out of sight and away from external doors and windows where they’re more likely to get stolen by thieves. It’s also a good idea to keep digital key fobs inside a security pouch to prevent them being scanned, thus enabling thieves to open and steal your vehicle.
• Don’t leave anything in your vehicle. Anything worth stealing makes your vehicle more attractive to thieves. Keep your car as ‘clean’ as possible and try not to leave anything inside, especially valuables. If you must store something in your vehicle for a short length of time, make sure it’s out of sight.
• Consider additional security. Any extra security features will further reduce the risk of theft from the vehicle or/and of the vehicle itself. Consider installing steering wheel locks, a tracking system or a car alarm if your car doesn’t have a factory-fitted model, especially if you park on the street.
• Park on a driveway or in a garage if possible. This will reduce the risk of both vehicle thefts and break-ins. You may also consider installing a retractable parking post on your driveway, to block a potential ‘escape route’. If you can’t park on a drive, try to park in a busy, well-lit area. 

By Graham Hill thanks to Fleet News

The Government is being urged to work with the fleet sector to ensure any changes to motoring taxation are carried out in a timely, effective and proportionate way.

Reports suggested that the Government was considering reviving road pricing plans to counter lost tax revenues from the increasing adoption of electric vehicles (EVs).

The fleet sector has already shown it is receptive to road pricing as a replacement to other road and fuel duties. Fleet News has been calling for the Government to launch a feasibility study since its Fleet Industry Manifesto report in 2015.

The National Infrastructure Strategy, launched to coincide with the Spending Review, emphasised the need for motoring tax revenues to ‘keep pace’ with the uptake of EVs. It did not, however, mention road pricing as a potential alternative to the current regime.

Gerry Keaney, chief executive of the British Vehicle Rental and Leasing Association (BVRLA) says any changes need to be fair to the fleet industry.

He recognises that the Government’s future motoring tax strategy must strike a “fine balance” in maintaining vital revenues and encouraging people into newer and cleaner vehicles.

But he stressed: “The Government must avoid placing a crushing tax burden on businesses and individuals that are unable to upgrade their cars, vans or trucks and are already struggling to cope with the economic implications of Covid-19 pandemic and EU exit.” 

The Government has already spent £280 billion to help support the economy through the pandemic and will spend a further £55bn next year to support the recovery.

“We will very soon need a system that can levy tax on both conventionally fuelled and battery electric vehicles fairly,” Nicholas Lyes, RAC

In total, taxes on UK motoring, including vehicle excise duty (VED), fuel duties and VAT, raise around £40bn per year or 7% of total revenue to the Exchequer. Of this, benefit-in-kind (BIK) tax payments, covering the provision of company cars, raise close to £1.8bn.

Darren Handley, head of infrastructure grants at the Office for Low Emission Vehicles (OLEV), told attendees at Virtual Fleet and Mobility Live that, while the question of future motoring taxation is one for the Treasury, it should not necessarily follow that lost fossil fuel revenues will be recouped from EV drivers.

He said: “If you look at a parallel with something like health and smoking, any reduction in tax (take) from (a reducing number of) smokers isn’t regained by taxing somebody who is healthy.”

Covid-19 impact on tax revenues

In Budget 2020, the Treasury outlined expected tax receipts from fuel duty each year up to 2024/25. It expected to collect £27.5bn this tax year, a £200m decline on £27.7bn in 2019/20. But, then it was predicted to increase to £28.1bn the following year (2021/22), before reaching £30.5bn in 2022/23, £31.2bn in 2023/24 and £31.7bn in 2024/25.

VED receipts are expected to fall by £100 million to £7bn in 2021/22, before increasing by £200m each year for the next three years, reaching £7.6bn in 2024/25.

Revenues, however, have already been impacted by Covid-19, with lockdown restrictions reducing fuel duty by £2.4bn in April and May compared with the same time last year.

Nicholas Lyes, RAC head of roads policy, said: “While not paying car tax is clearly an incentive to go fully electric at the moment, we will very soon need a system that can levy tax on both conventionally fuelled and battery electric vehicles fairly.

“If this isn’t addressed, we risk finding ourselves in a situation where petrol and diesel drivers continue to pay all the tax for using the roads which is unsustainable.”

Four-in-10 drivers believe that some form of ‘pay-per mile’ system would be fairer than the current system of fuel duty, says the RAC, while half (49%) agree that the more someone drives, the more they should pay in tax.

Insurance and Mobility Solutions (IMS), which is part of Trak Global Group, has successfully piloted road pricing projects in several US states.

Dr Ben Miners, chief innovation officer for IMS, explained: “Road user charging (RUC) and electronic toll collection (ETC) are both important solutions to fairly generate revenue from road users.”

ETC focuses on specific concessions or fixed points with a roadside/infrastructure approach, whereas RUC focuses on the broader transportation network with an infrastructure-free, wireless infrastructure, process.

Miners said: “The additional flexibility of RUC enables new virtual tolls to be introduced and transform any road segment or fixed asset into a ‘tolled’ road, which eliminates lengthy construction times and shortens time-to-market.”  By Graham Hill thanks to Fleet News