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Contract Hire or leasing as it’s generally known relies on two things for the really cheap rates. Firstly the fleet discounts that can be passed on to consumers through the rates and secondly a buoyant used vehicle market, The higher the resale value the lower the rate. So drops in the used car market are not good news.

An imbalance between supply and demand in the used electric vehicle (EV) market could push prices down by up to a further 10%.

That’s according to Dean Bowkett of Bowkett Consulting, who says that consumer interest in EVs remains minimal against a backdrop of rising supply.

Used EVs have now fallen by 21.2% over the first four months of 2023 (from January 1 to May 1), according to analysis by Indicata.

In fact, according to recent analysis by the AA, some used EVs, with less than 10,000 miles on the clock, can now be bought for half the price of a new electric car.

Bowkett told the latest Vehicle Remarketing Association (VRA) member meeting: “We could soon be in a situation where for mainstream cars that are available with both petrol and electric drivetrains, the latter is marginally cheaper.”

Rupert Pontin, vice chair at the VRA, says that the future of EVs in the used car market is very much a live debate within its organisation.

“Indeed, there are those who believe that supply and demand are now balanced and can point to rising values for some models that appear to be underpriced,” he said.

“However, others believe that further falls in value will happen, and given the swingeing reductions seen over the last year, there is an extreme degree of caution in the market.”

He added: “Fighting the forces of supply and demand is tremendously difficult, and vehicle values are very much a dynamic outcome of those factors.”

The meeting also heard from Alastair Cassels of MHA on the three key issues facing motor manufacturers during the immediate future – the forthcoming zero emissions vehicle (ZEV) mandate, distribution costs and competition from new entrants.

He says that the ZEV mandate could have huge implications for manufacturers selling cars in the UK, including some of the biggest mainstream names.

“It is possible that for those who don’t meet the mandate’s targets, fines of £15,000 per vehicle could be imposed, which is a dramatic figure,” explained Cassels.

“Carmakers who don’t have sufficient EV representation in their ranges will be in very difficult positions and may have to do everything from buy credits from other manufacturers to strangling supply of petrol and diesel vehicles to balance their sales.”

The VRA meeting was held at the premises of VRA members City Auction Group in Peterborough, and also featured Rob Severs of iVendi looking at the impact of the new Consumer Duty regulations on motor finance, while there was a panel discussion looking at data issues currently affecting the remarketing sector featuring Jonathan Hartley, sales and marketing director, Jepson; Jeremy Raggett, account director, Autotek21 and Mark Rose, managing director, Tracker.

Pontin concluded: “Our members are living through a time when our sector is perhaps seeing more change than at any point during their working lives and the VRA is playing a crucial role in helping businesses keep abreast of the latest developments, something that can be seen in our growing membership base.” By Graham Hill thanks to Fleet News

A potentially massive data leak is being looked into by the authorities after it was alleged Tesla failed to adequately protect data from customers, employees and business partners.

The data protection watchdog for the Netherlands said on Friday (May 26) it was aware of possible Tesla data protection breaches, but it was too early for further comment.

Germany newspaper Handelsblatt reported on Thursday (May 25) that Tesla had allegedly failed to protect data, citing 100 gigabytes of confidential data leaked by a whistleblower.

“We are aware of the Handelsblatt story and we are looking into it,” a spokesperson for the AP data watchdog in the Netherlands, where Tesla’s European headquarters is located, told Reuters.

They declined all comment on whether the agency might launch or have launched an investigation, citing policy. The Dutch agency was informed by its counterpart in the German state of Brandenberg.

Handelsblatt said Tesla notified the Dutch authorities about the breach, but the AP spokesperson said they were not aware if the company had made any representations to the agency.

Tesla was not immediately available for comment on Friday on the Handelsblatt report, which said customer data could be found “in abundance” in a data set labelled “Tesla Files”.

The data protection office in Brandenburg, which is home to Tesla’s European gigafactory, described the data leak as “massive”.

“I can’t remember such a scale,” Brandenburg data protection officer Dagmar Hartge said, adding that the case had been handed to the Dutch authorities who would be responsible if the allegations led to an enforcement action.

The Dutch authorities has several weeks to decide whether to deal with the case as part of a European procedure, she added.

The files include tables containing more than 100,000 names of former and current employees, including the social security number of Tesla CEO Musk, along with private email addresses, phone numbers, salaries of employees, bank details of customers and secret details from production, Handelsblatt reported.

Adrianus Warmenhoven, a cybersecurity expert at NordVPN, said: “Autonomous intelligence technology is the most advanced type of AI, as it removes the need for human intervention.

“While we may still be a long way off a driver being able to take their eyes off the road, we are still putting faith in something which we don’t yet fully understand.

“This new technology is being designed with the driver in mind, but it is crucial that cybersecurity is not forgotten, as there may be dangers hiding beyond the control panel.

“It would take hackers a lot of work to bypass the built-in security features of these cars, but they could still find a way.

“Ransomware, wireless carjacking, key fob cloning and cyber-attacks on connected devices in the hardware and software of the car are all potential security concerns that could arise.

“This is an exciting time for car makers and the potential positives of self-driving cars outweigh the negatives. However, without a strong cybersecurity focus to future-proof these desirable vehicles, there is a risk criminals could already be preparing to manipulate this technology — so they can make a quick getaway without a hand on the steering wheel.”  By Graham Hill thanks to Fleet News

The cost of charging an electric vehicle (EV) at home has levelled out, but public charging continues to increase, according to new research published by Mina.

Analysis of data, based on more than 50,000 real-life charging events, reveals that the price of home-charging stayed level last month (April), at 32p per kWh, on average.

The cost of charging an EV on the public network, meanwhile, rose to 76p/kWh.

Mina CEO Ashley Tate said: “Our data is unique in that it records an actual electric vehicle user’s cost and consumption, at home and in public, and so every month we can build a far more accurate picture of what’s really going on than just extrapolating from energy and charge point providers’ headline figures as others may have to.”

He explained that its analysis showed that the “shocking leaps” in energy prices of last year are not happening anymore.

However, he said: “We’re still seeing public charging costs have been rising bit-by-bit every month, even into spring.

“At home it’s a different story. Costs have levelled out and the question now, especially with the announcement of the new price cap from July, is whether there will be a fall in home charging tariffs as energy prices drop this summer, or whether it may take a while for the wholesale prices to feed through to EV users.”

Ofgem announced recently that the standard variable tariff for domestic electricity rates will be lowered to 30p/kWh from July 1.

The reduction is down from the current 34p/kWh which has been in place since October 1, 2022.

Mina’s monthly report comes after analysis by the AA showed that the price of slow charging an electric vehicle (EV) on the public network increased by 5p/kWh in April, compared to March, while the fast-charging rate rose by 1p/kWh.

The figures, from the April 2023 AA EV Recharge Report, show an increase in slow charging costs by one supplier of EV charging at supermarkets pushed up the average price by 5p/kWh. However, it remains half the average cost of ultra-rapid charging when priced at a flat rate (as opposed to peak/off-peak pricing schemes).  By Graham Hill thanks to Fleet News

Tesla price cuts, the arrival of new manufacturers from China and an increase in production are resulting in fleets starting to see discounts on new electric vehicle (EV) orders.

That’s according to Mike Potter, CEO of Drive Electric, who told delegates at the Association of Fleet Professionals (AFP)’s 2023 Conference, it was a sign that EVs are becoming a “normal part of the fleet market” as well as the sector seeing a return to something a little closer to “traditional market conditions”.

“We’re not talking about massive discounts but the time when all EVs were sold at list price appears to have passed, at least for the time being,” he said.

“The moves made by Tesla appeared to us to be designed to try to prompt some kind of price realignment in the EV market and, to some extent, that has worked – although it has arguably had negative effects in terms of setting future residual values.

“Certainly, others have had to look at their own sales to fleets and whether incentives needed to be introduced.”

He added: “New entrants from China have also been a factor.

“MG is now really established as a standard fleet choice at the entry level EV end of the market and the arrival of others such as BYD could have a similar impact in the mid-market.

“Their product appears to be strong enough to challenge existing players and if availability is good, they could mount a serious challenge.”

EV lead times ‘shortening’

Some fleet managers in the audience reported that lead times on EVs were starting to fall, sometimes substantially – although this could create its own problems.

Peter Milchard, AFP board member, said: “It was interesting during our panel discussion to hear that some fleets, who are sensibly placing EV orders 12-18 months ahead of when they actually need the vehicles based on recent supply experiences, are now seeing some of those orders arriving in 6-9 months.

“On one hand, it’s good news, because it suggests that lead times are returning to sensible levels in some instances, but it does mean that their orders are arriving a year earlier than they really need them, which can obviously be an issue in itself.”

Solus versus panel funding

The conference also debated the advantages of solus versus panel funding for fleets.

Steve Winter, of Appleridge Fleet Consultancy, said: “You can easily find differences of between £30-£100 per month on the same vehicle depending on the leasing company.

“These are not normally a sign of anything other than the appetite of that business for leasing you a certain kind of model of vehicle but does show the importance of benchmarking when it comes to vehicle acquisition.

“Fleets should consider having a panel of lenders is the right solution.”

The AFP conference took place at The British Motor Museum, Gaydon, and focus

ed on practical advice for fleets facing a range of current issues.

Sessions took the form of panel discussions with leading fleet managers chaired by AFP board members. These covered topics including handling supply matters, dealing with the rising costs of leasing and rental, managing an aged fleet, reimbursing drivers of electric vehicles, and optimising van fleets while gearing up for electrification.

AFP chair Paul Hollick said: “The ongoing impact of everything from the pandemic to the current economic crisis means fleet managers are facing a multitude of difficult issues for which there are often no easy answers such as rising costs across the board, ongoing supply difficulties, electrification of van operations and the ageing of their existing fleets.

“We wanted delegates to leave with ideas they can put straight into action – and the feedback that we are receiving suggests that the conference very much achieved that aim.”  By Graham Hill thanks to Fleet News

A majority of fleet decision-makers would not be happy for their drivers to use a hands-off driver assistance system, such as Ford’s BlueCruise, according to a Fleet News poll.

Ford introduced the first hands-off driver assistance system that can be used on UK motorways in April.

BlueCruise, which enables hands-free assisted driving at speeds of up to 80mph, is available on the Mustang Mach-E and was approved for use by the Department for Transport (DfT).

However, more than half (55%) of respondents to a Fleet News poll said there were wary of allowing drivers to use the new technology.

BlueCruise is classified as a Level 2 autonomous system and can be activated on 2,300 miles of pre-mapped motorways in England, Scotland and Wales, designated as Blue Zones.

The system monitors road markings, speed signs and evolving traffic conditions to control steering, acceleration, braking and lane positioning, as well as to maintain safe and consistent distances to vehicles ahead – right down to a complete halt in traffic jams.

Just over a third (35%) of fleets supported the use of hands-off driver assistance systems, while 10% said they were unsure.

In a recent Fleet News at 10,  Paul Hollick, chair of the Association of Fleet Professionals (AFP), said: “Any form of technology which means a driver, through ignorance more than anything, thinks that they don’t need to do something is scary for us as fleet operators.

“I can just see drivers that have got that system watching a Netflix movie or trying to read a book while they’re driving home, without being sensible and proactive on the roads.

“From a fleet management perspective, I think it’s just scary. Drivers still need to drive, and drivers still need to be the centre of everything.”

Appearing alongside Hollick on April’s Fleet News at 10 webinar, Duncan Webb, fleet director at the AA, said he was “really nervous” about the technology.

“Just knowing you don’t have to be as in control of the car worries me that the role of the driver is becoming even more dumbed down… and might end up presenting a greater risk,” he added.

When using the BlueCruise system, drivers must remain attentive at all times and are monitored by an infrared camera continually.

If the system detects driver inattention, warning messages are first displayed in the instrument cluster, followed by audible alerts, brake activations, and finally slowing of the vehicle while maintaining steering control.

Similar actions are performed if the driver fails to place their hands back on the steering wheel when prompted when leaving a Blue Zone.

Eye-tracking technology could help ‘improve road safety’

The use of driver monitoring systems (DMS) inside the vehicle that use eye-tracking cameras to check driver attentiveness, are rapidly becoming a key tool for governments and carmakers seeking to prevent road accidents.

However, the results of a recent study commissioned by Seeing Machines, show that drivers still need convincing of the benefits of the technology, which monitors for fatigue and distraction.

Driver monitoring systems, it says, provide the critical link between assisted driving features and driver safety, with the technology only being noticed if required to intervene.

In a poll, conducted by Seeing Machines, more than two-thirds (70%) of those surveyed said that they believed technologies used to monitor and improve the performance of drivers had the potential to help improve road safety and reduce road accidents.

The results also revealed some interesting regional variations, with drivers in London being on average 32% more likely to believe that DMS would improve their driving, while those in high-level professional occupations were also 40% more likely than their junior colleagues to think the same.

Drivers in the North-East were the group least likely to believe that DMS could lead to improvements in their driving ability, with only 6% supporting the view that DMS could make them a more attentive driver.

“On the back of Ford’s recent announcement that its ‘hands-off, eyes-on’ assisted driver technology has been approved for use on certain motorways in the UK, the prevalence of driver monitoring systems in the vehicles we drive will only increase in the years ahead,” said Paul McGlone, CEO of Seeing Machines.

“Every year, around 1.35 million people die, and between 20 and 50 million people are injured, due to some form of transport accident caused by human error, negligence, risky behaviour, unpredictable events, or unsafe conditions.

“Getting everyone home safely is what matters and regulators around the world understand that sophisticated cameras to check driver attentiveness can help reduce accidents.”

He concluded: “The survey shows that there is much work still to be done by carmakers, suppliers and policy makers in educating the public as to the benefits of advanced driver monitoring systems and the regulatory changes which will make it an unavoidable legal requirement in the decade ahead.

“Even so, the results indicate that most UK drivers are receptive to these changes and are willing to try out a technology with clear benefits for driver safety, as DMS technology becomes as commonplace as the seatbelt in the years ahead.”  By Graham Hill thanks to Fleet News

There was a 24.9% year-on-year increase in the number of vehicles stolen across England and Wales, according to new data published by the Office of National Statistics (ONS).

Analysis shows that there were 130,389 vehicles stolen last year, compared to 104,435 during the previous year (2021).

Furthermore, AA Insurance Services says that theft from vehicles rose by 9.9%, with 212,900 people having items stolen from their vehicle compared to 193,647 the year before.

Devon and Cornwall Police were unable to supply figures to the ONS, so the true figure is likely to be even higher.

Gus Park, managing director for AA Insurance Services, says that the rise in vehicle thefts is “worrying” and highlights that security is “vitally important”.

He added: “Unfortunately, there is no one thing that can guarantee keeping your car safe from theft, but just making it a bit harder for the thieves can make it less likely that they’ll go for your car.”

When it comes to taking cars, thieves are keeping pace with manufacturers by using a variety of hi-tech methods to steal them. Relay theft, key cloning and signal blocking continue to be the main methods of illegally obtaining vehicles.

When it comes to taking things from cars, faster and more traditional methods are adopted such as smashing windows or forcing windows and doors open are adopted to gain phones, wallets, and other valuable possessions.

AA Insurance Services is reminding company car and van drivers to not store valuables in their vehicles if possible, or at the very least advise drivers to keep items hidden away.

Visible deterrents such as using a steering wheel lock plays a crucial role in keeping thieves at bay, because these devices cannot be overcome by the technology now being used by gangs to steal cars, it says.

Although nothing is fool proof, this deterrent is likely to make the thief move on to the next unprotected car.

Separate data from the Metropolitan Police, which was published recently, revealed that tool theft from a vehicle had increased by 25% – accounting for a third of all tool thefts recorded in the capital in 2021 and 2022.

Tradespeople are 10 times more likely to experience tool theft from a vehicle than they are from a building site or their place of work – with only 14% of cases leading to the suspect being identified. By Graham Hill thanks to Fleet News

Old electric vehicle (EVs) batteries will be used to store solar-powered energy to fuel a fleet of new EVs.

North Tyneside Council is revitalising its Killingworth Site depot, in a multi-million-pound project supported by the European Regional Development Fund (ERDF).

A core aim of this initiative is to futureproof the site for sustainability and energy efficiency.

The depot – which is home to around 1,000 council employees – now includes a solar PV array and car ports delivering 700 kilowatts at peak generating around 600,000kW/h of electricity each year.

There are also more than 40 EV chargers being installed in the coming months, which will increase as the authority transitions a significant part of its fleet to electric over the next few years.

However, realising it would be giving 15% of the solar energy it generated back to the grid, as it had no way of storing the excess energy created during daylight hours, the council turned to Connected Energy in an effort to use this excess electricity to charge its electric vans at night.

Connected Energy has developed a battery energy storage system (BESS), which is already used to support solar storage and EV charging across the UK and Europe.

Its E-Stor system uses batteries from end-of-life electric vans, giving them a second life.

Ian Lillie, strategic facilities manager for North Tyneside Council, with responsibility for the depot, said: “Since installing and commissioning the PV array in February 2023 we have already generated over 100,000kW of green energy. However, we’ve had to give back over 20,000kW to the grid because we can’t store it.

“By using Connected Energy’s battery energy storage system, we can capture that energy and use it to charge our electric vans and indeed the buildings on site overnight. And in the winter, we can use E-Stor to store energy from the grid on lower tariffs at night, to use during the day.

“The combination of solar and BESS should significantly reduce our electricity bills while also cutting carbon emissions from our energy consumption.”

Lillie continued: “E-Stor repurposes batteries from end-of-life electric vans, so the ability to power the vans of the future using batteries from the vans of the past was a compelling argument for us.

“On top of that, the scalability of the E-Stor solution means we can ramp up our use of BESS on site as the council expands its own EV fleet.”

Typically, the batteries still have up to 80% of their original energy storage capacity at the end of the vehicle’s life, making them ideal for this application.

Furthermore, Connected Energy’s intelligent management system enables E-Stor to integrate with solar PV, the grid, and other smart technology like building management systems.

Councillor Sandra Graham, council cabinet member for the environment, said: “Battery storage is an integral part of a decarbonised energy ecosystem, and it is a testament to the site’s inventive approach that this is one of the first systems of its kind to be installed in the North-East.

“The redevelopment of the site has given us an opportunity to take positive action in line with our carbon reduction commitment, and the use of battery storage will allow us to stockpile the energy that our solar plant generates, so that nothing goes to waste.”

Connected Energy has been developing and delivering battery energy storage projects for more than 10 years. The company’s HQ is based on the Newcastle Helix site.

Matthew Lumsden, CEO and founder of Connected Energy said: “The concept for our systems came from our work in the North-East on a number of electric vehicle trials and driven by the mission to find a second life use for EV batteries.

“We now have over 30 systems operating across the UK and Europe – however this will be our first installation in the North-East. We’re proud to see a system in action so close to our HQ and look forward to seeing the benefits it will bring to the location.”  By Graham hill thanks to Fleet News

The busiest late May bank holiday on the country’s roads since 2019 is being predicted, with an estimated 19.2 million motorists planning a leisure trip over the weekend.

Analysis by the RAC and Inrix suggests that Saturday, Sunday and Monday (May 27, 28 and 29) will be the busiest for leisure journeys by car, with around 3.3m made each day.

However, when it comes to traffic congestion, Friday (May 26) may turn out to be busiest when a projected 3m trips are made. A further 6.3m trips are expected to be taken at some point over the four days.

Transport experts at Inrix expect the M25 to be a hotspot for traffic jams over the weekend, with journeys on some stretches – including clockwise from J23 for Hatfield to J28 for Chelmsford and anticlockwise towards the Dartford crossing – taking up to three times longer than normal.

Delays are also expected on the M5 in Somerset and M6 in Cheshire and Greater Manchester.

RAC Breakdown spokesman Rod Dennis said: “With the travel restrictions imposed during Covid now thankfully a distant memory, it’s clear drivers’ desire to getaway has been reignited with our figures for this coming weekend suggesting leisure traffic volumes will be close to what we last saw in 2019.

“With the Met Office currently predicting largely settled weather with above average temperatures, we’re expecting this to be a hectic period on major roads as people aim to make the most of the last long weekend before August.”

By Graham Hill thanks to Fleet News

While many organisations are electrifying their fleets with the main aim of reducing carbon emissions, cost still matters.

Traditionally, the typically higher purchase or lease rates of a battery electric vehicle (BEV) compared with an internal combustion engine (ICE) model have been mitigated by factors such as lower fuel and/or charging costs.

However, this advantage has been eroded significantly through the soaring cost of electricity.

Another traditional benefit for BEVs has been lower service, maintenance and repair (SMR) outlay.

It has been widely supposed they will deliver uniform SMR benefits over petrol and diesel vehicles because they have fewer mechanical parts, minimising the likelihood of breakdown and requiring less routine maintenance.

But with growing numbers of BEVs on the road giving more data in this area, does this expectation still hold true?

Yes, says Vincent St Claire, managing director of Fleet Assist, which has a network of 5,200 franchised and independent garages, but with a caveat.

“All the indicators are strong that SMR for BEVs will continue to be less than that for ICE vehicles,” he adds.

“However, while we are now in a period after the pandemic where BEVs are in proper real world use and we are seeing vehicles doing higher mileage than they’ve ever done, it is still a small sample and until we get a bigger data set in terms of numbers of BEVs, we can’t say with a high degree of conviction the issue is settled.”

In the first 10 months of last year, Fleet Assist saw the number of BEV SMR jobs on its network increase by 73% compared with the same period in 2021, but they still accounted for just 9% of its overall vehicle parc.

The company’s average cost of BEV SMR in 2022 was £171, 40% lower than all other vehicle types including ICE and hybrid (£243) compared with the previous year.

But the average age of ICE vehicles analysed last year was three-and-a-half years older than the equivalent BEV, which was likely due to the ICE vehicles being retained by fleets due to extended contracts and vehicle availability.

This combination would result in larger jobs and major components being fitted to ICE vehicles so has to be taken into consideration, says St Claire.

The most used components in ICE vehicles were, in order: brake pads, brake discs, bulbs, oil filters and pollen filters.

For BEVs these were pollen filters, bulbs, key fob batteries, wipers and brake fluid.

Rivus reports overall SMR costs for fully electric LCVs are 20% lower than for ICE equivalents, while the service costs are 65% lower.

The company has measured the costs by comparing BEVs seen by its service network with ICE vehicles which are from the same model line-up and registered at the same time.

“Given the LCV learnings we’ve had from our garages so far, the high-level figures do look quite positive,” says Sarah Gray, head of electric vehicles and alternative fuel vehicles at Rivus.

“When you put all the costs together in a bucket to have a look at how these sets of vehicles have performed, we’re looking at about 20% less cost overall at the moment for EVs, which is really positive news.

“What I would say, however, is we’re still in really early days. For example, the e-Vivaro has probably only been out for two-and-a-half years whereas the ICE Vivaro has probably been around for 20 years.

“When they come into our garage over a longer period of time we can start predicting what maintenance they might need, whether we need to make any changes in terms of service intervals etc.

“At the moment with BEVs, they may have just been in for one service and that could be a routine check and nothing is required.

“When we get further down the line and we start servicing vehicles in year three or year four, I don’t expect the savings to be as much as they seem now, but we’ll wait and see how they perform.”

Real world data from Epyx, however, shows a mixed picture for EV servicing costs compared with their petrol and diesel counterparts, with results heavily dependent on the vehicle model.

“At the outset, it should be underlined that fairly substantial caveats must be applied to this data,” says Charlie Brooks, strategy director at Epyx.

“In terms of the information available on 1link Service Network, there remain relatively few EVs of relevant ages and mileages.

“For the comparisons we’re quoting here, there are only around 170 vehicles in total. However, it shows, perhaps surprisingly, that the emerging picture is more mixed than might be expected.”

Its figures show the average cost of a service for a widely used battery electric hatchback over three years/25-30,000 miles was £164. Over the same cycle, an ICE hatchback was £220. The average repair cost for a fully-electric hatchback was £70, £10 more than its ICE counterpart.

For a large prestige SUV over two years/20-30,000 miles, the average service cost was also £164 for BEV models, and £279 for an ICE. As with the hatchbacks, the cost of repairs for an electric SUV (£81) is slightly more than an ICE SUV (£70).

Analysis of data from Kee Resources, which is used in the Fleet News company car tax calculator, reflects a mixed picture (see table, above).

Over a replacement cycle of four years/80,000 miles, a petrol Volvo XC40 B3 Plus has an SMR cost of 4.29 pence per mile (ppm): exactly the same as its Recharge Plus fully-electric sibling.

It is a similar story for the BMW X3: the fully electric iX3 M Sport will cost 4.77ppm in SMR, with the petrol xDrive20 M Sport at 4.90ppm.

There are still significant savings to be had with some models, however. A Hyundai Kona Electric Premium will cost 2.61ppm in SMR, 42% less than for the petrol 1.6h-GDi Premium.

“Broadly, while workshop costs for some EVs represent substantial savings over their petrol and diesel equivalents, this cannot be assumed,” says Brooks.

“Also, the number of times that EVs visit garages for maintenance or repair and the amount of time they spend unavailable off-road are consistently similar to ICE vehicles – and those servicing factors very much represent a substantial cost to business.”

Epyx data shows the electric hatchback averaged 5.7 visits to service outlets and spent 3.2 days off-road due to SMR issues.

These figures are very similar to the petrol version of the same model, which had 5.0 service visits and 4.5 days off-road.

The electric SUV delivered 4.1 visits compared with its petrol counterpart’s 4.0, but its 3.4 days off-road was superior to the ICE vehicle’s 4.9.

“What the data doesn’t tell us at this stage is why this is the case. There could be good reasons,” says Brooks.

“For example, EVs remain a relatively new technology when operated on a large scale and what we are seeing could be teething problems that may range from workshops being unfamiliar with these types of vehicles through to parts not being readily available.

“However, the bottom line at this stage is that fleet managers should not automatically believe that, in adopting EVs, they are going to see SMR benefits with every model.

“That situation may well change over time, but these comparisons show that we are not there yet.”

Tyres

Conventional wisdom has been that the tyre costs for a BEV would be greater than for an ICE vehicle because their extra weight and high instant torque would lead to higher wear.

This has been supported by data from Rivus, which has found tyre costs are 15% greater for a fully-electric van than its ICE counterpart, but wider evidence is inconclusive.

“If electric cars were fitted with the same tyres as ordinary vehicles, the rates of wear would be great: but they aren’t,” says a Kwik Fit spokesman.

“Electric car tyres are built to withstand the pressure of the increased battery weight and manufacturer improved not only the rubber compound and sidewall strength, but also the tread and groove design for resilience.

“As result, they are more expensive than regular tyres, but due to their strain-absorbing structure, they will wear down less quickly.”

Michelin says conventional tyres on a BEV would probably wear out around 20% faster than an EV-specific tyre.

Kwik Fit adds: “It seems then, that EV tyres do last longer, but this result comes with a caveat.

“Not only are EV tyres more expensive, but the rate of wear has a lot more to do with the driver than the tyre itself.”

Excessive braking, mileage, wheel alignment and tyre monitoring are the biggest influence on tyre lifespan.

Research released in March by Epyx found tyres for electric company cars are on average both bigger and more expensive than those for petrol or diesel equivalents.

The company found the average replacement tyre fitted to an EV is 18.59 inches and costs £207 while, for ICE cars, the corresponding figures are 17.40 inches and £130.

 Accident repairs

As with servicing and maintenance, the sample size of BEVs which have been involved in collisions is too small over too short a period to draw definitive conclusions.

However, in its analysis, Rivus has found the cost of repairing a fully-electric car after a collision is around 25% more than for an ICE equivalent, while this figure is around 55% for LCVs.

Its figures show the average accident repair cost of an ICE car is £1,155, a BEV £1,327 and a hybrid £1,733. For LCVs, the costs are £1,545 and £2,394 for ICE and electric models respectively.

Vehicle off-road time is also greater for EVs. Rivus analysis shows the average time off the road for a battery electric car is 10.9 days, hybrid 16 and an ICE car 8.9. For LCVs, this is 17.7 and 9.3 for electric and ICE respectively.

“In many circumstances, EV accident repair is no different from ICE vehicles,” says Adrian Watson, head of engineering at Thatcham Research.

“But under the hood lie everyday essentials, such as safe, cost-effective, timely post-accident repair and the surrounding claims process so critical to putting any new vehicle on the road.

“And nowhere is the difference between EV and ICE more clearly underlined than in the insurance claim chain.”

Watson says because EV batteries are expensive, OEMs rigorously protect them within crash structures which means they will rarely be affected by low-speed impacts.

However, challenges arise when the battery is involved, either directly or indirectly as a result of a collision, or indirectly when the high voltage system becomes associated with the repair.

Thatcham Research is to lead an Innovate UK-funded project focused on EV collision repair and salvage processes and their impact on insurance claims and their associated costs.

Other project partners include vehicle salvage, dismantling and recycling specialist Synetiq and LV= General Insurance.

In the first phase, the five-month project will focus on identifying where the claims workflow is different for EVs, revealing potential pain points.

Following this, Thatcham will use the findings to determine where more detailed work may be required in the future.

SMR industry facing EV skills shortage

A further issue facing the SMR industry is ensuring there are enough trained mechanics to work on electric vehicles (EVs) in the future.

At the end of last year, cross-party think-tank Social Market Foundation estimated Britain is facing a critical shortage of qualified technicians, who need specialist training to work on EVs due to the different technologies and potentially lethal high voltages involved.

In its A Vehicle for Change report, the organisation says that, by 2027, there will not be enough qualified mechanics to maintain all of Britain’s EVs, which risks driving up service costs and potentially leaving some drivers unable to have their vehicles maintained properly.

This followed a similar warning from the Institute of the Motoring Industry (IMI), which warned only 11% of technicians in the UK are qualified to work safely on EVs.

According to the IMI, there could be a shortfall of 25,100 qualified technicians by 2027.

“The skilled EV workforce is not keeping up with the sales of BEV, plug-in hybrid and hybrid vehicles,” says Steve Nash, chief executive of the IMI.

“While manufacturers and their franchised dealers are committed to EV training, lack of funding means independents risk being left out in the cold and this risks consumer choice being restricted and EV servicing costs rising.”

The IMI is calling on the Government for £15 million funding to help get more technicians ‘EV ready’.  By Graham Hill thanks to Fleet News

Some of the UK’s largest fleet operators, including BT Group, LeasePlan, Openreach and Royal Mail, are calling on the Government to set ambitious sales targets for zero emission vehicles (ZEVs).

The Government published its Zero Emission Vehicle (ZEV) mandate proposals in March, which would force manufacturers to sell a certain proportion of electric vehicles (EVs) in the lead up to 2030.

In 2024, the target would be 22% for cars and 10% for vans, with the proportion of zero emission vehicles increasing year-on-year before reaching 80% and 70%, respectively, by 2030 and 100% by 2035.

The Climate Group, on behalf of the UK Electric Fleets Coalition, a group of 28 UK businesses with some of the largest fleets in the UK, has responded to the Government’s third and final consultation on the ZEV mandate by calling for ministers to implement ambitious sales targets for ZEVs.

Mandating that manufacturers sell more EVs, with stronger interim targets for sales in 2024 and 2027, will boost supply and help businesses go electric faster, the Climate Group said.

Catherine Colloms, managing director of corporate affairs and brand at Openreach, said: “We’re serious about our responsibilities to the planet and the communities we serve. As part of that we’ve pledged to be a net zero business and switch the bulk of our commercial van fleet to zero emissions by 2030. 

“We have the second largest commercial fleet in the UK and expect to have around 4,000 electric vans in our fleet by the end of March 2024.

“But like others, we continue to face shortages in the vehicle supply chain especially when it comes to range, functionality and choice – for some vehicle types there is simply no option yet.

“Therefore, it’s imperative that Government pushes ahead with the ZEV mandate so that we can lead the world when it comes to decarbonisation.”

Shortage of supply is most acute in the UK’s commercial van sector, with businesses ready to invest but unable to secure the electric vehicles that meet their specifications in the quantity they need. 

Sandra Roling, director of transport at the Climate Group, said: “It’s now up to the UK Government to offer the support businesses and drivers need in the switch to cleaner vehicles.

“The demand is clearly there, and our business members have consistently called for a ZEV mandate to help drive the EV supply – it’s vital to ensure cars and in particular vans are available in the volume and variety that companies need. 

“To do this, we need more ambitious interim sales targets, so we’re urging decision makers to push the boundaries.”

 

She added: “The businesses we work with – like BT Openreach, LeasePlan and Royal Mail – are committed to investing in the technology, and with a simple, UK-wide and ambitious ZEV mandate introduced in 2024, they can help transform the UK’s roads faster. The sooner the mandate comes in, the better.”

The UK’s ZEV mandate, says the Climate Group, should also be simple, consistent across the home nations with limited flexibilities and loopholes. By Graham Hill thanks to Fleet News