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Residents in Paris have voted overwhelmingly in favour of banning rental e-scooters amid growing safety concerns, with 459 injuries and three deaths in the city last year.

Some 90% of residents who voted in the French capital were in favour of a ban and findings in IAM RoadSmart’s safety culture report, which surveys more than 2,000 UK motorists on opinions of key road safety issues over time, discovered that e-scooters could be facing the same fate in Britain, if public opinion is anything to go by.

More than two thirds (68%) of respondents to its poll said they would support a law totally banning e-scooters.

The same proportion (68%) also stated that the growing number of e-scooters on the roads is a threat to their road safety, with three quarters (74%) of those over 70-years-old being the age group feeling most threatened by the device, compared to more than half (59%) of 17–34-year-olds.

Responses varied according to region, with residents of London and the West Midlands among those who feel most under threat by the growing number of e-scooters.

Not all of those who feel under threat by e-scooters are calling for a blanket ban on the machines, but are instead calling for smarter and stronger ways for them to be used more safely, with 86% of those surveyed stating that they are in support of tougher regulation of the devices.

This includes a law restricting e-scooters to cycle lanes only, enforcing age limits on those who are allowed to use them and introducing strict design and construction standards.

It comes after the latest Department for Transport (DfT) statistics revealed that there were 1,434 casualties involving e-scooters in Britain in 2021, of which, 10 people were killed.

This is compared to 484 casualties involving e-scooters in 2020, meaning casualties have almost tripled in just 12 months.

Neil Greig, director of policy and research at IAM RoadSmart, said: “The people of Paris voiced their opinions on e-scooters loud and clear at the voting booths, and our research demonstrates that British road users have similar concerns to our French counterparts.

“We still await the Transport Bill, meaning there is still no regulation of these vehicles, which can go up to 30mph in some cases.

“Given the number of collisions we have seen on our roads and pavements involving e-scooters since they have been introduced, the concerns of the public are more than understandable.

“The Government must act faster to regulate e-scooters before more injuries are sustained and lives are tragically lost.

“In the meantime, we would encourage those who wish to use rental e-scooters to ride with caution, vigilance and due attention, keeping themselves, other motorists and pedestrians safe.”

New safety and technical standards were recommended for e-scooters last month, after the increase in deaths and serious injuries.

They included a 20km/h (12.5mph) factory-set speed limit, a ban on passengers and pavement riding, compulsory helmets and a minimum age of 16.

The recommendations were set out in a new report from the European Transport Safety Council (ETSC) and the UK Parliamentary Advisory Council for Transport Safety (PACTS).  By Graham Hill thanks to Fleet News

Gridserve and Moto have announced that two new electric vehicle (EV) charging hubs on the A1 are now open for business.

The Electric Super Hubs at Moto Washington North and South on the A1(M) each have six 350kW-capable high-power chargers, joining the Gridserve Electric Highway network of 160-plus locations. 

Toddington Harper, CEO of Gridserve, said: “We are thrilled to open our next Electric Super Hubs at both Washington North and Southbound.

“As the demand for electric vehicles and charging increases, it is vital we continue this pace to roll out the installation of high-power chargers to support EV drivers and those making the switch to electric.

“We look forward to continuing our expansion and installing hundreds more high-power chargers across the network.”

Since 2021, the partnership has delivered more than 320 EV charging points with 142 of those being high-power EV charging points across 18 locations.

Moto chief executive, Ken McMeikan, said: “As the largest UK motorway services operator, we are continuing our mission to transform the UK’s rest stop experience and reducing range anxiety by revolutionising the EV charging experience for motorists on motorways is at the heart of our plans.

“We’re delighted to be able to continue our roll-out of the high-power charging hubs and we will be opening many more hubs at our motorway service areas across the country throughout the remainder of this year.”  By Graham Hill thanks to Fleet News

The Government has announced £47.5 million of new funding to improve safety on 27 of the country’s most dangerous roads.

Through the third round of the Safer Roads Fund, the Department for Transport (DfT) says that 27 new schemes will be delivered, driving forward safety improvements such as re-designing junctions and improving signage and road markings.

To date, £100m has been provided through the programme to improve the 50 most dangerous roads in England, the majority of which are rural roads.

Some of the improvements already made include improved signage, safer pedestrian crossings and better designed junctions.

Transport secretary Mark Harper said: “Britain’s roads are some of the safest in the world, but we are always looking at ways to help keep drivers and all road users safe.

“We’re injecting £47.5m so that local councils around the country have the support they need to keep everyone safe, while reducing congestion and emissions and supporting local economies.”

The allocation of £47.5m to 27 different schemes has been based on data independently surveyed and provided by the Road Safety Foundation.

The data analysed is based on a road safety risk, looking at data on those killed and seriously injured alongside traffic levels.

According to Road Safety Foundation analysis, early estimates suggest that the £47.5m investment should prevent around 760 fatal and serious injuries over the next 20 years, with a benefit to society of £420m.

Once the whole life costs are factored in for the schemes, the overall benefit cost ratio of the investment is estimated at 7.4, meaning for every £1 invested the societal benefit would be £7.40.  

Dr Suzy Charman, executive director of the Road Safety Foundation, said: “The commitment and funding announced today is transformational for road safety teams in local authorities across the country.

“It will allow them to proactively reduce risk and make these 27 roads safer and more inviting for all road users.”

She explained: “Systematic changes have already had a big impact on road death and serious injury, for example seatbelts and airbags protect lives when crashes happen.

“In the same way we can design roads so that when crashes happen people can walk away, by clearing or protecting roadsides, putting in cross hatching to add space between vehicles, providing safer junctions like roundabouts or adding signalisation and/or turning pockets, and including facilities for walking and cycling.”

RAC road safety spokesman Simon Williams said that redesigned junctions together with clearer signage and better road markings are integral to improving safety.

However, he added: “While we’re pleased the Government is taking steps to tackle some of the country’s most dangerous routes, we remain keen to see its wider plans to reduce the number of fatalities as part of the long-awaited road safety strategy.”

Jonathan Walker, head of cities and infrastructure policy at business group Logistics UK, welcomed the Government cash to improve the safety of the roads network.

“It is now imperative that Government and local authorities work with the logistics industry to ensure that safety of road users continues to be prioritised, while maximising the efficiency of freight movements,” he added.

The latest round of funding from Government builds on its plans to recruit a specialised team of inspectors to build the country’ first ever Road Safety investigation Branch.

The team will look at how and why incidents happen and build an enhanced understanding of how we can better mitigate collisions. 

The 27 safety schemes receiving DfT funding 

Road	Local Authority	Funding (£)
A586	Blackpool Council	1,100,000
A35	Bournemouth Borough Council	1,890,625
A2010	Brighton and Hove City Council	600,000
A52	Derby City Council	475,000
A104	Essex County Council	1,360,000
A35	Hampshire County Council	6,040,000
A5183	Hertfordshire County Council	1,800,000
A165	Hull City Council	2,990,625
A3056	Isle of Wight Council	2,140,000
A5105	Lancashire County Council	920,000
A5038	Liverpool City Council	859,375
A186	Newcastle Upon Tyne City Council	3,650,000
A6130	Nottingham City Council	950,000
A609	Nottingham City Council	475,000
A4158	Oxfordshire County Council	800,000
A4165	Oxfordshire County Council	875,000
A2047	Portsmouth City Council	1,300,000
A6022	Rotherham Metro. Borough Council	750,000
A6042	Salford City Council	743,750
A4030	Sandwell Metro. Borough Council	750,000
A625	Sheffield City Council	1,425,000
A3025	Southampton City Council	875,000
A13	Southend-on-Sea Council	3,425,000
A1156	Suffolk County Council	1,275,000
A25	Surrey County Council	1,800,000
A439	Warwickshire County Council	1,320,000
A3102	Wiltshire Council	6,980,000
		47,569,375

By Graham Hill thanks to Fleet News

The Vehicle Remarketing Association (VRA) is calling for an industry standard battery health check to increase confidence in the used electric vehicle (EV) sector.

Consumer concerns over battery health, while not always well-informed, are real, and an accurate, credible statement on the current condition of each battery and its likely future degradation would help considerably, according to VRA chair, Philip Nothard.

“EV technology is still very new to most used car buyers, but many people have heard largely inaccurate stories about the rate at which batteries start to lose range and the cost if they fail completely,” he said.

“Our members agree that some form of industry standard battery health check would be the most effective solution, providing an accurate picture of what the consumer could reasonably expect in terms of current and future range and charging.”

Nothard explained that the motor industry knows from its experience of EVs to date that, in the overwhelming majority of cases, battery degradation will tend to be relatively low over time and will also be incremental, while total battery failure is extremely rare.

However, he said: “This is very much a matter of customer perception.”

The issue was discussed at this week’s VRA member meeting, held at Cox Automotive, Bruntingthorpe.

Titled “The Questions About EVs Remarketing Must Answer”, it featured Lorna McAtear, fleet manager at National Grid; Stuart Chamberlain, head of B2B remarketing and partnerships at Arval; Alex Johns, business development manager at Altelium; Derren Martin, director of valuations at Cap HPI; and Audrey Little, research and development executive at Arnold Clark Innovation Centre.

“We surveyed our members before the meeting and the need for an accepted battery health check was cited by 70% as a key issue that needs resolving within the used EV sector, so this is something that is very much on the agenda,” continued Nothard.

“The question from here is how we can create something relatively cheap and easy to use, has a high level of credibility, and is easily understandable by consumers.

“We are aware that some of our members have been having initial discussions with the Government and, of course, products are starting to make their way onto the market, such as those presented by Altelium at our meeting.

“What needs to happen now is that all these factors are brought together so that we can take steps forward as an industry, with wide-ranging discussions involving parties from across the remarketing sector and beyond. It would be very positive for the used EV sector if progress can be made quickly, we believe.” 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

The Government is sticking with its ban on the sale of new internal combustion engine (ICE) cars and vans from 2030, ruling out “expensive” e-fuels as an alternative.

It has also launched a consultation on its plans for a zero-emission vehicle (ZEV) mandate and committed almost £400 million to improving the electric vehicle (EV) charging network.

The announcements are included in plans, published today (Thursday, March 30), which set out how the Government will enhance the country’s energy security, seize the economic opportunities available and deliver on its net zero commitments.

E-FUELS RULED OUT FOR CARS AND VANS

With the EU and Germany reaching an agreement that will allow some ICE cars to be sold beyond 2035, if they fill up exclusively with CO2-neutral fuels – so-called e-fuels, fleets had wondered whether the UK may follow suit.

However, the Department for Transport (DfT) told Fleet News it was not considering e-fuels as an alternative to petrol and diesel.

A DfT spokesman said: “E-fuels are not proven technology, have expensive and complex supply chains, and emit much of the same pollutants as petrol and diesel.

“They might have a role for specialist vehicles, but we are not looking at them as a solution for normal cars and vans.”

Instead, the Government has committed to the 2030 phase out of ICE vehicles in its policy paper, ‘Powering Up Britain – Energy Security Plan’.

ZEV MANDATE CONSULTATION

The ZEV mandate will force manufacturers to sell a certain proportion of electric vehicles (EVs) in the lead up to 2030.

In 2024, these targets will be 22% for cars and 10% for vans, and in 2030 will be increased to 80% and 70%, respectively.

The British Vehicle Rental and Leasing Association (BVRLA) welcomed the Government’s commitment to introduce a ZEV mandate from January 2024.

In sticking with its 2030 phase-out target for new ICE vehicle sales and providing a clear trajectory, the trade body said that the Government had delivered essential clarity and certainty for the fleet and mobility services sector and its supply chain.

It was also pleased to see that policymakers had listened to the BVRLA’s requests to provide additional ZEV credits for car clubs and wheelchair accessible vehicles – ensuring that zero emission motoring will be accessible for disabled and shared transport users.

“The ZEV mandate is a critical tool in the UK meeting its ambitious net zero targets,” said Gerry Keaney, chief executive of the BVRLA.

“The clarity given today will give fleets and motorists the confidence to continue their decarbonisation journey and accelerate the transition to zero emission transport.”

He continued: “BEV demand is growing – driven by company car fleets – where over 50% of new registrations are electric. 

“We now need supply to keep pace by providing a wider range of vehicles at all price points. The ZEV mandate will help to ensure the right vehicles are coming to the UK, allowing more drivers to make a swift switch to electric.”

A consultation on the details of the Government’s ZEV mandate plans for cars and vans has been launched to coincide with the publication of its policy paper.

Following the technical consultation on the design of the ZEV mandate for new cars and vans in June 2022, and the green paper on a new road vehicle CO2 regulatory framework in July 2021, it is now seeking views on the final proposed regulatory framework.

It is specifically consulting on: the level of ZEV uptake (trajectories); how allowances and credits could be allocated and used; flexibilities including banking, borrowing and transfers between schemes; derogations and exemptions; how to regulate the non-ZEV portion of the fleet; and how the ZEV mandate and non-ZEV CO2 regulation interact.

Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders (SMMT), also welcomed the ZEV mandate consultation.

He said: “We want regulation that gives consumers choice and affordability, and enables manufacturers to transition sustainably and competitively.

“While the proposals rightly reflect the sector’s diversity, late publication and lack of regulatory certainty make product planning near impossible, and the continued lack of clarity as to what technologies will be permitted beyond 2030 undermines attempts to secure investment.

“Measures to improve the customer charging experience are a step in the right direction, but the fact that contactless credit or debit card payments will not be available on the vast majority of public chargers is a major failing that will significantly disadvantage EV drivers.

“It is also disappointing that, unlike in other countries, there is no commensurate regulation to drive investment into the public network given that paucity of chargepoints remains the biggest barrier to buying an electric vehicle.

“Ultimately, for this mandate to be successful, infrastructure providers must now turn promises into investment and catch up with the commitments of vehicle manufacturers.”

He added: “The UK new car and van market is already moving at pace towards electrification, the result of massive investment by manufacturers and increased consumer demand.

“If the UK is to lead the global race to zero emission mobility, however, it must go further and faster in unlocking infrastructure investment, incentivising EV ownership and helping ensure more of these vehicles are developed and built in Britain.”

Ministers say that they will use evidence from the consultation, which closes on May 24, to finalise the design of the ZEV mandate and CO2 emissions regulation.

Fiona Howarth, CEO of Octopus Electric Vehicles, said that the “devil will be in the detail”. She added: “The ZEV mandate will set the roadmap towards 2030 zero emissions transport – cutting harmful emissions for both people and the planet.

“We need to end our reliance on imported fossil fuels as we transition to zero emission vehicles powered by homegrown green energy.”

NEW CHARGE POINT FUNDING

The Government has also announced it will invest a further £381 million through the Local Electric Vehicle Infrastructure (LEVI) fund, along with £15m for the On-Street Residential Chargepoint Scheme (ORCS), to help install tens of thousands of new chargers across the country – alongside private sector investment.

Last month, the Government said it was expanding its LEVI pilot, with 16 more councils receiving funding to deliver new charge points.

The scheme is aimed at delivering EV charging infrastructure for residents, from faster on-street charge points to larger petrol station-style charging hubs.

Taken together, the new funding will support the installation of tens of thousands of new chargers across the country, says the DfT, increasing EV infrastructure in every area and ensuring the UK’s charging network can support the increasing number of EV drivers and those considering the switch.

Transport secretary Mark Harper said: “Transport is one of the most important sectors for achieving net zero by 2050, and so we must accelerate our efforts to decarbonise how people get from A to B while growing our economy and supporting thousands of green jobs.

“Today’s announcement is a great stride forwards – offering people more choice on how to stay connected while delivering the carbon reductions needed to achieve net zero.”  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

A group of EU countries, led by Germany, is seeking to overturn a ban on the sale of new petrol and diesel cars by 2035.

The EU has delayed a landmark vote on the phase-out of petrol and diesel cars, largely due to intervention from Germany’s coalition government.

Supporters of carbon-neutral synthetic fuels or e-fuels, coalition members the Free Democrats (FDP) want new internal combustion engine (ICE) vehicles running on these to be exempt from the proposed ban.

Poland, Italy, the Czech Republic and Bulgaria have also voiced opposition to the ban, while Austrian chancellor Karl Nehammer welcomed FDP’s stance, saying he would also oppose banning ICE vehicles.

Sandra Roling, director of transport for the Climate Group, said: “It is deeply concerning that Germany is leading efforts to postpone the EU’s agreed 2035 ban on the sale of new petrol and diesel cars and seek concessions for e-fuels.

“That six other countries are now rowing in behind Germany risks undermining business trust in the EU itself, not to mention having a detrimental effect on the health of the EU’s people and its climate, along with prolonging the life of the internal combustion engine.”

The EU Parliament voted to back a European Commission proposal for a ban on the sale of new petrol and diesel cars from 2035, last year.

The plans were unveiled in 2021, and seek a reduction to zero CO2 emissions from new cars sold in the bloc by 2035.

MEPs voted to require carmakers to cut their average fleet emissions by 15% in 2025, compared to 2021, by 55% in 2030, and by 100% in 2035.

It accelerated the EU’s previous plan, which targeted a 37.5% reduction by the end of the decade.

In a letter to the European Commission, the Climate Group along with 47 businesses have warned that any delay of the ban would have a devastating impact on air quality and the environment across the bloc and would call into question the EU’s ability to reach its climate commitments.

Signatories to the letter include Volvo Cars, Ford of Europe and Vattenfall, who say that going ahead with the ban as planned would provide legislative certainty, which is vital for businesses to push forward with their decarbonisation plans and invest in electric vehicles (EVs).

Rowing back now would set a dangerous precedent, undermining business trust in the EU’s legislative process, the businesses argue, it adds.

“Legislative certainty is vital for business planning,” said Roling. “Our asks are simple. Stick to the 2035 date, and no concessions for e-fuels. Give businesses the clarity and certainty they need to invest in the switch to electric vehicles.”

The UK announced its ban on the sale of new petrol and diesel cars and vans from 2030, three years ago.

The sale of hybrid cars and vans that can drive a significant distance with no carbon coming out of the tailpipe will continue to be sold until 2035.

Fleet operators from the UK believe certain key commercial vehicles may require exemptions from the ICE ban, but there are currently no plans to change the deadlines previously agreed here.

Jim Rowan, CEO of Volvo Cars, said: “Now is not the time for backtracking and blocking of science-based climate targets for our industry.

“Now is not the time to put domestic political interests ahead of the health and welfare of our planet and EU citizens, and indeed of future generations.

“Now is the time for strong, decisive and progressive policy and leadership.” By Graham Hill thanks to Fleet News

The huge potential of reducing a vehicle’s impact on the climate by going electric is being diminished by a growing trend towards larger and heavier plug-in cars, new research suggests.

Green NCAP’s results, published today (Thursday, March 23), show that vehicle size is “significantly” increasing the negative impact on climate and energy demand, driving not only a rise in fuel and electric energy consumption, but also creating a wider footprint in vehicle and battery production.

It tested the Life Cycle Assessment (LCA) of greenhouse gas emissions and primary energy demand of 34 cars in 2022, with different powertrain types: battery electric, hybrid electric, conventional petrol and diesel, and one vehicle, the Ford Puma, that runs on alternative fuel.

The LCA calculations used Green NCAP’s interactive Life Cycle Assessment tool, with calculations based on the average energy mix of the 27 EU Member States and the UK, and an average mileage of 240,000km (150,000 miles) over 16 years.

Green NCAP says the results show the “current and continuous trend” towards larger and heavier cars “significantly increases” the negative impact on climate and energy demand.

It drives not only a rise in fuel and electric energy consumption, but also creates a wider footprint in vehicle and battery production.

LCA results from the 34 tested cars show that battery electric vehicles (BEVs) are ahead in reducing greenhouse gases with 40‑50% less emissions compared to conventional petrol cars, depending on the model chosen.

In terms of primary energy demand, the differences between electric and conventional cars are less.

The hybrid electric sport utility vehicles (SUVs) that were tested, have higher fuel consumption and, due to increased emissions in the usage phase, have life cycle values in the range of 200‑240g CO2-equivalent/km and an estimated 0.85‑1.0 kWh/km.

These numbers lie between the values of a large electric SUV and a conventional petrol- or diesel-powered counterpart.

In the case of the bio-ethanol (E85) operated Ford Puma, compared to the same car in petrol mode, greenhouse gas emissions reduced to a level closer to the range of battery electric cars.

The processes needed for the bio-fuel production increase the Puma’s life cycle energy demand by 57%, yet given 60% of the total energy needed is renewable, much less fossil fuel is used, said Green NCAP.

The calculations show the considerable differences between each car’s impact on the environment, but also reveal the significant influence of mass on greenhouse gas emissions and primary energy demand.

Green NCAP says that this is clearly seen for all powertrain types even though the correlation might be slightly distorted for some cars due to differences in aerodynamic drag or powertrain efficiency.

Nevertheless, it says, the overlying message is clear – the heavier the vehicle, the more harm it does to the environment and the extra energy required to drive the car.

In general, battery electric vehicles emit significantly less greenhouse gases over their lifetime, but some of the gains are lost due to their increased weight.

Aleksandar Damyanov, Green NCAP’s technical manager, explained: “Electric vehicles and electrification in general offer huge potential in reducing greenhouse gases, but the ever-increasing trend of heavier vehicles diminishes this prospect.

“To counteract this, Green NCAP calls on manufacturers to reduce the mass of their products and calls on consumers to make purchasing decisions that not only consider the powertrain of their new cars, but also consider their weight.”

To better illustrate how mass affects environmental performance, Green NCAP has performed additional numerical simulations based on real-world Green NCAP measurements.

These studies show that all three powertrain types (BEV, non-rechargeable hybrid HEV and conventional ICE), when their mass increases, have the same relative rise in energy consumption of about 2% per 100kg.

However, their absolute consumption figures are very different.

Furthermore, higher mass is a major factor in the environmental impact of vehicle production.

Based on today’s estimates, a net mass increase of 100kg potentially results in an additional 500‑650kg of greenhouse gas emissions and 1.9‑2.4 MWh of energy demand in vehicle production (without battery, including recycling).

Growing trend towards heavier vehicles

Over the past ten years, the average weight of vehicles sold has increased by about 9% or around 100kg.

Sales of small SUVs have increased five times, becoming the most sold vehicles in 2022 with about four million cars sold across Europe.

Large SUV sales have further increased seven times leading to a total sales number of roughly 700,000 cars.

For a compact family car, the 100kg average increase in weight is responsible for about 1.4 tonnes of additional greenhouse gas emissions and 5.7 MWh of extra energy used.

According to the European Automobile Manufacturers’ Association (ACEA), in 2022, 9.3 million vehicles were sold, out of which 12.2% were battery electric.

This leads to a revealing calculation – assuming eight million vehicles are on average 100kg heavier, the impact of this weight increase on the climate is the equivalent of about 200,000 extra cars on European roads.  By Graham Hill thanks to Fleet News

The Tesla new car price reductions announced overnight on January 12 were significant, unexpected and widely publicised.

We may never know exactly what impact they had on used values, but the timing of the action, in the midst of a sharp downturn of used values for battery electric vehicles (BEVs), could not have been worse.

In the case of Tesla Model 3, used values had already decreased to the extent that nearly new used retail values were comfortably away from the revised list prices, but the impact on Model Y was to send used values for all three derivatives above cost new.

Unsurprisingly, there was an immediate impact on used values and we expect further significant reductions on this model.

Model 3, in particular, has been used across the industry as a comparison vehicle, even where it is not strictly a direct competitor vehicle for certain models.

As a result, the falls in Tesla Model 3 values are at least partially reflected in many other BEV models.

At Cap HPI we have made an additional negative adjustment to our forecasts due to a combination of reasons: an expectation of increased new car volume due to an improved competitive position (residual values and guaranteed future values are unlikely to decrease in pound note terms by as much as the list price reductions) and also the list price reductions potentially signal a move from a niche premium brand to a more mainstream, volume brand.

LEVERS FOR OTHER MANUFACTURERS

There are also other levers that rival manufacturers could pull in an attempt to reduce Tesla’s competitive advantage.

Although most BEV models are subject to limited fleet discounts, some adjustment may be possible.

Many will be looking very closely at their finance offerings to ensure interest rates are as competitive as possible and exploring whether there are any additional elements which can be incorporated into a new car deal, such as free servicing for a fixed period (unlikely to involve a large financial commitment for a new battery electric car).

As far as we are aware, most other OEMs are unlikely to follow suit with reductions to their own list prices.

Some, like Kia, came out very quickly, keen to rule such a move out and distance themselves from Tesla’s behaviour, while others have kept their cards closer to their chest.

It seems more likely that future planned list price increases may be cancelled, rather than making any attempt to match Tesla on the cost new front.

Some manufacturers also have the option of bringing cheaper versions of their existing vehicles to market; either by including smaller batteries which are already available in other markets, or reducing specification deemed to be unessential or adding limited value in the used market. By Graham Hill thanks to Fleet News