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Fleet Electrification to drive EV uptake

Laurie Heyworth Research Analyst

The UK government has set measures to “effectively” ban the sale of all new internal combustion engine (ICE) vehicles from 2035 onwards to support the UK’s target to achieve net zero by 2050. It is expected that electric vehicles (EVs) will replace petrol and diesel as the primary mode of transport. The findings of the joint research paper Leading the charge! Fleet Charging – a catalyst for the EV revolution, co-authored by Cornwall-Insight and PwC, indicate that fleets will play an important role as a catalyst for the EV revolution. It is expected that fleet electrification will enable EV adoption by private consumers. Fleets are groups of vehicles which are owned or leased by businesses for commercial purposes. With over 5.3mn vehicles on UK roads, fleets offer the scale and capital needed to accelerate the uptake of EVs. As shown in figure 1, fleets represent around 56% of new UK car registration in 2019. Fleet vehicles have a typical life cycle of two to four years until they are sold in second-hand EV markets to domestic consumers at lower prices. The electrification of fleets will also guarantee the utilisation of EV charging infrastructure by providing predictable demand by millions of vehicles requiring high mileage. This will allow charging operators to enter long-term contracts with corporates/off-takers, ensuring more predictable revenue streams.   By providing the necessary economics to underpin the widespread construction of EV charging infrastructure across the country, fleet electrification will trigger a wider adoption of EVs, reducing concerns around &...

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