LEASING companies could see electric vehicles occupy more than 50% of new orders on their books in the next two years.
Michael Woodward, UK automotive lead at Deloitte, said that employers across the UK consider electric as a way to reduce both costs and their impact on the environment.
A number of speakers at last week’s Leasing Broker Federation annual conference also said that the rise of EVs will present opportunities for leasing companies.
James Cowan, Charging Manager – EV Charging and E-Mobility Solutions at Webesto Group told the conference: “The increase in the number of electric vehicles will provide brokers with opportunity to push customers towards meeting future emissions targets and to wrap complete packages, such as chargers, into the lease.”
Jon Horsfield, Chief Executive and Founder at Diode Fleetpower, added that electric vehicles have the potential to reduce fleet costs by 75%, cut BiK tax, avoid emission zone charges and improve a company’s green credentials.
Commenting on the SMMT’s latest new car registration numbers, Deloitte’s Woodward said: “Once again, we have seen the EV market (+236.4%) perform tremendously.
“Current sales of EVs could be dwarfed by demand when the new 0% company car tax rates on zero-emission vehicles come into effect in April 2020.
“As a result of these tax incentives, a greater choice of models available, and a change in consumer attitudes towards the technology, we expect EVs to be an increasingly common sight on UK roads.
“The largest leasing companies are already reporting double, and in some cases triple, digit growth in orders for EVs.
“Some leasing companies could see EVs occupy more than 50% of new orders on their books in the next two years as employers across the UK consider electric as a way to reduce both costs and their impact on the environment.
“However, the predicted growth in demand for EVs will not come without challenges. Manufacturers and dealers will need to think carefully about how they manage this growth.
“There is a fear that demand will outstrip supply, a significant increase in EVs on the road will put pressure on the country’s charging infrastructure and considerable investment is still required.”
