A new study from EY and Eurelectric has suggested that fleet electrification will play a significant role in influencing the wider adoption of electric vehicles (EVs) and make the largest contribution to the decarbonisation of road transport on the journey to net zero.
The study has collated the insights and opinions of industry leaders in many sectors including automotive, oil and gas and battery manufacturing. The companies state the findings have identified a number of actions needed to accelerate the electric mobility revolution.
The study reveals that transport emissions have risen for the last three years and a 65% reduction is required if Europe is to achieve its target of a 55% reduction from the year 1990. It identifies the acceleration of fleet electrification as essential to attaining this, calling for new funding models for charging infrastructure and the reshaping of policy goals to align with commercial opportunities.
Four key drivers for this transition are highlighted in the report:
- Carbon emissions standards will restrict the sale of non-EVs and fleets will have to electrify as a consequence.
- More than 300 major European cities have now imposed low-emission zones, which will mean that organisations and drivers that don’t switch to EVs will have to pay a penalty.
- The reduction of servicing, maintenance costs and fuel savings provide economic incentives.
- Fleet vehicles tend to travel on similar routes and since there are fixed destinations and stopovers, these can be combined with charging.
According to the study, throughout 2020, one million vehicle sales in Europe were either electric or hybrid models, which equates to one-in-ten passenger cars sold. In the UK, battery EV (BEV) sales had a 185% increase through the year, with a 91% increase for plug-in hybrid EVs (PHEV).
David Borland, EY UK & Ireland Automotive Leader, looked upon these figures with optimism, stating: “If you consider that this performance occurred during a year that was 29% down on overall passenger car sales, then this is one aspect of the sector to feel genuinely optimistic about.
“It is clear we are seeing significant shifts in the direction of travel for consumers towards electric vehicles and January saw this trend continue with BEVs increasing by 54% and PHEVs by 28%.”