Companies can benefit from significant savings by making the switch to electric cars , from reduced fuel and maintenance costs to a range of tax and local incentives, including access to low emission zones and parking concessions.
Electric cars also reduce carbon and other emissions, which contribute to poor air quality in towns and cities.
Many businesses have already accessed the benefits of electric vehicles (EVs), with electric and plug-in hybrid cars becoming mainstream in the company car market. The uptake in electric vehicles is being driven by attractive savings, making the cars cost-effective for company car drivers and their employers. Take a look at our case studies for examples.
Electric and plug-in hybrid cars (ultra low emission vehicles)
An ultra low emission vehicle (ULEV) includes any vehicle that emits less than 50g/km of carbon dioxide (CO2) at the tailpipe. They include:
Pure or battery electric vehicles (EVs or BEVs)
Plug-in hybrid vehicles (PHEVs)
Range-extended electric vehicles (E-REVs)
Hydrogen fuel cell electric vehicles (FCEVs)
Hybrid electric vehicles (HEVs) are not ultra low emission vehicles and do not plug in to recharge. A hybrid electric vehicle has an internal combustion engine and a small battery, which is charged when the driver brakes, known as regenerative braking. The battery power either assists the engine or drives the wheels entirely for a very short distance (usually less than a mile). This reduces fuel consumption and emissions, particularly in stop-start driving conditions.
Credit: Char.gy
Driving range of electric cars
An electric car’s range is how far it can travel before it needs to be recharged. For a plug-in hybrid, the range is how far it can travel on battery power, before switching to the petrol engine (or, very rarely, the diesel engine).
Battery technology is developing quickly and the driving range on new electric cars continues to increase.
Typical ranges for the different vehicle types are:
Range extended: 60-150 miles on electric-only power, and a further 80 to 250 miles powered by electricity generated by the internal combustion engine. However, E-REVs are less commonly available and are not currently in production by any major manufacturer (with the exception of the LEVC Taxi).
Range also varies depending on:
How efficiently you drive – anticipating the road ahead and making full use of regenerative braking increases range.
How you heat or cool the car (preconditioning) – heating or cooling the car while plugged in and using heated seats, rather than heating the cabin, increases range.
How fast you drive – driving at high speeds reduces range.
Credit: Volkswagen
Why choose electric cars?
Electric cars can be an excellent choice for businesses, both financially and environmentally. As well as lower fuel costs, there are various grants and tax incentives available, which can help make a stronger business case.
We also have a series of introductory video guides to a range of electric vehicles as well as a video series on the benefits of EVs and what you should look out for.
For larger fleets, we offer fleet reviews, which offer analysis of your fleet and provide whole life cost (WLC) analysis for suitable models and estimated savings. This can help you to reduce energy use and emissions. We work with public and private sector organisations.
Electric cars usually cost more than their petrol or diesel equivalents to buy or lease, but whole life cost (WLC) analysis shows that they can be cheaper on a pence-per-mile basis.
Whole life cost modelling includes aspects such as fuel, maintenance and national insurance contributions, in addition to the purchase or lease price.
As electricity is significantly cheaper than petrol or diesel, electric cars are cheaper to run. A full charge in a pure electric vehicle will give a typical range of 220 miles and will cost approximately £23 if charging at home (Data assumes that an average electric car has an energy consumption of 3.1 miles/kwh and used the standard domestic electricity rate). Driving 220 miles in a petrol or diesel car will cost around £41 in fuel (Data assumes average petrol car has an MPG of 36 and petrol costs 148p/ litre) .
To offset the higher purchase cost or lease cost, an electric car or plug-in hybrid must cover sufficient miles for the fuel savings to add up. The break-even mileage varies but can be 30 – 80 miles a day, depending on the vehicle price, how long it is kept on fleet, electricity costs and if additional incentives are available, such as the London congestion charge cleaner vehicle discount available until December 2025.
Electric cars are usually cheaper to service and maintain than equivalent vehicles with internal combustion engines, including plug-in hybrids. This is because they have fewer service requirements, such as oils and filters.
Regenerative braking recharges the battery using the vehicle’s kinetic energy when slowing down. It reduces wear and tear on the standard friction brakes, extending their life and reducing replacement costs.
