by Paul Marchment, Arval SME development manager.
Smaller organisations are often more agile and receptive to new technologies. At Arval, it is our customers with smaller fleets who are the most excited about the potential of electric vehicles. 
So I am currently running a series of workshops on new vehicle technology to help these businesses better understand the options.
I am personally a huge enthusiast of hybrid and full electric vehicles when they are used in the right way, and I drive one myself.
However, while the benefit in kind tax savings can be compelling for the employee, electric vehicles will only help businesses to save money and reduce their carbon footprint under the right circumstances.
There are a number of factors to take into account:
- Not all electric vehicles are the same. Some are powered entirely by an electric motor. Hybrids use an electric motor for a mile or two, then switch to petrol. Plug-in hybrids can run for 20 or 30 miles on the battery before switching to petrol. Each is suited to a different driving situation.
- Choosing the right electric vehicle means understanding the driver’s typical journeys. Ideally, map out the driver’s routine, including the daily commute, trips taken at the weekends and during holidays, before making a decision. Factor in the distance travelled, the time taken, the type of road used and the frequency of trips.
- It seems obvious, but adequate recharging facilities at home and ideally at work are essential if the financial benefits of the vehicle are to be fully realised. Does the employee have a garage or driveway where the vehicle can be easily recharged overnight? It can take several hours to recharge some electric cars and vans, so if the recharge point is not near home or work, the vehicle may be less economic and ultimately impractical to run.
- Understand your motivation. Is ecology the primary goal? Or is it lessening benefit in kind tax for your employees? Or are you attracted by a particular make or model? Many of the selection criteria that are important in a petrol or diesel vehicle are less relevant when selecting an electric car. For example, miles per gallon data is useful for a petrol engine, but may be misleading in a hybrid, depending on how the vehicle is used.
At Arval we are very enthusiastic about new vehicle technology but are passionate to see it used in the right way and for the right journey requirements. Get this right, and it could be an excellent decision for you and your business.
