The government are expected to increase the number of grants being offered for electric vehicles by expanding the grants to the commercial sector. It is expected that this is going to encourage an increased number of the vehicles being operated by businesses.
A recent report published by the Massachusetts Institute of Technology has suggested that those who decide to purchase an electric vehicle will be able to get back the initial additional costs by benefitting from significantly reduce running costs. The research is targeted towards businesses in the United States, but it is also likely that it is going to apply in the UK.
The government of recently confirmed that vans are going to be one of the first commercial vehicles to benefit from the scheme. Those who purchase electric vans are going to be able to claim back 20 percent of the cost of the vehicle from the government. There is going to be an £8000 cap on this sum, but this still means that the vast majority of vehicles are going to be covered by the scheme.
When compared with a normal consumer, businesses are able to take a more financially long-term view. They are more able to analyse and understand the cost benefits over the long-term and therefore are more likely to take advantage of electric vehicles.
It is not just the cost of powering the vehicle that is going to benefit companies. There are also tax incentives which mean that companies won’t have to pay any tax on the electric cars until at least 2015. It is not just electric vehicles that can potentially benefit companies financially, and hybrid vehicles also benefit from a lower tax rate.
The entire upfront capital required to purchase a van can also be 100 percent written off against the company’s year-end profits. Another tax benefit is that there is no road tax associated with the vehicles, and they are not subject to the congestion charge when going into London.
The vehicles are useful for companies that have a social responsibility programme. They play an important part in reducing the carbon emissions of a business and can be involved in a marketing campaign based around environmental responsibility. A company that takes on electric vehicles instead of petrol powered ones will benefit from a very positive image that will be respected by the green community.
One of the major reasons why electric vehicles are less popular among consumers is because they have a large upfront cost. This is something that businesses are more able to bear, so many analysts are expecting that they are going to be much more successful in the commercial sector.
Another major problem with electric vehicles for consumers is that they have a limited range. For a business, it is much easier for them to plan journeys and, by keeping several petrol cars as well, they are able to assign these for longer trips, while keeping the electric vehicles for shorter ones.
It is also likely that companies are going to be able to install better charging infrastructures. Some people who have electric vehicles will have to charge them up by running electrical wires out of the home, which can be a hassle. Companies are more likely to install specific charging points as they will have many vehicles to charge.
The government of recently announced which vehicles are going to be eligible for the grant system and it is going to be in effect before the new number plates are released later this year. The sales of the chosen vehicles are expected to be significantly influenced by the grant scheme.