Electric Vehicles for Fleets
Summary
In this guide, we’ll provide some information on EV fleet management, reveal some of the benefits of EV fleets for businesses, and explain the potential EV fleet tax benefits.
What is an EV Fleet?
When a company owns or leases a group of vehicles intended for business use, these are usually referred to as a fleet of vehicles. These can be cars, vans, lorries or motorcycles, and the size of the fleet can vary significantly depending on the business. A small to medium business may have six fleet vehicles for employees when travelling for meetings, or a nationwide haulage company could have 200 lorries for its drivers.
An EV fleet means the fleet vehicles are all-electric models. Some businesses might choose to have a combination of electric vehicles and petrol or diesel-powered vehicles.
Defining an EV Fleet
So, what does an EV fleet look like for a business? The answer is – whatever your business needs. The range of electric vehicles is expanding and developing constantly as manufacturers race to maintain the pace of innovation, and to meet the varying demands of EV fleet management.
Business electric car fleets can include a selection of different vehicles, tailored to various employee job roles and mileage capacities.
Types of electric vehicles in a fleet
There’s a big choice of electric vehicles for fleets. We’ll be focusing mainly on all-electric vehicles – or Battery Electric Vehicles (BEVs) in this guide, but businesses might also consider a plug-in hybrid (PHEV) vehicle, which has an electric battery supported by a petrol engine.
Fleet managers need to consider the most suitable type of electric vehicle that employees would need. Which EV’s suit the requirements of the business best? If employees within the business travel regular long-distance journeys, vehicles with a larger battery range will be ideal. Travelling with lots of equipment? A vehicle with plenty of storage capacity is top of the list, then; potentially even a small van or truck (yes, there are all-electric versions of these types of vehicles).
If employees are more likely to be driving shorter distances– for client meetings maybe or sales appointments – a business might choose a compact EV hatchback, or a fleet of stylish all-electric SUVs.
Examples of businesses using EV fleets
There is an ever-growing number of businesses in the UK adopting electric vehicles for fleets, including many major companies. Among them is the BT Group, who announced – in January 2025 – what was described as the UK’s ‘largest ever commercial Electric Vehicle fleet order’ of around 3,500 new vehicles. Once complete, the BT Group will have an EV fleet close to 8,000 vehicles.
Tesco operates hundreds of pure electric vans for its delivery services and has committed to an EV fleet by the end of 2030, while Amazon is rolling out plans to introduce almost 150 electric HGVs to its delivery fleet. As of January 2025, Royal Mail has 6,000 EVs as part of its fleet of vans.
The rise of EV fleets in the UK
The UK government has implemented a ban on sales of new petrol and diesel cars from 2030 – a revised date from the original 2035 deadline. This puts increasing emphasis on sales of new EVs. Recent figures published by the Society of Motor Manufacturers and Traders (SMMT) show that sales of new all-electric vehicles, or BEVs, performed strongly in December 2024 – but that the fleet market was primarily responsible.
Key statistics on fleet electrification
SMMT data on new car registrations revealed that 43,656 pure-electric or BEV models were recorded in December 2024, compared to 27,841 in December 2023; a 57% increase. BEV sales in December 2024 accounted for a 31% market share (compared to a 19.7% market share in December 2023), though that was still behind new petrol car registrations (42%).
For the whole of 2024, there were 381,970 BEV registrations – up from 314,687 in 2023.
However, the figures also show that purchasing or leasing electric vehicles for fleets drove much of this growth. SMMT’s report noted that ‘around 64,000 more BEVs were registered by businesses and fleets than a year ago’. The continued development of fleet vehicle electrification in the UK seems encouraging.
What are the Benefits of Electric Vehicles for Fleets?
To help push the growth of electric vehicles, and encourage more and more businesses to consider fleet vehicle electrification, there are multiple benefits available – from cost savings to tax incentives, lower carbon emissions and access to low-emission zones.
We’ve covered some of the key benefits of electric cars here, while you can learn more about the various grants and schemes for EV drivers here. In the following section, we’ll focus specifically on the benefits of EV fleets for businesses.
If you’re involved in EV fleet management, be aware that some advantages – such as grants and EV fleet tax benefits – can be subject to change, so stay up to date by checking the UK government’s Office for Zero Emission Vehicles (OZEV) online information.
Cost Savings for Businesses
For fleet managers, cost control is always a priority — vehicles are expensive, and even more so if you’re dealing with hundreds of them. The cost of fleet ownership can be substantial, particularly on a large scale.
EVs might be more expensive to purchase or lease from new to start with, compared to petrol or diesel vehicles, but it’s accepted that once that initial investment has been made, there are cost savings for businesses. Especially with potential support available in the form of charging, infrastructure, and other grants.
So, what are the potential benefits of EV fleets for businesses?
Lower running costs compared to petrol and diesel vehicles
Electric vehicles, overall, typically do cost less to run in comparison to petrol and diesel cars and vans that need filling up at fuel stations. It’s cheaper to charge an electric battery than filling up a tank with fuel – and if a business has the means for employees to charge from a work location instead of relying on more expensive public charging stations, it can be cheaper still.
For businesses looking to get charge points installed, support is available. The Workplace Charging Scheme contributes towards the cost of installing up to 40 EV charge point sockets across workplace locations. This could be a maximum of 40 at a single workplace site, or 40 divided across multiple work locations. An EV infrastructure grant is available, too. This can cover up to 75% of the cost – up to £15,000 – of work needed to provide the infrastructure required to install charge points.
Reduced maintenance expenses
Vehicle maintenance is also expensive, with regular servicing required. With an all-electric vehicle, however, the maintenance is vastly reduced; the Energy Saving Trust has reported that servicing and maintenance costs can be up to 40% lower on an EV compared to a petrol or diesel car.
Why? Simply, an EV has fewer mechanical parts. There’s no engine to service, no gearbox, and with regenerative braking a feature in many EVs, less wear and tear to brake discs and pads. Electric vehicles do still need servicing, but less often than traditional Internal Combustion Engine (ICE) models.
Tax Benefits and Incentives
Drivers of EVs may qualify for tax benefits as an incentive for choosing an all-electric vehicle instead of a petrol or diesel model. If you drive an electric vehicle as a company car, you need to know all about Benefit in Kind (BIK) car tax, but if you’re involved in EV fleet management you’ll be more concerned with any potential EV fleet tax benefits.
Zero road tax for EVs
Until April 1st, 2025, registered keepers of electric cars enjoy the exemption of paying on annual road tax. However, those rates are changing.
For all-electric, zero or low emission cars registered on or after April 1st, 2025, road tax is set as £10 in year one, and the standard rate of £195 from year two onwards. Incidentally, for older vehicles, registered between April 1st, 2017 and March 31st, 2025, the standard rate of £195 applies from April 1st, 2025.
New electric vehicles registered on or after April 1st, 2025 with a list price of £40,000 or more will also incur the additional expensive car supplement from the second year of its licence. Something to consider when selecting the make and model of a fleet vehicle.
The more positive news is that the first-year rate of £10 on new EVs will be frozen until April 2029, so every new electric car will only be taxed £10 for its first year following registration.
And, there are substantial road tax rises for other vehicle types.
There’s more detail on road tax and electric cars in our guide here.
Enhanced Capital Allowances for EV fleets
A business buying electric vehicles for fleets usage can claim capital allowances on their purchases. An electric car qualifies for what’s classed as ‘enhanced capital allowances’ which means a business can deduct the full 100% of the vehicle cost from its profits before tax.
For companies that buy an electric vehicle, it’s one of the most appealing EV fleet tax benefits as it provides immediate tax relief.
Environmental Advantages
Let’s not forget perhaps the most important reason EVs were developed and introduced in the first place – being kinder to the environment. The automotive industry is now fully geared up for a more sustainable future; cleaner driving with zero tailpipe emissions.
Lower carbon emissions for a sustainable fleet
Any business leaders asking, ‘Should I switch to an EV fleet?’ really needs to think responsibly and consider the carbon footprint its fleet of drivers creates. A fleet of 100 petrol vans used for deliveries will have a significant negative impact on the environment, particularly in terms of air pollution. Switching that fleet to EVs drastically cuts that, lowering carbon emissions.
Meeting corporate social responsibility goals
For many businesses, reputation is important – in the eyes of its customers, any shareholders, directors, and employees. In today’s increasingly eco-conscious world, businesses should want to act responsibly and ethically. Many companies will have what’s known as a Corporate Social Responsibility (CSR) strategy, designed to help them make a positive impact to society.
For businesses that use company vehicles, having electric vehicles for fleets can help to meet CSR goals, demonstrating care for the environment, and a commitment to the global pledge of achieving net zero emissions by 2050.
If a business wishes to achieve “B-Corp” certification, moving to an EV fleet may help in the process of becoming “B-Corp” certified. Adopting an EV fleet shows that a business has a commitment to its goals to reduce the impact it has on the environment. If it is a goal for the business, an EV fleet could help. Click here to find out more about B-Corp Certification
Improved Driving Experience
A key benefit of using electric vehicles for fleets is one that’s not always discussed as much as potential tax benefits or available grants, but it’s a simple one. And an important one. Electric vehicles are just great to drive, offering what many motorists believe to be an improved driving experience.
Quiet operation and smooth acceleration
EVs are almost effortless to drive. All electric vehicles have an automatic transmission, so there’s no clutch to manage or gearbox to operate – just select drive, press the accelerator, and away you go. Acceleration is super-smooth and fast, too; no need to move through the gears as the vehicle gains pace as instant torque is delivered.
No noisy, rumbling engine, either. EVs are slick and quiet. Embrace the calm and enjoy the ride.
Access to low-emission zones
With some UK cities now having clean air zones, or low emission zones, there’s a practical benefit to business electric car fleets. Areas of major cities, including Birmingham, Bradford, Bristol, Sheffield, Newcastle, and Gateshead, have clean air zones, while London has low and ultra low emission zones. Scotland has low emission zones, in Aberdeen, Dundee, Edinburgh, and Glasgow.
Drivers of some vehicles may find access to these zones limited, or need to pay a charge to enter – but EVs can enter without charge. If a business is located in and around cities with clean air and low emission zones, and needs regular access to them, it can be a huge benefit to have an EV fleet and therefore avoid any restrictions.
Leasing an Electric Fleet for Your Business
If the cost of EV fleet ownership seems too substantial for your business, there is another option. Instead of buying a fleet of electric vehicles outright, a business could choose to lease EVs instead. Read our in-depth guide to EV leasing vs buying here.
Why Lease an EV Fleet?
Is it better to lease an EV fleet instead of buying? There’s no right or wrong answer – it depends on each business. Leasing can be a more flexible option, but bear in mind that you won’t own the vehicles outright. There are certainly some attractive benefits, though.
Lower upfront costs
There are much lower upfront costs if a business decides to lease electric vehicles for fleets. Instead of buying the EVs outright, or committing to a payment plan that sees the business own the vehicles after a period of time, leasing an electric vehicle usually only requires an initial loan payment, followed by monthly payments.
This has its pros and cons. Not buying the EV means the business won’t be able to claim the full cost of the vehicle before tax, taking advantage of enhanced capital allowances. But, the business can claim for the monthly payments, reducing its corporation tax bill.
Flexibility in upgrading to newer models
Leasing an EV provides flexibility. A typical leasing agreement might last 24 or 36 months, after which the vehicle is returned. The business can then upgrade to newer models. This means the fleet can have new electric vehicles every two or three years. Compared to owning an EV, there’s no need to sell the vehicles or discuss part exchange arrangements with dealerships to acquire new models. Leasing can be simple and stress free.
Key Considerations for Leasing
Leasing EVs for your business fleet can be a convenient solution, but there are still some important considerations before making a decision. A business might not own the vehicle, but its employees are still responsible for the care of that vehicle during the lease agreement. All leasing companies will have terms and conditions attached to the agreement that can affect how the vehicle is driven and maintained.
It’s important to understand these before committing to an agreement.
Lease terms and mileage limits
Leasing deals for EVs – and any type of vehicle – will come with mileage limits set. This is an important detail, so anyone responsible for EV fleet management needs to make sure the mileage limits, on each vehicle, are set according to the needs of the business.
A mileage limit is the amount of miles you can drive in each vehicle; it might be stipulated per year of the deal, or over the length of the agreement. Typical mileage limits could be 5,000-10,000 a year. If you exceed the agreed limit, you can still drive the vehicle – but you’ll pay additional costs for every extra mile. Excess mileage charges will be stated in the lease terms; even at a few pence per mile, this can quickly add up.
So, if fleet drivers are going to be covering lengthy distances regularly, it’s vital that the mileage limit is agreed to reflect that. Of course, the higher the mileage limit per vehicle, the higher the monthly repayment cost.
Maintenance and servicing packages
When leasing an EV, you are responsible for maintaining the vehicle throughout the lease period. Many leasing companies offer maintenance and servicing packages, which can be added to your agreement for an additional monthly fee. These packages typically cover routine servicing, general maintenance, and in some cases, repairs that may be required during the lease term.
One key advantage of leasing a brand-new EV is that MOTs are not required for the first three years. This means that for many lease agreements, particularly those lasting two to three years, you won’t have to worry about arranging or paying for an MOT at all, helping to reduce both costs and administrative hassle.
While maintenance packages are optional, they can provide added peace of mind by covering routine servicing and unexpected repairs, ensuring your EV stays in top condition without unexpected expenses. If you choose not to include a package, your business will be responsible for covering servicing and any necessary maintenance costs during the lease period.
At Dick Lovett, we can support businesses looking to lease electric vehicles – whether it’s for limited companies, VAT-registered companies or even sole traders. Contact our expert Corporate team today to tell us exactly what you’re looking for, and we can find the perfect business car lease deal for you.
Customised leasing plans for businesses
Your business, your vehicle lease. Choosing a business contract hire deal with Dick Lovett is simple and flexible – we offer customised leasing plans for any business. We have low initial rental fees and fixed rentals for the length of your agreement, and have flexible contract durations. Do you need two years, three years, even four?
Maintenance and servicing plans can also be included.
Access to premium EV brands
Dick Lovett can deliver the very best electric vehicles for fleets. Our dealerships have access to genuinely premium EV brands – including BMW, MINI, and Porsche.
Drive one of the latest all-electric models with a business lease, such as the BMW iX1 or the MINI Countryman Electric.
EVs vs Hybrid Vehicles for Fleets
We’ve focused mainly on electric vehicles for fleets in this guide, but fleet managers will be aware of another option. Assuming that the decision has already been made to turn away from petrol and diesel vehicles, a business could consider using hybrid vehicles.
Both types of vehicle have their benefits, but what’s the best choice for your business? Let’s take a more detailed look at hybrid vs electric fleets, while you can read more about choosing between a hybrid or an electric car here.
Environmental Impact
For businesses genuinely aiming to minimise the environmental impact of its fleet vehicles, there’s a clear winner in the hybrid vs electric fleets debate – although both types of vehicle are more environmentally friendly than an ICE vehicle.
Emissions comparison between EVs and hybrids
An electric vehicle offers the cleanest motoring option, with zero tailpipe emissions. In comparison, a hybrid vehicle will produce CO2 emissions because it has a petrol engine and only uses battery power for shorter distances. A hybrid car is still kinder to the environment compared to petrol or diesel vehicles, however.
CO2 emissions on hybrid vehicles vary depending on the model and size, so check with the dealership providing the fleet vehicles.
Long-term sustainability
There’s no question that electric cars are the future of motoring – we’re so far down the road that there’s no turning back. While hybrid and PHEV cars provide a halfway step between fossil fuel vehicles and electric vehicles, with the assurance of an engine supporting a battery – EVs offer an all-round cheaper, more sustainable option.
Though subject to change in the future, sales of new hybrid cars are scheduled to be phased out for 2035.
Should I Get an EV Fleet?
Switching to EVs and embracing fleet vehicle electrification can be an excellent choice for many reasons. With electric vehicles becoming increasingly commonplace on UK roads, and the range of available models growing annually, there’s never been a better time to make that switch. The production of all-electric vehicles isn’t going to slow down any time soon – if at all.
Nevertheless, if you’re a business leader or fleet manager asking ‘should I get an EV fleet?’ there are some practical factors to consider – in addition to the obvious environmental benefits.
Factors to Consider
Before deciding to switch to business electric car fleets, some of the important factors to consider include:
Fleet size and usage patterns
The size of the fleet is an obvious factor. How many EVs do you need? Is it less than 10, for certain employees only? Or do you need a fleet of 100+ electric vehicles for a wider team?
Think about the likely usage of the vehicles. The type of business plays an enormous part in this. If the business has employees on the road on a daily basis, making long journeys nationwide, range and mileage capacity is going to be a critical factor in the decision making process. If employees will mainly use their company EVs for local driving, and perhaps only occasionally during working hours, a business is more likely to consider EVs with a more modest range.
Availability of charging infrastructure
A business with an EV fleet needs access to a charging infrastructure. Using public charging stations when out and about on the road is a necessity if the battery needs topping up but it’s not an ideal solution. A business needs to have charging points at its workplace, so employees can recharge at their convenience.
Case Studies of Businesses Using EV Fleets
From small to medium businesses to huge national companies, more and more businesses are using electric vehicles for fleets.
As featured above, here are some examples of businesses using EV fleets include:
Royal Mail has been using electric vans since 2017 and in January 2025 deployed its 6,000th EV, used for deliveries and collections. The company says it plans to be net zero by 2040.
BT Group has a fleet of all-electric commercial vehicles, confirming an order of 3,500 EVs in January 2025. The group is on track to scale up to almost 8,000 electric vehicles by 2026.
Vehicle breakdown service the AA added 30 all-electric vehicles and PHEVs – 15 of each type – to its roadside fleet in December 2024, the start of a UK-wide trial.
Amazon, B&Q, Anglian Water and Domino’s are among other high-profile companies to have recently introduced or expanded their electric vehicle fleets.
