Dec 08, 2022

Company Subsidies For Electric Vehicles Explained

If you're a business owner who relies upon mobile assets such as electric company vehicles for the transportation, collection or receiving of goods and services, you may be entitled to subsidies involving charging infrastructure or tax advantages.

What Are Company Subsidies?

A Subsidy (or grant, initiative) is financial assistance given directly to a company by the government for a willingness to adopt new technologies or approaches that they wish to encourage.

EV Subsidies

The government has been very vocal in their championing of reduced emission technologies, such as electric vehicles and their futuristic, cleaner road potential, and are willing to back up their interests in the form of cost reduction or incentive regarding electric technology.

Types Of EV Subsidies Available

Up until fairly recently the UK government ran a £300 million Incentive scheme for the purchasing of new business and private electric vehicles. However, the Government has now decided to pull the plug on this subsidy, choosing to redirect the vast majority of funding into the area of EV charging points and wider infrastructure.

With that being said, some financial incentives for companies to use electric car’s still exist, but in the form of tax or congestion reduction offers rather than grants.

Company Car Tax

Sometimes known as Benefit in Kind tax, company car tax is significantly reduced for vehicles containing electric or hybrid engines.

This type of tax is dependent on the levels of vehicular emissions, therefore is advantageous for EV models, also company BiK tax can only be applied to employee vehicles that are used full time (not just in traditional working hours).

Ultra Low Emission Zones (ULEZ)

Very beneficial for fleet managers or asset supervisors, as their drivers will not be subjected to environmental congestion fees in Ultra Low Emission Zones.

OZEV Workplace charging Scheme (WCS)

This subsidy can reduce the cost of installing workplace charging points for electric vehicles up to the total of £14,000 or £350 for every socket (up to 40). This is again advantageous for fleet vehicle operations.

How Else Can You Save Your Fleet Money?

Another way you can make very impressive savings for a fleet vehicle operation is to implement vehicle tracking systems.

This simple addition to any vehicle, electric or otherwise, can boost overall performance while cutting down financial outgoings.

Fleetsmart Telematics

Telematics technology is the use of telecommunications and informatics to monitor an asset, eg. company vehicles location , safety metrics and engine diagnostics in real time. The vehicle applicatory possibilities of Telematics make them a popular choice of vehicle managers to analyse, and subsequently optimise their business’ productivity.

How Do Our Telematics Work?

Telematics systems gather GPS tracking and vehicle specific data to transfer via means including- cellular network, satellite communication, mobile data, and GPRS to a central server. The data collated is then analysed and transcribed into specific metrics for the vehicle manager or owner to interpret via our Fleetsmart app or website.

Reduces Fuel Costs

Telematics help optimise operational expenditure by improving efficiency of routing. Superior vehicle tracking leads to improved routing by avoiding congestion/accidents which in turn streamlines journey travel times, ultimately providing better fuel economy by reducing how much fuel is needed for any one journey.

Proactive Preventative Maintenance

A Telematics system can also gauge potential maintenance needs and allow for repair time to be allocated in advance rather than cut into productivity hours.

Often fleet maintenance such as oil changes are set by maintenance schedules; however early detection of other issues, can lead to preventative maintenance, this can save time and money. Some Telematics services recognise vehicle trouble codes and can alert fleet management in real time and help ensure drivers are alerted to new problems.

Cut down on Idling

The implementation of telematics software data collection can increase vehicle operation productivity by giving accurate information on specific times when a vehicle's engine may be on, but not driving. Journey reports enable many fleet managers to observe and streamline excessive idling patterns by better educating their drivers, a major benefit for a business as huge savings could be made.

Saving Money With Fleetsmart

Here at Fleetsmart we are the UK’s #1 vehicle tracking app and system. Fleetsmart offer a range of the latest Telematics and dash cam technology at extremely cost effective prices with scalable options starting from just £6.95 per vehicle per month.

With a clear multitude of money saving reasons, especially when it comes to insurance premiums, now might be the time to implement telematics to your motorbike and upgrade your vehicle.