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Electric Vehicles, Infrastructure and Business 2024
The transition to electric vehicles (EVs) is gaining traction in the UK, with businesses increasingly looking to reduce their carbon footprint and take advantage of the cost savings. Here Pegasus Couriers director, Phil West, explores various aspects related to electric vehicle demand, EV infrastructure, challenges and opportunities in this market.
The Demand for Electric Vehicles in the UK
The demand for electric vehicles in the UK has increased significantly, leading to a shift in consumer preferences and an urgent need for infrastructure upgrades.
This is especially true for the courier industry, with electric delivery vans becoming increasingly popular. Companies are adopting these vehicles due to their environmental benefits and cost savings. However, some challenges are still associated with using them, such as limited range and charging time. Despite this, some companies have invested millions in upgrading their fleet to electric vehicles. Several companies have upgraded their fleets, while other businesses plan to invest more as sustainability grows.
While there is a need for businesses to make the switch, there is also a need for more public charging points. Nevertheless, the impact of electric vehicles on the courier and logistics industry is undeniable, as they have enabled companies to reduce their carbon emissions significantly.
The Importance of EV Infrastructure for Businesses
Adequate charging capabilities are essential for businesses to ensure economic growth and success. This is particularly true in the courier and logistics industry, as the benefits of using electric vehicles, such as cost-effectiveness and reduced emissions, are making them increasingly popular.
Government incentives for electric vehicles in the courier industry have also helped to spur their adoption, but without adequate charging infrastructure, these incentives become moot. The UK government has taken steps towards rolling out charging infrastructure for electric vehicles across the country, with plans to install more than 300 000 charge points by 2030.
The impact of this rollout on the adoption of electric vehicles in the UK is undeniable; more businesses are likely to invest in electric vehicles if they know there will be sufficient access to charging ports. This will be especially beneficial for companies within the courier industry that require a large fleet of vehicles with reliable power sources.
Businesses in the EV Market
As the demand rises, there are increasing opportunities for companies in the UK to capitalise on the growing market.
The UK government is committed to banning sales of new petrol and diesel cars and vans by 2035, creating a surge in demand for EVs. This provides a potential business opportunity in manufacturing EVs and providing services such as charging infrastructure, maintenance, repair and insurance.
Companies may also benefit from research into battery technology and other related components. A prime example is Jaguar Land Rover-owner Tata, who announced a £4 billion electric car battery factory in the UK.
Government Initiatives and EV Infrastructure
To facilitate the growth of the electric vehicle market, governments are taking steps to support the development of necessary infrastructure. This includes initiatives such as grants and tax incentives for businesses as well as public funding for large-scale projects.
Accounting giant PwC even punted the electric vehicle market as having tremendous growth potential and a good investment. One report states that by 2026 electric vehicles are expected to account for a fifth of vehicle sales across the UK.
Government agencies such as Innovate UK have established specific funding streams to support research into developing new infrastructure-related technologies. The Office for Zero Emission Vehicles (OZEV) also provides financial incentives and grants to businesses that invest in charging infrastructure.
Electric Vehicles and the Future
It is difficult to predict the future of electric vehicles in this sector; however, adequate infrastructure must be present before any significant shift can occur. A successful charging network requires adequate planning and coordination between all stakeholders to ensure its long-term success and viability. With the continued efforts of both public and private sector organisations in this area, it is expected that the number of EVs on UK roads will continue to increase over time. In my view, the transport and logistics sectors will only give their unwavering support to EV’s once manufacturers increase the battery’s duration and when the market stabilises, leading to more sustainable prices.
Government initiatives and support are vital in providing these changes and will hopefully continue as more businesses investigate adopting EVs into their fleets.
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