Report

Running out of road

Think tank: Social Market Foundation

Author(s): Jake Shepherd; Gideon Salutin; Danila Patti

July 29, 2024

This report from UK think tank the Social Market Foundation looks at navigating the route to decarbonised business fleets.

Electric vehicles are at the forefront of the green transition, improving air quality and promoting cleaner, safer roads, but much of the policy discussion focuses on consumer uptake.

This report looks at electric vehicle adoption among business fleets, and the need for better fast-charging infrastructure to promote uptake. Business fleets are comprised of vehicles used for commercial purposes, like vans and trucks, which emit more pollutants than the average car. Business uptake of EVs is on the rise, but fleet numbers are lagging behind the uptake of passenger cars. Business-oriented EV policies have supported this growth, but they are scheduled to end in 2025. Without extensions or replacements, businesses face the risk of increased costs and reduced incentives – which may lead to slower adoption. High upfront costs are an obstacle, but the main causes for concern among businesses we spoke with were around insufficient charging infrastructure and unreliable battery life.

To address these concerns, the government should extend key EV subsidies to ensure that adoption in the commercial sector does not plummet. Following Norway’s example, it should also expedite funding to the rollout of EV charging infrastructure to ensure supply continues to meet demand. But until battery technology improves, any new EV policies should be directed to consumer subsidies, which are likely to be most impactful for encouraging widespread adoption