Source Fleet Whitepaper 2026

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Electrifying UK Fleet Operations Challenges, Strategies, and the 2035 Deadline

‘The need for clear, actionable strategies

3 Introduction 4 Policy Drivers and Market Forces Accelerating Fleet Electrification 5 Fleet electrification is governed by fixed deadlines, not flexible ambitions. 6 Financial Hurdles and Making the Business Case 8 Charging Infrastructure: Depot, Public, and Home Solutions 13 Operational Changes and Fleet Management in the EV Era 17 Pioneering Fleets: Lessons from Early Adopters 20 Conclusion: Gearing Up for a Smooth Transition 22 Sources

to transition to cleaner fleets is

pressing if the UK is to hit its emissions targets on time’

2

Electrifying UK Fleet Operations: Challenges, Strategies, and the 2035 Deadline

25% 11% UK fleets with a quarter or fewer vehicles electrified UK fleets yet to introduce a single electric vehicle

Introduction

The Road to 2035 and why fleets need to start now…

Many UK fleets are still in early stages of this journey. A recent survey by Fleet News of 200 fleet managers found nearly a third of UK fleets have only 25% or fewer vehicles electrified , and 11% have yet to introduce any EVs [7] . This lag is evident across sectors, while some delivery and retail fleets lead the way, other industries remain hesitant [8] . The need for clear, actionable strategies to transition to cleaner fleets is pressing if the UK is to hit its emissions targets on time [9] . Crucially, fleet electrification is a complex, cross-functional effort that touches operations, finance, procurement, and HR. Those companies that begin planning early secure vital “quick wins” (e.g. converting the easiest routes or vehicles first) to prove the business case and convince any internal skeptics [10] . By contrast, those who delay risk facing “more challenging decisions with limited, untested information and fewer options available” down the road [11] . Early movers consistently report smoother transitions and better commercial outcomes, whereas procrastinators may find themselves scrambling to meet deadlines with suboptimal solutions.

Fleet operators across the UK are under increasing pressure to decarbonise their vehicle fleets in line with national climate goals and regulations. The UK Government’s mandate to end the sale of new petrol and diesel cars/vans by 2030 (and hybrids by 2035) has set a clear finish line for the transition to electric vehicles (EVs) [2] . An extension allowing some diesel van sales until 2035 gave parts of the industry a sigh of relief , yet it also risks a false sense of security [3][4] . In reality, 2035 isn’t far away at all given typical vehicle replacement cycles and the lead time needed to plan and implement an EV transition, fleet managers cannot afford to wait . As quoted by Alice Aprile-Smith, Head of Partnerships and Business Development at Source in referencing the ZEV Mandate , pushing challenges into the future could make them “more expensive and complex to resolve” , and the fleets that thrive will be those who use this time to plan thoroughly, build partnerships, and lay robust foundations now [5][2] . In short, the question is no longer if fleets will electrify, but how smoothly each organization can navigate the journey , and the journey must start today [6] .

‘Early movers consistently report smoother

transitions and better commercial outcomes’

3

Electrifying UK Fleet Operations: Challenges, Strategies, and the 2035 Deadline

Policy Drivers and Market Forces Accelerating Fleet Electrification

Several powerful drivers are propelling UK fleets toward electrification.

company-car tax incentives that make EVs financially appealing for employees [14] . The van sector is catching up more slowly, electric light commercial vehicles (LCVs) made up only ~7% of new van registrations in 2023 [15] , but this is expected to rise steadily as more models enter the market and policies like the ZEV mandate kick in. Government funding and incentives are also crucial levers. Fleets have benefitted from programs like the Plug-in Vehicle Grants, which reduce the upfront cost of EVs. Notably, the Plug-in Van Grant offering up to £2,500 for small vans and £5,000 for large vans has been extended until at least 2027 [16] , giving operators more certainty and support for purchasing electric vans. For larger trucks, grants up to £25,000 are in place [17] . On the infrastructure side, a new Depot Charging Scheme launched in 2025 will fund 75% of charge point installation costs (capped at £1 million) for fleet depots [18] . This scheme, available to both public and private fleets, is a major boost to help cover the costly electrical upgrades often needed at depots. The window is time-limited (applications close by late 2025, with projects to be completed by March 2026) [19] , so fleet operators are urged to act quickly. Beyond grants, tax policy is another driver: for instance, battery

First is the regulatory mandate: the UK’s 2030/2035 ICE vehicle phase-out has set an immovable deadline that forces long-term planning. In April 2025, the government reaffirmed the 2030 new petrol/ diesel ban, underscoring its commitment to this transition [12] . The introduction of a Zero Emission Vehicle

EV Adoption Gap: Cars vs Vans EV Adop ti on Gap: Cars vs Vans (%)

25

25%

7%

0

Cars

Vans

(ZEV) mandate from 2024 will require automakers to sell an increasing share of EVs each year, which in turn should improve vehicle availability and model variety for fleet buyers. In parallel, many local authorities have declared climate emergencies and introduced measures like Clean Air Zones, pushing organizations to adopt zero-emission vehicles or face penalties. Private sector momentum is growing too: for example, one in four new cars sold in the UK is now fully electric (as of late 2025) [13] , thanks in part to attractive

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Electrifying UK Fleet Operations: Challenges, Strategies, and the 2035 Deadline

Policy Drivers and Market Forces Accelerating Fleet Electrification (Continued)

committed to electrify its 12,000-vehicle fleet by 2025 as part of a net-zero pledge [21] ) and are moving faster than government mandates. Logistics and delivery companies tout electric fleets as a competitive differentiator for green- minded clients. There is also growing investor scrutiny of fleet emissions as part of ESG (Environmental, Social, Governance) performance. In short, the direction of travel is clear – economic signals and policy signals are aligning toward EVs. Fleet managers who recognise these trends are starting to plan accordingly, knowing that early action can yield commercial advantages in the near term and ensure compliance in the long term.

electric company cars currently enjoy very low Benefit-in-Kind tax rates, spurring many businesses to electrify their company car pools [14] . In fact, the majority of new EV sales in 2025 are through company car and salary sacrifice schemes that leverage these tax incentives [20] . All these measures – grants, mandates, tax breaks – point to a future where electrification is not only environmentally responsible but financially and operationally advantageous. Finally, corporate sustainability commitments and consumer expectations are adding market pressure. Major firms have set their own targets (e.g. Centrica, owner of British Gas,

Fleet electrification is governed by fixed deadlines, not flexible ambitions.

2035 End of new hybrid vehicle sales

2030 End of new petrol/diesel cars and vans

2025 Depot Charging Scheme & grant extensions

2024 ZEV mandate begins

5

Electrifying UK Fleet Operations: Challenges, Strategies, and the 2035 Deadline

Financial Hurdles and Making the Business Case

Upfront cost remains one of the most significant hurdles in fleet electrification.

Total Cost of Ownership Breakdown (Indexed) Total Cost of Ownership Breakdown (Indexed)

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

5

20

20

Electric vehicles still typically carry a higher purchase price than their diesel or petrol counterparts, especially for vans and trucks. Recent industry research confirms that cost, not range anxiety, is now the number-one barrier to choosing an EV for fleets and drivers alike [22] . This is not surprising: when comparing list prices, an electric van can be many thousands of pounds more expensive

15 10

35

55

40

than an equivalent diesel van. Likewise, installing charging infrastructure at depots or workplaces entails substantial capital expenditure. Many operators report struggling to quantify and justify the large upfront investment needed for chargers and grid upgrades [23] . In one government-commissioned survey of van fleets, even

10 12 14 16 Cost per 100 Miles: Electric vs Diesel (£) Cost per Mile: Electric vs Diesel (£)

Diesel (Index)

Electric (Index)

Purchase

Fuel/Energy

Maintenance

Tax & incentives

13.5

those aware of the available OZEV grants said the cost of major power supply upgrades was a major barrier , and they found it difficult to make the financial case to their boards for such spending [23] . Fleet decision-makers often operate within tight budget cycles, where capital budgets are planned 1–2 years in advance [24] . This means that to fund EVs and infrastructure in, say, 2025–2026, the business case needs to be built now and approvals lined up well ahead of time.

0 2 4 6 8

4.5

Electric (off-peak/home)

Diesel van

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Electrifying UK Fleet Operations: Challenges, Strategies, and the 2035 Deadline

Financial Hurdles and Making the Business Case (Continued)

The good news is that while sticker prices are higher, the total cost of ownership (TCO) for electric vehicles can be favorable in many use cases, but it requires a shift in perspective. Over the vehicle’s life, fuel and maintenance savings can outweigh the upfront premium. Electricity (especially off-peak) is significantly cheaper per mile than diesel. For instance, charging an EV on a typical overnight tariff (~14p/kWh) means driving 100 miles can cost only around £4–5 in electricity , which equates to roughly £0.02 per mile [25] . By contrast, an efficient diesel van might burn £12–£15 of fuel per 100 miles (around £0.12–£0.15 per mile). Maintenance costs are also lower EVs don’t need oil changes, have fewer moving parts, and often experience less brake wear due to regenerative braking. These operational savings, however, accrue over time and may not sway fleets that focus narrowly on year-one costs. Notably, only about 51% of fleets are currently using a TCO model when evaluating vehicle purchases ; the rest may be more focused on upfront costs [26] . Closing this “TCO understanding” gap is crucial to making the business case for EVs. Some fleets are now modeling scenarios that include fuel savings, avoided congestion/Clean Air Zone charges, and even potential revenue from vehicle-to-grid services in the future. Residual values are a related financial consideration. The used EV market in the UK has seen some volatility recently, with a surge of ex-lease EVs causing resale values to dip in 2023. This has made leasing companies cautious and can affect lease rates for fleets. However, as the market matures and more second-hand buyers enter (helped by initiatives to boost the used EV market), residual values should stabilise. The Government’s new Electric Car Grant (launched in 2025) and

efforts to stimulate demand for used EVs aim to support this [14] [27] . For fleet managers, it’s important to factor in conservative assumptions on residuals or consider operating leases where the risk is shared. Crucially, financial support schemes can tilt the economics in favor of electrification if leveraged effectively. We mentioned the Plug-in Van Grant and Depot Charging Grant above. Additionally, the Government offers a Workplace Charging Scheme that provides £350 per charging socket for businesses installing employee/work fleet chargers (up to 40 sockets) [28] . There are also incentives for electric trucks, infrastructure tax relief (the 130% first-year capital “super-deduction” was used by some firms to offset EV infrastructure costs [29] ), and no Vehicle Excise Duty for zero-emission vehicles until 2025. Savvy fleet operators are layering these incentives into their financial models. They are also negotiating volume discounts with manufacturers and seeking innovative financing (e.g. leases or battery-as-a-service models) to reduce upfront costs. In short, while the initial price tag of electrification is high, the smart application of incentives and a holistic view of lifetime costs can make the investment not only palatable but compelling . Developing realistic total cost models , accounting for vehicle price, grants, energy costs, maintenance, tax breaks, and residuals, is a near-term priority for fleet finance managers [30] .

Use of Total Cost of Ownership (TCO) Modelling

49%

51%

% of Fleets;

Not using TCO models Using TCO models

‘...only about 51% of fleets are currently using a TCO model when evaluating vehicle purchases’

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Electrifying UK Fleet Operations: Challenges, Strategies, and the 2035 Deadline

Charging Infrastructure: Depot, Public, and Home Solutions

One of the most daunting aspects of fleet electrification is powering the vehicles.

cabling, and coordination with Distribution Network Operators (DNOs), often taking 12–24 months and significant expense. Every additional megawatt of capacity can carry a hefty price tag. One UK local authority noted the cost of grid upgrades for fleet charging was “large” for virtually every site they assessed. These challenges are not unique to councils; a private delivery fleet faces the same reality when electrifying a warehouse or logistics depot. Some operators are exploring on-site generation or storage (solar panels plus battery storage) to mitigate grid constraints. In rural areas with weak grids, installing a large battery at the depot to charge from the grid slowly and then fast-charge vehicles from the battery is an emerging solution to avoid prohibitively expensive grid works. Space and layout at depots also need rethinking. Parking lots may need reconfiguration to accommodate charging bays, particularly for larger commercial vehicles that require more room to maneuver and park while connected. Fleets must plan not only for initial charger installation but also future expansion. It’s wise to pre-wire for more chargers than initially needed, anticipating that by 2030 a much greater share of the fleet will be electric. Depot managers also have to implement energy management systems to avoid overloading circuits.

Fleets must ensure their EVs have reliable charging access wherever the duty cycle requires – whether that’s overnight in a depot, during a shift on the road, or at an employee’s home. Establishing a robust charging ecosystem involves a combination of solutions, each with its own challenges and best practices. Depot Charging (On-Site): For many fleets, depot-based charging is the backbone of operations. If vehicles routinely return to a base (or parking yard) at the end of a shift, installing a network of chargers there allows for convenient overnight charging using cheaper off-peak electricity. This approach, often using moderate- power AC chargers (7–22 kW), can ensure every vehicle starts the day with a full battery. However, deploying depot charging at scale is far from trivial. Most depots were never designed for the high electrical loads that dozens of EV chargers demand. Fleet operators consistently cite grid connection upgrades as a pain point: upgrading supply can require new substations,

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Electrifying UK Fleet Operations: Challenges, Strategies, and the 2035 Deadline

Charging Infrastructure: Depot, Public, and Home Solutions (Continued)

Techniques like load balancing (distributing available power across vehicles) and scheduling (staggering charging times or prioritizing vehicles that need to depart first) become important to optimize limited power supply. In the near term, many fleets start with a pilot of a few depot chargers

plans to add tens of thousands more in the next few years. However, coverage can still be uneven. Fleets operating in remote or rural areas report gaps in fast-charger availability along their routes. Even in urban areas, finding an available rapid charger when needed is not guaranteed during peak times. Fleet managers worry about reliability and uptime of public chargers as well. Early experiences have been mixed: it’s not uncommon to encounter units that are out-of-order or occupied. Research with UK fleets found concerns that public charge points “may not be in working order” or may have queues, directly impacting fleet productivity. The government recognizes this and has signaled plans to enforce 99% uptime requirements on major charging networks, which should dramatically improve reliability in the coming years. In the interim, some fleets mitigate risk by using apps and telematics that show real-time charger status and by always having contingency plans (e.g. an alternate charging site or a buffer of extra range).

to gain experience. Over the mid-term, scaling that up to cover entire fleets will require careful electrical engineering and significant capital investment. According to one industry survey, 71% of UK van fleets were planning to invest in depot charge points in 2023 , underscoring that most organizations see on-site charging as essential [37] . At the same time, 29% had no such plans, often due to barriers like lack of site ownership, high cost, or uncertainty, these fleets will need alternative strategies or risk falling behind [38] . Public On-Route Charging: No matter how much depot infrastructure is built, most fleets will also rely on the public charging network to some degree. Field service vehicles may need a daytime top-up to complete all their calls, parcel couriers might exceed their depot-charge range on busy days, and fleets without a fixed base (or those whose drivers take vehicles home) might depend heavily on public chargers. The UK’s public charging network is rapidly growing, as of mid-2025 there were over 85,000 public charge points across the country [13] , with government and industry

Fleet Inten ti ons for Depot Charging (%) Fleet Intentions for Depot Charging (%)

0 10 20 30 40 50 60 70 80 90 100

71 %

29%

Planning depot c h arging

No current plans

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Electrifying UK Fleet Operations: Challenges, Strategies, and the 2035 Deadline

Charging Infrastructure: Depot, Public, and Home Solutions (Continued)

Another practical issue is that many public charging sites are designed for private cars, not commercial vans or trucks. Fleet drivers have found that parking large vans at some public chargers is problematic , bays might be too small or difficult to access with a long wheelbase vehicle. One study noted sites that “may not have space suitable for large vans,” leading some fleet users to detour to truck stops or motorway service stations that better accommodate bigger vehicles. This is prompting calls for new fleet-oriented charging hubs with pull-through bays and extra room for delivery vans, minibuses, and lorries. By 2030, we expect to see many more such hubs (some possibly built by forward-thinking local authorities or consortiums of businesses), but fleet operators should advocate now for charging infrastructure that meets their needs. Encouragingly, charge point operators are seeking input

on optimal locations, and this is where early-moving fleets can gain an edge . Right now, CPOs are actively looking for anchor customers when planning new charging hubs , meaning a fleet that commits usage can influence where infrastructure gets built (e.g. near their depot or along their routes) [44] . Forward-thinking fleets are partnering with charging providers in this way, essentially co-locating infrastructure to ensure operational coverage. They are also negotiating fleet-specific charging contracts. As Alice Aprile-Smith of Source EV notes, early-planning fleets are securing better commercial deals on public charging, including volume-based discounts and fixed-rate agreements, that may not be available later as the market matures [45] . This window for favorable terms won’t last forever; as EV adoption accelerates, the negotiating power will shift toward the charging providers and prime locations will be snapped up [46] . Fleets that engage in the next 1–2 years can lock in advantageous charging rates and help shape the public network to their benefit. The cost of public charging is a double-edged sword. On one hand, the ability to rapidly refuel an EV in 20–40 minutes (with a high-power DC charger) is a game-changer for keeping vehicles on the move. On the other hand, public rapid charging is significantly more expensive per unit of energy than depot or home charging. Commercial fast charging providers not only charge a premium for the convenience but also must apply 20% VAT (whereas electricity used at home or depot incurs only 5% VAT). This tax discrepancy alone adds around 5-10 pence per kWh to public charging costs. It’s no surprise that 85% of EV drivers believe public charging is too costly at present [49] . Fleet managers worry that if their drivers rely

Charging Costs by Location (£) Charging Costs by Location

0.8

0.75

0.7

0.6

0.5

0.45

0.4

0.3

0.2

0.14

0.1

0

Depot / Home

Public AC

Public Rapid DC

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Electrifying UK Fleet Operations: Challenges, Strategies, and the 2035 Deadline

Charging Infrastructure: Depot, Public, and Home Solutions (Continued)

Home and “Near-Home” Charging: A significant portion of fleet vehicles are not tied to a depot at night, instead, they are taken home by employees (this is common for service engineers, inspectors, sales reps, etc.), or they start from home in the mornings. Enabling these drivers to charge at home can be highly advantageous: home charging is usually the cheapest and most convenient option, essentially turning every driveway into a “mini depot.” However, the UK has an infamous challenge in this regard: about one-third of households have no off-street parking, making at-home EV charging tricky. Fleet operators have found that “charging at home is not always possible as the employee may not be able to have a wall box at their property” due to physical or ownership constraints. Many British homes are flats or terraced houses with only on-street parking, where running a charging cable is impractical or prohibited. Even among those with a driveway, some may be unwilling to dedicate the space to a van (leaving their personal car on the street). According to one fleet industry report, around 40% of drivers either cannot or will not charge an employer’s vehicle at home , underscoring how significant this limitation is [53] . For the near term, fleets are identifying which drivers can reliably home- charge and prioritizing EV deployment to those individuals. Employees with a garage or driveway are prime candidates to be early EV adopters for the fleet, since they can take full advantage of cheap night-time power. For those who don’t have this option, alternative arrangements must be made, and this is fostering creative solutions.

heavily on public charge points, it could erode much of the fuel savings that justify going electric. The industry is lobbying for VAT equalization to 5%, which would immediately cut public charging prices for businesses and individuals alike. In the meantime, best practice is to use public rapid charging strategically , essentially as a backup or range extender, not the primary source of energy. Fleets are encouraging drivers

to do most charging during cheaper times (overnight at depot or home), and use rapid chargers only when necessary during a shift. Some have also negotiated corporate accounts or memberships with charging networks to get better kWh rates. Innovative solutions are emerging too: the Association of Fleet Professionals (AFP) has even launched a platform

to connect organizations that have surplus charging capacity with those that need it. For example, a bus company with high- power chargers might let a delivery fleet use them in off-hours. A notable case is First Bus , which now allows other local fleets to use its depot’s 150 kW chargers during the day when its buses are out on routes [51] . Such sharing agreements can create semi-private charging hubs that benefit all parties and improve charger utilization. Over time, a more interconnected ecosystem of shared, public, and private charging options will help fleets electrify without each organization shouldering the full infrastructure burden alone.

One emerging concept is “virtual home charging.” This means finding a convenient overnight charging solution near

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Electrifying UK Fleet Operations: Challenges, Strategies, and the 2035 Deadline

Charging Infrastructure: Depot, Public, and Home Solutions (Continued)

the employee’s home, even if not at the home itself. For example, a company might partner with a local business or public car park that has chargers, allowing their staff to park and charge there overnight. Centrica (British Gas) reported using this approach for engineers who couldn’t install a home charger: they arranged for some to charge at local depots or even at supermarket parking lots outfitted with chargers . Similarly, an employee might use a nearby community charging hub , some towns are planning hubs in residential areas where multiple EV drivers (including fleet vehicles) can plug in overnight. The UK government is also seeding innovation here: in mid-2025, it announced a £25 million fund for technologies like curbside “cable gulley” systems that allow a charging cable to be safely run under the pavement to an on-street parked car. If widely deployed, such solutions could enable many more urban drivers to access home-rate charging even without a private driveway. Fleet operators should stay abreast of these pilots, as they could unlock home charging for more of their staff by the late 2020s. Another key aspect is reimbursing employees for home charging costs . When drivers charge a work vehicle at home, the company needs a fair and easy method to pay for the electricity used. Some fleets have addressed this by installing smart home charge points that can meter the energy used for the company vehicle separately, the company then pays that portion of the employee’s bill directly. Others use simple expense claims, e.g. paying a fixed pence-per-mile rate to cover charging (similar to how personal car mileage is reimbursed). There are also specialist services and apps that automate tracking of EV charging sessions and facilitate

reimbursement. Whichever method is chosen, it’s important to communicate clearly with employees and remove any perceived hassle of charging at home. Fleet managers report that if home charging is cumbersome or costs drivers money out-of-pocket, it undermines employee buy-in. On the flip side, when done right, home charging can save fleets a lot of money, as noted earlier, domestic off-peak electricity can yield a fuel cost equivalent of just 2 pence per mile [25] , a fraction of what petrol or even public charging costs. Thus, encouraging home charging (where feasible) aligns the interests of both the employer and the employee: the driver gets the convenience of starting each day with a “full tank” at home, and the fleet benefits from minimal energy costs. In summary, building a holistic charging strategy is mission- critical for fleet electrification. The optimal mix will vary: some fleets with central depots might satisfy 80% of charging needs on-site and use public chargers for occasional top-ups. Others with dispersed operations might rely heavily on public networks and home charging, with little depot infrastructure at all. There is no one-size-fits-all, so fleets should pilot multiple approaches. Importantly, early partnerships can ease the way, whether it’s co-investing in depot infrastructure with a leasing partner, signing agreements with charge point operators for discounted public charging, or working with local councils to access dedicated fleet charging bays . By developing redundancy (multiple charging options) and flexibility in charging methods, fleets can ensure that no matter where a vehicle is or when it needs power, there is an option available to keep it moving.

‘...building a holistic charging strategy is mission- critical for fleet electrification.’

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Electrifying UK Fleet Operations: Challenges, Strategies, and the 2035 Deadline

Operational Changes and Fleet Management in the EV Era

Switching to an electric fleet is not just a change of vehicles, it’s a change of operations. From route planning to maintenance scheduling to driver behavior, fleet managers will need to adapt many practices to accommodate the realities of EVs.

The goal is to maintain (or improve) service levels and productivity while transitioning to zero-emission vehicles. This requires foresight, training, and sometimes a shift in mindset among staff. Vehicle Range and Suitability: A core concern is whether available electric models can perform all required tasks . In 2023–2025, some fleets have found that EV offerings, especially in the van segment, still come with limitations. For example, Perth & Kinross Council trialed electric vans and found their limited range made them “unfit for operational needs” on certain long rural routes – one van even had to be towed after its battery depleted en route [60] . This highlights a critical point: if a job regularly approaches or exceeds the range capability of current EVs (especially under heavy load or in cold weather), it’s not yet practical to assign an EV to that duty without adjustments. Many operators are taking a pragmatic approach in the near term: pair the right vehicle to the right route . Routes well within an EV’s range (say, <100 miles a day for a medium van) are targeted first for electrification, while the extreme outliers (e.g. a maintenance route that covers 200+ miles in a day in a rural area) might temporarily remain with an ICE

EV Suitability by Route Type (Indica ti ve) EV Suitability by Route Type (Indicative)

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85

0

10

20

30

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Suitability (0-100)

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Electrifying UK Fleet Operations: Challenges, Strategies, and the 2035 Deadline

Operational Changes and Fleet Management in the EV Era (Continued)

vehicle or a plug-in hybrid. Indeed, a government study found fleets that have adopted electric vans tend to do so for only part of their fleet , specifically, the parts of the business with shorter, consistent trips, whereas more variable or longer routes were left for diesel vehicles until EV technology improves [61][62] . By the late 2020s, this will likely change: EV ranges are steadily increasing and rapid charging networks expanding. We expect that by 2035, nearly every use case up to 7.5-tonne trucks will have a market-viable EV option available. In the meantime, fleet managers should continue to monitor vehicle technology developments (for instance, longer-range battery options, or the emergence of hydrogen fuel-cell trucks for very long-range needs) and plan phased transitions , perhaps aiming to electrify 100% of cars and small vans by 2030, while having a separate strategy (and possibly later timeline) for heavier or more demanding vehicles. Another strategy for alleviating range concerns is to incorporate opportunity charging into operations. If an EV can’t quite complete a full day’s work on a single charge, scheduling a mid-shift charging stop (during a lunch break or between jobs) can extend its effective range. Many fleets instruct drivers to “top-up whenever convenient” rather than running the battery nearly empty. For example, if a worker takes a 30-minute break near a public fast charger, that time can be used to add 50+ miles of range. This requires some planning (ensuring there is a charger in the vicinity and that the schedule allows for the stop), but it can significantly boost daily utilization. Telematics data can help identify when and where vehicles are idle and might charge. Some fleets are also exploring en-route charging for specific applications,

much like some electric bus systems use ultra-fast chargers at endpoints to quickly re-energize. While not widespread for vans yet, this concept could translate in the future to, say, having a high-power charger at a logistics hub where vans make regular stops. The bottom line is that range constraints are manageable with smart planning: optimize routes, allow for charging breaks if needed, and communicate clearly with service schedulers or dispatchers about the new parameters (e.g. avoiding booking an EV on a job that is beyond its range unless a charging solution is in place). Scheduling and Downtime Management: Because charging takes longer than refueling, fleets must integrate charging into their daily schedules to avoid lost productivity. This is a cultural shift, instead of drivers “running on empty” and then spending 5 minutes at a fuel pump, EV drivers need to develop a habit of plugging in whenever they reasonably can. Fleets like Centrica (British Gas) have openly stated they prioritize minimizing vehicle downtime over minimizing electricity cost : they would rather a van charge at a more expensive public charger during the day than sit unusable waiting for a cheaper charge later. Some emerging tactics include rotating vehicles so that one can charge while a spare is used, staggering shifts or start times so not every vehicle needs a full charge at 7am, and equipping managers with remote state-of-charge monitoring to dispatch the right vehicle for each job. For instance, if a fleet management system shows that Van A has 80% charge and Van B only 30%, and a 50-mile job comes in, the dispatcher can assign Van A to ensure the task is completed without interruption. In larger fleets, software can automate much of this, scheduling

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Electrifying UK Fleet Operations: Challenges, Strategies, and the 2035 Deadline

Operational Changes and Fleet Management in the EV Era (Continued)

term, a number of organizations choose to outsource EV maintenance until their own staff gain experience. It’s also wise to stock certain EV-specific spare parts (like charging cables, brake fluid compatible with regenerative systems, etc.) and ensure workshops have the right tools, such as insulated gloves and hot sticks for high-voltage work. Another consideration is emergency response: local recovery providers or fire services may need awareness on handling EV incidents (like how to tow an EV or deal with a rare battery fire). While these events are infrequent, having a protocol in place adds resilience. By 2035, we can expect EV maintenance to be “business as usual” , but during this transition period, investing in workforce training and possibly offering incentives to retain EV-trained technicians will pay dividends for fleet reliability. Driver Training and Acceptance: People are at the heart of any fleet operation, and getting driver buy-in is pivotal. Drivers used to diesel vans or pool cars might have anxieties about range (so-called “range anxiety”) or simply be resistant to change. Early on, fleets have encountered issues like employees not plugging vehicles in overnight (due to forgetfulness or unfamiliarity), or inefficient driving that drains the battery faster than expected. To counter this, many organizations are providing training sessions for new EV drivers , covering practical topics like how to use various charge point types, efficient driving techniques (e.g. gentle acceleration, using regenerative braking effectively), and even safety topics like the quietness of EVs around pedestrians. Some councils and companies have created EV driver handbooks and internal forums for drivers to share

charging sessions for each vehicle during idle periods and even reserving public charging slots if possible in advance. In the next few years, we’ll see more smart fleet charging platforms that integrate with telematics and job scheduling, effectively treating battery level as another resource to be managed alongside fuel and driver hours. Maintenance and Technical Skills: EVs generally have lower routine maintenance needs (no oil changes, longer brake life, simpler transmissions), which is a positive for fleets, less downtime and potentially lower servicing costs. However, maintaining EVs requires new skills and safety precautions. High-voltage electrical systems mean fleet mechanics must be specially trained and certified to work on EVs. The UK is currently facing a potential shortage of EV-qualified technicians ; one analysis warned the country could be short 25,000 skilled EV mechanics by 2030 if training doesn’t ramp up [70][71] . As of 2021, only around 6.5% of the automotive service workforce was EV-trained [72] , though that percentage is rising now. Fleet operators should plan for how they will service and repair their electric vehicles. Some options include upskilling in-house technicians (through IMI-approved EV courses, for example), partnering with manufacturers or dealers for maintenance, or using mobile maintenance providers that specialize in EV fleets. In the near

‘People are at the heart of any fleet operation, and getting driver buy-in is pivotal.

15

Electrifying UK Fleet Operations: Challenges, Strategies, and the 2035 Deadline

Operational Changes and Fleet Management in the EV Era (Continued)

tips. It’s also effective to designate a few “EV champions” , drivers who are enthusiastic about the switch, to mentor others and lead by example. Generally, fleets report that initial skepticism often turns into appreciation once drivers experience EVs for a few weeks. The instant torque and smoother ride tend to win people over, and many drivers enjoy never having to visit petrol stations. Nonetheless, change management shouldn’t be underestimated: frequent communication, addressing concerns (for example, what to do if a planned charge stop is out of service), and highlighting success stories internally all help build acceptance. Starting the dialogue early is key; Alice Aprile-Smith advises fleet managers to “begin conversations with your drivers now” about EVs, identifying both the potential challenges and the internal champions who can help drive the transition [77][78] . After all, winning hearts and minds takes time, and drivers who understand the why and how of electrification are far more likely to support it actively. Maintaining Service Levels and Resilience: A final operational consideration is ensuring that the shift to EVs does not disrupt the critical services or business outputs that the fleet enables. Fleet managers should develop contingency plans for the new risks that electrification brings. For example, what is the plan if a depot’s power supply fails due to an outage? Some organizations are installing backup generators or onsite battery storage at key charging sites as a fail-safe. Others keep a small pool of spare vehicles (which could be ICE or hybrid) that can be deployed if a situation renders EVs temporarily unusable. In emergency services or other mission-critical fleets, redundancy is especially

crucial, you might maintain a few conventional vehicles for scenarios where EV charging is impossible (such as prolonged grid blackouts or in emergency response to remote areas with no charging). Additionally, close coordination with the facilities/energy management teams is a new aspect of fleet ops; monitoring transformer loads, scheduling maintenance for charging equipment, and getting alerts on any charger faults becomes part of keeping the fleet running. The fuel supply chain for your fleet is now the electrical grid, which introduces external dependencies and stakeholders (like the DNOs) that fleet managers historically didn’t deal with. Building relationships with these energy providers and having Service Level Agreements in place for infrastructure uptime can be very helpful. As one fleet publication put it, electrification requires “balancing immediate operational demands with long- term goals” – meaning fleet managers must simultaneously keep today’s operations on track while investing for a net-zero future. This balancing act is challenging but manageable with proper planning. The near-term period (next 1–2 years) is about pilot projects, learning, and ensuring early projects succeed so they can be scaled. By the mid-2030s, many of these operational adaptations, from driver routines to scheduling software, will have matured, and running an electric fleet will feel much like running a diesel fleet does today, but with lower emissions and (hopefully) lower costs.

‘...fleet managers must simultaneously keep today’s operations on track while investing for a net-zero future’

“begin conversations with your drivers now”

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Electrifying UK Fleet Operations: Challenges, Strategies, and the 2035 Deadline

Pioneering Fleets: Lessons from Early Adopters

While challenges abound, many UK fleets have already embarked on electrification and are demonstrating what’s possible through commitment and innovation. Their experiences provide valuable lessons and proof points for others.

nationwide rapid charging network on discounted terms [82] [83] , and it prioritized deploying EVs in urban areas first (where routes are shorter and air quality gains are most needed) [84] . An important takeaway from British Gas’s experience is the value of corporate resolve, by publicly setting a bold target and aligning it with the company’s net-zero mission, they drove internal urgency. They also learned from earlier setbacks: the firm had initially planned to electrify 10% of its fleet by 2017 but missed that target due to “shortcomings in charging infrastructure and technology at the time” [85] . Since then, improvements in vehicle range and charging, plus better planning, have put them on track. British Gas’ journey highlights that early attempts might not always succeed, but the landscape is rapidly improving. For fleets starting now, there are far more vehicles and infrastructure solutions available than even five years ago, making ambitious transitions more achievable. Another trailblazer is DPD UK , a major parcel delivery company. As of 2024, DPD had electrified one-third of its UK delivery fleet (~4,000 EVs) and set a goal to reduce its CO 2 emissions 46% by 2024 (vs 2020) [86][87] . DPD pursued a strategy of concentrating EV deployments in specific cities

British Gas (Centrica) 12,000 Total vehicles in fleet 100% Commitment to electric vehicles 3,000 Electric vans ordered in a single procurement

One high-profile example is British Gas (Centrica) , which operates one of the UK’s largest commercial fleets. In 2021, Centrica announced it would never buy another combustion engine vehicle , committing to electrify its 12,000-strong fleet by 2025 , five years ahead of the government’s 2030 deadline [21] . By mid-2022, it had ordered 3,000 electric Vivaro-e vans from Vauxhall, one of the largest EV van orders in UK history [21] . To support this aggressive rollout, British Gas recognized the importance of charging infrastructure for its workforce of field engineers. The company arranged to install home chargers for its engineers wherever possible , leveraging its own British Gas engineers to do the installs [81] . Where home charging wasn’t feasible, British Gas took a multi-pronged approach: it partnered with a public charging network (Osprey Charging) to give its drivers access to a

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Electrifying UK Fleet Operations: Challenges, Strategies, and the 2035 Deadline

Pioneering Fleets: Lessons from Early Adopters (Continued)

‘By focusing EV vans in urban centers, DPD maximized impact (zero-emission deliveries in dense areas) and ensured those vehicles had ample access to charging at depots or nearby fast chargers.‘

DPD UK ~4,000 Electric delivery vehicles in operation

We also see interesting examples in the public sector and service fleets . The Royal Mail has begun rolling out EVs for postal delivery, with plans for 5,500 EVs by 2025 and the creation of “Delivery Office of the Future” sites that are fully equipped with chargers. Police and emergency fleets are trialing EVs for suitable roles (like non-emergency vans

to create all-electric delivery areas. They launched initiatives like “Project Breathe” to establish 25 all-electric towns and cities by 2025 , starting with Oxford in 2021 and expanding to places like London, Manchester, and Edinburgh. By focusing EV vans in urban centers, DPD maximized impact (zero-emission deliveries in dense areas) and ensured those vehicles had ample access to charging at depots or nearby fast chargers. The company also invested heavily in its infrastructure: it committed £330 million to build new distribution centers equipped with EV charging facilities to support the growing electric fleet [88][89] . One practical lesson from DPD is the use of interim solutions, recognizing that not all routes can go electric immediately, DPD has transitioned the remainder of its diesel fleet to run on HVO biodiesel (a renewable fuel) to cut emissions by ~83% compared to regular diesel [90][91] . This dual approach (electrify what you can, clean up the rest with better fuel) provides a template for fleets with very large operations: you can start knocking out emissions now, even as you work towards a 100% EV future. DPD’s transparency about “harder challenges down the line” (like electrifying larger trucks or rural routes) is also instructive [92] . They acknowledge those will require continued innovation and partnership, underlining that fleet decarbonisation is an ongoing journey.

33% Of UK delivery fleet electrified £330m Investment in EV-enabled depots and infrastructure 25 All-electric towns and cities targeted by 2025

UK Local Authority Fleets 100% Cars and vans electrified (Leeds City Council) 300+ Vehicles electrified 2022 Full car and van electrification achieved

and detective vehicles), although pursuit vehicles remain a challenge due to performance requirements. And many local councils are quietly making progress:

for instance, Leeds City Council achieved 100%

electrification of its car and van pool (over 300 vehicles) by 2022, installing hundreds of charge points across its properties. These case studies consistently show that success comes from treating electrification as

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Electrifying UK Fleet Operations: Challenges, Strategies, and the 2035 Deadline

Pioneering Fleets: Lessons from Early Adopters (Continued)

‘The reputational boost of being an EV pioneer can be significant in an era where corporate responsibility is under the microscope.’

Lastly, early adopters highlight the commercial opportunities that an electric fleet can unlock. Companies with green fleets can win contracts or customers that prioritize sustainability. They also future-proof their operations against environmental regulations and fossil fuel price volatility. As one fleet manager put it, “Everyone needs to act now to lower carbon emissions... by increasing the speed at which we do this, we are leading from the front” [93] . The reputational boost of being an EV pioneer can be significant in an era where corporate responsibility is under the microscope.

a strategic program, not a casual procurement choice. Fleet leaders engage stakeholders early (finance, facilities, drivers, unions), pilot test vehicles to gather data, and iterate on their plans. They also often seek expert help, whether from EV consultants, energy companies, or government programs like Energy Saving Trust’s fleet reviews, to navigate unfamiliar terrain.

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Electrifying UK Fleet Operations: Challenges, Strategies, and the 2035 Deadline

Conclusion: Gearing Up for a Smooth Transition

Electrifying a fleet is undoubtedly a complex undertaking, but it is both achievable and ultimately inevitable .

to “plan thoroughly, secure strategic partnerships, and build robust foundations” [94] .

• Leverage the commercial advantages of being ahead. Right now, charge point providers and even vehicle manufacturers are eager to court fleet business. Fleets making moves in the next 1–2 years can influence infrastructure deployment (getting chargers where they need them) and lock in favorable energy/pricing deals [44][45] . These opportunities will diminish as the market matures and becomes crowded. Consider partnering with charging networks early to ensure your routes are covered and your costs are controlled. • Evaluate your current operations against EV capabilities. Do a route and range analysis to see which routes are EV-ready and which would need changes (or new solutions) to work [95] . Identify “low-hanging fruit”, e.g. vehicles with predictable, shorter routes or high fuel costs that make great candidates for early EV adoption. Simultaneously, pinpoint the tough cases (long haul routes, very heavy vehicles) and monitor emerging tech for those (like longer- range models or hydrogen options).

The next decade will see the majority of UK fleet vehicles switch to zero-emission propulsion, and the organizations that succeed will be those that plan ahead and embrace the transition proactively. Fleet managers today should view 2030/2035 not as distant dates to think about later, but as prompts for immediate action, because the groundwork laid now will determine whether those future deadlines are met with a scramble or a smooth glide.

To summarize key steps for fleet operators and solution providers:

• Start planning early and holistically. Develop a clear roadmap for phasing in EVs, including which parts of the fleet to convert first, how charging will be provided, and what investments are needed when. This should be a cross- functional effort involving operations, finance, facilities, and HR. Early planning yields options; last-minute action yields headaches [11] . Use the current “breathing space” wisely

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Electrifying UK Fleet Operations: Challenges, Strategies, and the 2035 Deadline

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