Electric vehicles (EVs) are still too
expensive for fleets, the British Vehicle Rental and Leasing
Association (BVRLA) has warned as it launches a new business guide
to electrical vehicles. 

According to figures released by the Society
of Motor Manufacturers and Traders (SMMT), only 812 buyers have
used the Government’s £5000 plug-in-car grant so far this year.

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Despite the £5000 incentive, many potential
fleet buyers get put off by the total cost of owning an EV, the
BVRLA has advised.

The business guide published by the
association suggests that a Nissan Leaf could cost £5,000 more to
own and operate compared to an equivalent diesel car over a typical
three-year, 36,000 mile company car lifecycle.

BVRLA chief executive John Lewis said: “Fleet
customers don’t buy on sentiment – cost is their main
criteria.”

“More than a dozen new electric and hybrid
vehicles are set to hit the UK market over the next year, but most
of them will be decorating showrooms unless manufacturers are more
realistic on pricing.”  

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Stuart Walker, strategic marketing &
ancillary services director at Leaseplan said: “It’s a very complex
situation at the moment.”

He added that the total cost of ownership is
the key criteria and believes the retail price of EVs will be
brought down as higher volumes start to get produced. 

Jeremy Snook, spokesperson at Leasedrive
explained that the ideal price of an EV would be comparable to an
ordinary vehicle, but that the poor recharging infrastructure also
makes EVs less attractive to invest in.

He believes that EVs mostly appeal to people
who want a second car and live in cities with convenient access to
recharging the vehicle.