Companies may need to employ cost-saving methods from time to time, whether they aim to improve profitability levels or manage challenges in the economy. There are numerous strategies to cut costs, such as negotiating with suppliers, lowering financial expenditures, and even avoiding waste.
However, businesses might not be wary of the huge transportation costs associated with their operations. According to Statista, the costs of transportation and logistics in the UK might reach US$378.71 billion in 2029, as fuel costs have and will continue rising due to global supply chain pressures.
Considering this concerning estimation, companies should look to lower their transportation fuel consumption, starting by training their employees. Drivers can save on fuel costs if they maintain a moderate speed, avoid excessive idling, and optimise the vehicle’s loading.
But what if you could switch to electric vehicles?
Why should companies choose EVs?
Electric Vehicles (EVs) have become more popular for drivers who value sustainability and are looking to adapt to future trends. These cars use electricity instead of regular fuel, contributing to a healthier environment, as fossil fuels lead to air pollution.
In addition, EVs are safer than regular vehicles due to the absence of flammable fuel. At the same time, EVs have fewer moving parts, so they don’t require as much maintenance. EVs have also been shown to perform greatly in crash safety tests. Still, drivers must be wary of the lack of sound EVs are known for, which has become one of the main reasons for car accidents in electric vehicles, especially car park accidents. Those injured in car accidents are entitled to compensation if they were victims, according to https://www.caraccidentcompensationadvice.org.uk/.
EVs can lower transportation costs
Electric vehicles have numerous advantages for those interested, as several government programs offer grants and tax benefits for buying an EV. In the UK, the Vehicle Excise Duty (VED) depends on the registration date of the vehicle. Therefore, electric, zero, or low-emission cars registered between the 1st of March 2001 and the 31st of March 2017 come with a yearly tax rate of £20, but those registered from 2017 up until the 31st of March 2025 require a £195 standard rate.
Businesses can benefit from capital allowances for electric vehicles and deductions on leasing costs. Charging points are also eligible for allowances, but companies must check their local requirements if they want to establish a charging plant.
EVs can reduce the carbon footprint
Businesses that reduce their carbon footprint benefit from improved reputation and a competitive advantage and can also reduce operational costs. Whether you meet environmental regulations or achieve self-imposed goals, your business can become a leading example for the industry.
Typical passenger EVs consume about 2,000kWh of electricity per year, which is less compared to what a regular home consumes yearly. On the other hand, fossil fuel-based vehicles are some of the biggest causes of human-caused greenhouse gases, as they create harmful by-products like nitrogen dioxide and carbon monoxide.
EVs can contribute to employee satisfaction
Using EVs instead of regular vehicles shows commitment to better air quality in your areas, as they don’t expose citizens to harmful chemical compounds and pollutants. In addition, owning EVs also requires installing the appropriate infrastructure, such as on-site smart charging facilities.
Contributing to an evolving local environment is essential for employees as well. Drivers, for example, benefit from better route planning and reduced breakdowns, as EVs have been designed with efficiency and safety in mind. EVs for employees also help lower commute costs, providing an advantage for both the worker and the employer.
EVs support a good reputation
Companies will have to comply with laws and regulations regarding the use of environmentally friendly vehicles and devices, which contribute to their reputation as responsible businesses towards legal frameworks. More and more consumers and employees value organisations that demonstrate their green leadership and approach to sustainability credentials.
This contributes to customer loyalty and develops considerable appeal to potential new recruits. Overall, EVs provide new sources of value due to their energy optimisation strategies, enabling a consumer-facing business by contributing to the changing infrastructure.
Still, EVs are not perfect
Although regular vehicles present particular issues as well, EVs are still developing, meaning they are prone to several challenges:
- Finding a technician for EVs can be difficult due to the small market;
- The charging infrastructure is lacking proper coverage, leading to range anxiety;
- The possible issues with the grid capacity that will require states to meet the demand;
- Managing charging price structures that can lead to inconsistent pricing;
Early adoption of electric vehicles is essential to fighting climate change and pushing for a real impact on nature. However, the industry will need to perfect its products so that users can trust EVs continuously.
But the future of EVs is bright
The rise of technological advancements will contribute to a new era in the automotive industry. Therefore, innovations will make EVs safer, more affordable, and more efficient through the following:
- Pushing the boundaries of charging through ultra-fast systems that can charge the battery in less than 30 minutes;
- Using electromagnetic fields for wireless charging, allowing drivers to charge their cars in a parking lot without physical cables;
- Drawing power from the grid and supplying it back through bidirectional charging;
EVs will also develop in terms of regenerative braking and fuel efficiency by:
- Reducing the support on energy from a charging station and relying on the energy sent back from the battery;
- Capturing energy that would’ve been lost as heat and extending the vehicle’s battery life;
- Putting less stress on the brake as the regenerative system requires fewer parts to be replaced;
Final considerations
Cutting costs is a standard action for a company wanting to overcome a challenging situation or simply wanting to attract more money. Among all the numerous strategies companies approach, switching to electric vehicles from regular ones is one of the best ways to cut costs in the long term. EVs require electrical charging and less maintenance and are also environmentally friendly, providing the benefit of brand recognition.