2 April 2026
Living with electric vehicles (EVs): considerations for fleet managers and motor traders
Back in November 2020, the Government announced a ban on new sales of petrol and diesel cars, vans and pickups by 2030, followed by diesel lorries from 2040 (1). The sales of hybrid and plug in hybrid vehicles are also to be phased out by 2035 (2). These targets, set to support net zero goals and be the fastest G7 member to stop vehicle emissions, catapulted the adoption of electric vehicles (EVs).
Today, that move is well underway. Backed by the Zero Emission Vehicle (ZEV) Mandate (3), which requires manufacturers to sell more zero‑emission vehicles each year, EVs are no longer a future consideration - they are part of everyday business.
For Fleet Managers and Motor Trade operators, living with EVs brings new challenges and opportunities. It’s not just about the vehicles themselves. Fleets, buildings, people and risk all need to be managed together to make sure operations remain safe, efficient and resilient.
EV adoption has moved firmly into the mainstream
The adoption of EVs in the UK has increased significantly, with EVs now accounting for over 20% of all car registrations. Fleet electrification is shifting even faster, outpacing private buyers. As of January 2026, the year-on-year change is of 22.3% for Light Commercial Vehicles, 62.3% for buses and coaches, and a staggering 170.5% for Heavy Goods Vehicles (HGVs), demonstrating that fleets are no longer testing the water – they are transitioning at scale (4).
When looking across all vehicle types however, the most recent Government figures indicate that there are 1,759,000 zero emission vehicles on the road, which represents only 4.2% of the total car parc(5). This suggests that adoption is likely to accelerate even more.
Cost savings, growing infrastructure confidence, tax incentives and competitive EV models have all contributed to this adoption. Corporate sustainability goals will also be a huge driver behind this transition, 84% of organisations have now adopted at least partial netzero fleet strategies, with EVs playing a central role. (6).
A core part of the business strategy, not an optional extra
EVs are now a fundamental part of many fleet and motor trade operations. Success depends on how well they are built into procurement and day-to-day planning - from vehicle selection to how, where and when charging takes place across sites and driver routes.
Public charging infrastructure continues to grow, with tens of thousands of charge points available nationwide and more rapid and ultrarapid hubs supporting longer journeys. Even so, relying on ad hoc charging can lead to disruption. Having a clear charging strategy, aligned to operational needs, is essential.
EVs also bring new technical and safety requirements for the Motor Trade industry, as well as workplaces, car parks and commercial premises with on-site charging. High‑voltage systems demand trained technicians, specialist equipment, regular inspection and risk management strategy, with rigorous procedures for battery isolation, repair and recovery.
Considerations for fleet operators
Fleet managers and motor trade daily‑drive operations must balance diverse technologies, stay compliant, balance costs as they plan for the next stage of fleet transition. Here are some of the key considerations:
Government Support: The Office for Zero Emission Vehicles (OZEV), continues to lead the UK’s transition to zero emission transport, and its policies are now centred on infrastructure rather than vehicle purchase grants. The Workplace Charging Scheme (WCS) remains a key incentive (7), offering a contribution of up to £350 per socket, covering 75% of installation costs, and available for up to 40 sockets per business - a cost-effective way to build reliable depot charging and support fleet transition plans.
The tax landscape continues to favour EV adoption: BenefitinKind (BiK) rates remain at 3% until 2028. A BiK easement was also announced by the Government (8) after the 2025 autumn budget, which temporarily treats qualifying PHEVs as emitting 1g/km CO₂, preventing steep tax increases caused by new emissions testing standards and keeping costs predictable for fleets managers.
Operational fragmentation: Many fleets now run mixed-energy operations. The hidden challenge is keeping diesel, hybrid and electric assets compliant under one management model, especially around inspections, safety protocols and HV system requirements.
Misalignment between maintenance regimes can introduce downtime and compliance risk, treating a hybrid vehicle as an ICE one can be costly, so each type of vehicle should be managed according to their technology to maximise efficiency.
Choosing the right models: When it comes to selecting models, fleet operators should focus on matching it to real everyday usage, rather than peak scenarios.
- Analyse real patterns and seasonal variance and pick a vehicle that reliably meets 90% of real-world duty cycles, avoid overspec’d vehicles that unnecessarily inflate costs.
- Align vehicle to operational strategy, and not the other way around: eg. If you rely on depot overnight charging, select a model with slower charging and lower battery costs. Prioritise models that integrate seamlessly into your data ecosystem: native telematics, strong OEM data transparency and APIs to your existing fuel/charge and route planning tools.
- Ensure that the vehicles fit your maintenance and inspection operations, EVs require more specialised skills which are currently in short supply.
As technology rises, the motor repair sector skills gap is widening.
Charging economics: The biggest lever for savings is where the charging happens, not necessarily the vehicle model. Fleets with poor charging strategy can end up paying more if relying on en-route charging (9), which can add volatility and operational delay. A 2026 Rightcharge report(10) shows that while public charging points represent 27% of total charging, they account for 57% of the costs.
Training fleet operators and drivers on good charging discipline, vehicle preservation and how the payload affects the range could all help mitigate this issue. Using data to understand usage, energy consumption and charging patterns can help optimise fleet performance and support better decision making. Battery lifecycle management will also help inform when to rotate vehicles or repurpose or retire battery packs
Considerations for motor traders
Motor traders are facing new operational, safety and risk‑management demands as EVs become a growing part of stock profiles, requiring updated policies, training and processes to stay protected and compliant.
EV risk-management policy: Implementing a formal policy covering fire safety, battery handling, charging, and safe segregation of EV stock is the key protection element for motor traders. While larger businesses may already have these processes in place, it’s equally important for SMEs to build this capability early, even if EVs might represent a smaller share of their workload.
While EV battery fires are less likely to catch fire than traditional combustion engines (11), the severity of these fires can be much greater due to their ferocity. Even in cases where the seat of the fire isn’t an EV battery, the presence of lithium-ion batteries can contribute to rapid development of the fire, making it more difficult to extinguish.
Electric fires also result in increased levels of contamination, so having strong policies to manage such instances will be crucial for mitigation and recovery. Particular attention needs to be paid to accident damaged vehicles or battery units, these should be isolated as they’re at the risk of thermal runway.
Allianz UK is warning motor traders to be aware of the risks associated with Electric Vehicle (EV) battery fires, which have caused extensive damage in recent cases and created unique challenges.
The risk of EV battery fires
Training investment: A rapidly shifting technology requires a training programme that moves just as fast. Ensuring that employees are trained in high-voltage safety, EV diagnostics, battery isolation and post incident protocols. A large number of resources are available from Motor Industry bodies and organisations, including much needed repair skills. You can find discounts for some of our partners and preferred suppliers:
- RMI Academy of Automotive Skills | MOT & Technical Training
- Drivetech, from the AA | Driven to keep people safe
- Innovative Green Fleet Technology – Driver Coaching & Rewards
- Academy - Thatcham Research
Repairability: The repair ecosystem is lagging behind EV growth, and a growing gap exists between EV uptake and the infrastructure needed to support them. This has implications beyond repair delays and cost inflation: longer vehicle off-road times, greater customer dissatisfaction, increased courtesy vehicle costs and higher scrutiny regarding repair partners and supply chains. A recent framework presented by Thatcham Research(12) also proposes that many EV write-offs could be prevented by following eight principles which cover safety measures, handling and diagnostics.
Cybersecurity: A more connected world opens the door to more vulnerabilities, which in the case of the Motor Trade includes having their stock driven away. Although modern security measures have made vehicles much more secure, motor traders still must have the right protocols in place to protect vehicles, chargers, diagnostic tools and internal networks from cyber intrusion.
Having the right cover: Ensure insurance policies explicitly cover EV specific risks including battery, charging infrastructure, cyber, and environmental exposures.
Chargepoint inspections
In line with regulatory requirements, all electrical systems should be maintained to ensure the safety of persons and the protection of property. EV charging equipment should be routinely checked, inspected and tested in line with their manufacturer's recommendation to make sure the duty holder/owner complies with the requirements of the Electricity at Work Regulations 1989.
Regular inspections of EV charging stations make sure of their safe and efficient operation. These inspections help identify potential hazards such as wear and tear, electrical faults, or damage caused by environmental factors, which could pose safety risks to users. Additionally, routine inspections support with compliance, legal and regulatory standards, minimise downtime, and can often extend the lifespan of the equipment.
By prioritising inspections, organisations can mitigate risks, enhance user confidence, and contribute to the overall reliability of electric vehicle infrastructure.
Protect yourself and your business
Our range of products are only available through insurance brokers. Speak to your insurance broker today about our Motor insurance - a broad offering that reflects the needs of modern fleets and motor traders
Source
- Outcome and response to ending the sale of new petrol, diesel and hybrid cars and vans - GOV.UK
- Phasing out sales of new petrol and diesel cars from 2030 and supporting the ZEV transition: summary of responses and joint government response - GOV.UK
- Government sets out path to zero emission vehicles by 2035 - GOV.UK
- Electric Vehicle (EV) Data | UK Electric Vehicle Registration Statistics | SMMT
- Vehicle licensing statistics, United Kingdom: July to September 2025 - GOV.UK
- EV Adoption and Attitudes in the Commercial Fleet Sector
- Workplace Charging Scheme - GOV-UK Find a grant
- Plug-in hybrid electric vehicles — benefits in kind easement - GOV.UK
- How much does it cost to charge an electric car? - Which?
- Download: Annual State of Fleet Charging Report
- Thatcham Research 2023
- Written evidence - SEV0048