High costs needn’t prevent SMEs investing in electric vehicles

Our recent research suggests that in the current difficult economic climate rising costs are deterring most SMEs from investing in electric vehicles (EVs).

Our research shows that 81% of SMEs want to transition to green transport, but that the current difficult economic landscape is delaying plans to invest, rather than halting them altogether. Of those exploring greener transport, 40% plan to start within the next two years. 

“It’s clear to see there is appetite among UK small businesses to transition to electric vehicles in order to both lower fuel costs and make a significant contribution towards the nation’s climate targets. However, the current economic climate and immediate cash-flow concerns mean that many SMEs feel they need to put plans on hold,” says Ian Isaac, Managing Director at Lombard, NatWest Group. 

Our research also shows that: 

  • the price of electricity is a barrier for 28% of businesses 
  • entry costs for new vehicles are deterring 32%  

According to Ian, however, businesses should still consider their options:

“The first step on this journey is the hardest and it’s a big decision for businesses. But our research shows the intention to transition is there, and the sooner businesses take that first step, the sooner they will be able to see the benefits.”

Among those looking to electrify their fleet, there are three strong motivations for doing so: 

  • the business case for adopting EVs is a motivator among 44% 
  • emissions reductions motivate 40% 
  • addressing sustainability concerns motivate 36%

Help with Carbon Planning

We have also created the NatWest Carbon Planner, a free-to-use digital platform designed to help UK businesses manage their fuel and operational costs and reduce their carbon footprint. This includes information that decision-makers can use to build a business case for investing in the transition to net zero.

To date, approximately two thirds of businesses that have used the Carbon Planner have gone on to produce a carbon reduction action plan.

For more information and funding support for your business, visit our Climate Hub.

This material is published by NatWest Group plc (“NatWest Group”), for information purposes only and should not be regarded as providing any specific advice. Recipients should make their own independent evaluation of this information and no action should be taken, solely relying on it. This material should not be reproduced or disclosed without our consent. It is not intended for distribution in any jurisdiction in which this would be prohibited. Whilst this information is believed to be reliable, it has not been independently verified by NatWest Group and NatWest Group makes no representation or warranty (express or implied) of any kind, as regards the accuracy or completeness of this information, nor does it accept any responsibility or liability for any loss or damage arising in any way from any use made of or reliance placed on, this information. Unless otherwise stated, any views, forecasts, or estimates are solely those of NatWest Group, as of this date and are subject to change without notice. Copyright © NatWest Group. All rights reserved.

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