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Short-term leasing critical to the mass adoption of EVs

Mobility provider argues that motorists who can use an EV for a month on a short lease will be convinced by the low running costs and driving dynamics. At least 35% of its fleet will be electric vehicles, and it anticipates this will increase over the coming months.
Karl 1
Karl Howkins

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January 11, 2021

GETTING people into an electric vehicle for a short time will be enough to convince them of the benefits according to new mobility provider SOGO.

The company argues that motorists who can use an EV for a month on a short lease will be convinced by the low running costs and driving dynamics. At least 35% of its fleet will be electric vehicles, and it anticipates this will increase over the coming months.

Karl Howkins, managing director of SOGO, said: “Sales of new electric cars are increasing exponentially with some fleet companies reporting they account for 30% of all sales. However, private motorists and smaller fleet owners, will still face concerns around range anxiety and using new technology.

“The ability to use an electric car for a month or two will overcome driver concerns and accelerate the adoption of this important technology ahead of the ban on ICE vehicles in 2030.”

According to figures from the SMMT, battery electric vehicles (BEV) sales increased 185.9% in 2020, accounting for 6.6% market share, an increase of 5% on 2019.

SOGO will provide ultra-flexible service with leases available from one month to four years. It will build a fleet of around 5,000 vehicles in its first year.

The latest technology will provide a digital-led service that will allow customers to order a vehicle in a matter of minutes. It is operating nationally from a network of logistics hubs.

SOGO customers can benefit from a subscription model that includes comprehensive insurance, maintenance, breakdown cover and industry-leading flexibility. A consumer launch will follow the roll-out to businesses.

New research commissioned by Cambridge and Counties Bank has found that the majority of SME business owners (94%) believe businesses that use vehicles and wheeled assets have a responsibility to change them to EVs as soon as possible, with almost half (46%) believing this should be a priority.

The research found that around a quarter (23%) of respondents said they were already in the process of switching to EVs, while a third (35%) said they are aiming to start the process in the future. Just 3% said they have no plans at all to switch.

To support UK businesses and SMEs to transition to EVs, Cambridge and Counties Bank now includes lending against electric vehicles as part of its green lending strategy and product suite. The bank has rolled out a campaign to support this initiative for UK businesses looking to move to EVs, this includes; no upfront fees, no document fees, deferred VAT payments, and payments deferred for the first three months.

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Chris Wright

Chris Wright

Chris Wright has been covering the automotive industry nationally and internationally for 30 years. Following spells with consumer titles he became News Editor of Automotive Management (AM), Editor of Automotive International, International Editor for Detroit-based Automotive News, and Editor of Dealer Update. He has also co-authored several FT Management Reports and contributes regularly to Justauto.com

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