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British SMEs remain lukewarm on electric vehicles

Publication Date: 04 Jun 2019 - By ReachX Team By ReachX Team
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Macro Equity Fundamental Equity UK Automotive

Fresh industry research suggests UK small and medium enterprises (SMEs) remain unconvinced that electric vehicles (EVs) are the future of motorised transport in the country, despite many being taken in by their environmental benefits. 

Latest survey data, from 900 British SMEs, compiled by Close Brothers Asset Finance in April 2019 indicated that 41% of respondents think EVs will become ubiquitous over time, for 36% it’s ‘too early to tell’ and for the remaining 23% it’s a definite ‘no’.

In spite of the scepticism about the eventual part EVs will play in some quarters, nearly 3 out of every 5 respondents (57%) said EVs are environmentally positive compared to the current options.

Neil Davies, CEO of Close Brothers Asset Finance, noted: “Our research shows that while only 30% of those polled had ever driven an electric car, the majority (59%) would consider purchasing an EV if more incentives were available; this figure rises to 73% for London business owners, where the Ultra Low Emissions Zones were recently implemented.”

“Range anxiety” is often cited as the primary reason for lack of EV uptake and, while important, both the lack of public charging points and the cost of vehicles rank higher in respondents’ list of concerns.

As the technology improves, issues with range will become less of factor, Davies added. “And while it makes the top 3 reasons hindering the update of EVs, the lack of public charging points and 'cost of vehicles' were first and second; interestingly, nearly 60% of respondents said they would consider purchasing an EV if there were more incentives available.”

Disclosure:

I have no positions in any of the securities referenced in the contribution

I do not use any non-public, material information in this contribution

To the best of my knowledge, the views expressed in this contribution comply with UK law

I agree with the terms and conditions of ReachX

This contribution is for informational purpose and does not constitute investment advice nor is it an offer to sell or buy, nor is it a recommendation for any security.

ReachX Team

 

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