PHEVs: Your ride towards an electric future.
With the call for electric mobility getting stronger every day, many non-fossil fuel-powered cars are coming into the market with promising features. A strong contender today, is the Plug-in Hybrid Electric Vehicle (PHEV).
The International Energy Agency (IEA) reports that the global stock of PHEVs amounted to 2.4 million units, as of December 2019. For context, this is about one-third the stock of all plug-in electric passenger cars in the world.
PHEVs play an important role today, in our journey towards an all-electric world. The 'Hybrid' in PHEV represents the commonly seen twin-motor arrangement - a near-zero-emission electric motor, and the traditional Internal Combustion Engine (ICE). With the essential infrastructure for all-electric mobility in its nascent stages, PHEVs are a stepping stone meant to ease the transition into a fully electric world.
For corporates, today, a PHEV-car leasing policy promises a fuel-efficient, eco-friendly mobility solution that can effectively drive down costs, if implemented and operated efficiently.
What's in it for your company?
A corporate PHEV-car leasing policy has a lot of potential in key areas. Let's have a look.
If implemented correctly, the use of PHEVs by employees or field staff can be an opportunity to reduce CO2 emissions and meet your corporate environmental sustainability goals.
PHEVs can help bring down costs, by reducing dependence on conventional fuels, which are getting costlier by the day. A PHEV can cover significant distances of about 40-50 km on full-electric mode, which can help you maximise fuel savings. Eventually, it drives down the Total Cost of Ownership (TCO) of the car, as compared to conventional ICE cars.
Depending on the region in which you operate and within the applicable tax laws, you could avail of special tax benefits on PHEVs - a key incentive to drive higher adoption rates. This, along with the significant tax benefits car leasing brings you and your employees, could compound the monetary benefits you derive from a PHEV-car leasing policy.
PHEVs being a transition product to fully electric vehicles, investing in the infrastructure does make sense as it enables the company to shape a greener future for its fleet. With many financial incentives coming up for the set up of office and home charging infrastructure, the conditions are in favour of this transition.
How to get the best out of your PHEV policy?
- Identifying driver profiles based on factors like average daily mileage for business and personal usage, and the ability to charge at home and office can ensure that the right people have access to the vehicles, thus enabling better optimisation and tracking.
- Driver education or induction into ideal usage of PHEVs can maximise efficiency. A softer driving style lowers fuel consumption and drives energy efficiency.
- Policy-level checks such as a cap on fuel reimbursement can drive users to make the most of electric.
- Reporting and monitoring of fuel and energy consumption enable you to adjust driver behaviour and optimise.
What's in it for your employees?
A PHEV-car leasing policy can bring your employees a greener, safer mobility option. Today, public transportation might not be the safest option for their daily commute. A personal mobility option such as ALD Ugo can bring them a host of benefits, in the form of tax savings coupled with a better monthly cash flow as compared to a loan option, reduced fuel consumption, no resale hassles at the end of the tenure and value-added services that an ALD leased car comes with.
So, with maintenance, insurance and all the other hassles taken care of by us at ALD, your employees can now focus on the things that really matter.
At ALD Automotive, we believe that PHEVs are a step towards a greener, all-electric world. As technology improves, and the necessary infrastructure develops, all-electric mobility is on its way to make it big in the car market. PHEVs have an important role to play in the transition phase, and corporates and businesses should make the most of a well-implemented PHEV company car leasing policy.