Whether they’re delivering goods to customers or transporting employees to clients, a fleet of vehicles is a vital part of many companies’ business plans. With ever-rising fuel costs and growing concerns about the impact of carbon emissions, however, many companies are also under pressure to get the most efficient use out of their vehicle fleets, which is where modern technology can help.
One of the biggest developments in the automobile world in the last decade has been the increasing prevalence of hybrid vehicles. These fuel-efficient cars use a combination of petrol or diesel engines and electric motors to get excellent fuel mileage and minimum carbon emissions. For companies with a fleet of cars as opposed to vans, hybrids are an extremely attractive option. Prices tend to be slightly higher than most petrol-driven cars, but there are a number of savings that offset this price difference. Increased fuel efficiency is one, of course; the Honda Insight hybrid, for instance, has a combined fuel efficiency of over 80 miles per gallon.
However, fuel efficiency isn’t the only advantage to hybrid cars. Tax incentives can help businesses with hybrid cars save hundreds of pounds per vehicle, since more fuel-efficient hybrids are taxed at a lower rate than conventional cars. Vehicles with under 75g/km of carbon emissions have a 5% tax rate and increase their tax rate more slowly than conventional cars. Even less-efficient hybrids start at a 10% tax rate, as well as being exempt from some other expenses such as the London congestion charge, according to a Fleet Alliance white paper.
Of course, hybrid vehicles aren’t suitable for every business’s needs. In particular, businesses transporting goods or equipment rather than vehicles need vans, and vans aren’t well-represented among hybrids, at least for now. Website EV Fleet World reports that hybrid vans designed specifically for company fleets are in development by UK companies Intelligent Energy and Revolve Technologies.
Another way in which modern technology can help businesses save money on their fleets is vehicle tracking. Vehicle tracking systems make use of inexpensive mobile GPS technology and specialised software to track the locations of company vehicles in real time. This has many benefits, notably the ability to provide up-to-the-minute delivery times for customers. For a company’s bottom line, however, the most useful feature of vehicle tracking is the ability to analyse how fleet vehicles are driven.
Ever-increasing fuel costs and accumulating wear and tear mean that any company benefits from making sure that vehicles reach their destinations with the minimum possible amount of road time. Tracking fleet vehicles allows managers to find more efficient routes, saving both time and money. Tracking also eliminates the possibility of vehicle misuse by drivers. Managers can get the information they need to optimise fleet practices without having to spend the time necessary to monitor each journey individually.
Today’s economy poses a number of new challenges for company fleets, but intelligent use of modern technology can turn these challenges into advantages.
Daniel N is a UK based blogger who writes on a variety of subjects including business and motoring He is currently working on behalf of vehicle tracking company RAM tracking.
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