As the UK pushes toward net-zero emissions and low-emission zones continue to expand, fleet managers are facing a critical choice: should they transition to electric vehicles (EVs), opt for hybrid electric vehicles (HEVs or PHEVs), or continue with internal combustion engine (ICE) vehicles for as long as possible? With tightening regulations, rising fuel and energy costs, and evolving incentives, this decision is more important than ever for long-term operational and financial planning.
The Drive Toward Smarter, Greener Fleets
According to a recent study, 58% of fleet managers expect artificial intelligence and electric vehicles to have the most significant impact on operations in the coming years. And it’s no surprise: technology is transforming how businesses manage vehicles, track emissions, and reduce costs.
Supporting this trend, other research also shows that fleet operators are focusing on:
- Improving operational efficiency and productivity
- Meeting internal sustainability goals
- Decarbonising supply chains by reducing emissions
Fleet managers must now evaluate which vehicle type – EVs, hybrids, or ICE – offers the best combination of cost efficiency, reliability, and environmental compliance.
Fuel Efficiency and Running Costs
When EVs first entered the market, the financial savings from charging over fuelling were clear. However, rising energy prices in 2022 shifted the landscape. Electricity costs now depend on:
- Charging location (home, depot, or public charging station)
- Tariff type and energy provider
- Vehicle model and battery capacity
Still, with proper energy management and off-peak charging strategies, EVs can remain highly cost-effective. For instance, features like battery pre-conditioning can help maximise charge efficiency and range.
Hybrids, particularly plug-in hybrids (PHEVs), offer flexibility by combining electric power with traditional fuel, making them ideal for longer routes or mixed driving.
Running Cost Highlights:
EVs:
- Exempt from road tax until 2025
- No congestion or Clean Air Zone charges in many cities
- Free or discounted parking in selected areas
Hybrids:
- Lower first-year road tax (from just £10, based on CO₂ emissions)
- Still benefit from Clean Air Zone and congestion exemptions
Learn more about how to reduce fleet fuel costs.
Regulation & Sustainability: The 2030 Deadline
With the UK’s 2030 ban on new petrol and diesel car sales fast approaching, vehicle choice is not just about cost anymore. The European Commission has also set CO₂ emissions limits for vans:
- 153g/km by 2025
- 90g/km by 2030
These limits are expected to tighten further. Businesses that delay transitioning to cleaner vehicle tech may face:
- Higher costs for non-compliant fleet
- Limited access to certain urban zones
- Reputational risks for failing to meet environmental standards
For further reading on environmental regulations and supply chain decarbonisation, explore this article.
EV vs Hybrid: A Quick Comparison
Feature Electric Vehicles (EVs) Hybrid Vehicles (HEVs/PHEVs)
Emissions Zero tailpipe emissions Lower than ICE, but not zero
Fuel Costs Lower (with smart charging) Moderate (uses both fuel & electric)
Maintenance Fewer parts, lower costs More complex systems
Range Typically lower, improving Longer, no range anxiety
Incentives Strong Moderate
Best For Urban fleets, sustainability Long-distance or mixed-use fleets
Still unsure which is better for your business? Start by considering your fleet’s average route lengths, infrastructure access, and sustainability commitments.
MAXUS UK: Electrifying the Commercial Fleet
MAXUS UK offers a lineup of electric vans engineered to meet fleet needs, with:
- Practical ranges suitable for regional or urban delivery
- Smart telematics tools for tracking and route optimisation
- Government grant compatibility and low-emission credentials
Explore the MAXUS electric van range and discover options for your fleet.
The Right Fuelcard for the Road Ahead
Whether you’re transitioning to electric or operating a mixed fleet, the Edenred Black Fuel Card gives you the flexibility to manage both fuel and EV charging expenses. It offers:
- Access to over 5,500 stations across major brands (BP, Esso, supermarket sites)
- Lowest BP diesel prices across our network
- Compatibility with our BOOST loyalty scheme for added fleet savings
You can also explore our EV Charge Card Guide for businesses moving toward electric.
Final Thoughts: What’s Right for You?
Choosing between EVs and hybrids comes down to:
- Your operational routes and mileage
- Access to charging infrastructure
- Long-term environmental goals
If your fleet operates mostly in urban zones and you’re future-proofing against emissions legislation, EVs are the clear winner. If you need flexibility and long-distance capabilities while starting the transition, hybrids offer a solid middle ground.
Whatever your path, the right fuel card can support your journey.
