Plug-in hybrides

Are PHEVs – plug-in hybrid electric vehicles – compatible with a sustainable mobility policy? ALD Automotive says: absolutely. In this e-magazine, we zoom in on this type of vehicle: what exactly are PHEVs, and under what conditions can these types of vehicles be integrated into a green mobility policy? What are some of the aspects fleet managers must consider when incorporating plug-in hybrids into their mobility policies?

What are phevs?

PHEVs (plug-in hybrid electric vehicles) are cars which run on both an internal combustion engine powered by petrol and an electric motor using energy from a battery. They have a battery pack that can be charged using a plug or charging point and can clock up electric mileage of around 50 to 70 kilometres before the combustion engine kicks in.

This makes PHEVs more versatile than fully electric vehicles (BEVs – battery electric vehicles). The electric capabilities of a PHEV are generally sufficient to cover a large portion of everyday travel, including commuting. Combustion engines are also convenient for longer distances, such as driving holidays, and drivers do not need to factor in en-route charging options (or at least not to the same extent).

PHEVs and sustainable mobility policies

One key factor fleet managers and PHEV drivers must keep in mind is that the bulk of their mileage will be electric. You can read the reasons for this below.

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Plug-in Hybride powerful tool in the road towards sustainability

How sustainable are PHEVs?

While PHEVs are perfectly compatible with a sustainable mobility policy. However, as stated above, there is one key factor to keep in mind: to take advantage of a PHEV’s sustainable potential, you must use its electric capabilities.

Charge whenever you can, not only when you have no other choice

Although this might seem like a given, experience has shown that many PHEV drivers do not cover enough electric mileage with their PHEVs to maximize this sustainable potential. The upshot is that the average carbon emissions of business PHEV drivers in the Netherlands are approximately four times as high as the Worldwide Harmonized Light Vehicles Test Procedure (WLTP) level (source: International Council on Clean Transportation). This shows a very substantial difference between theoretical levels and actual emissions.

The solution of reducing fuel consumption and carbon emissions is a simple and straightforward one, and the charging behaviour of drivers is a key factor to be considered. In fact, it is a major criterion when considering whether this type of vehicle is a valuable sustainable addition to your mobility policy. Electric vehicles require a different mindset than their conventional counterparts: ‘charge whenever you can, not only when you have no other choice.’ In other words: if you have the opportunity, plug in.

 

What is the best approach?

Incorporating PHEVs into your mobility policy

Based on your driver profiles, ALD Automotive can advise you to which employee groups PHEVs are best suited. This might depend, for example, on commuting distance, a person’s job, the number of kilometres they cover on a daily basis, and how many of these can be travelled by electric vehicle.

Once you have identified which employees are eligible for PHEVs, you can further design your company vehicle policy based on their filling, charging and driving habits. To reiterate: to maximize the sustainable utilization from PHECs, it is therefore important to invest in electric mileage.

In addition to basic terms such as lease period, budget and whether or not the driver uses the vehicle for personal purposes, you can also include intentions to promote the right kind of driving and charging habits. The focus should obviously be on electric mileage, and charging where and when possible.

As an employer, you can also contribute significantly by facilitating charging options at the office or offering lease car drivers a charging station at their home address. This will help you increase the electric mileage covered by your employees, while you can also encourage them to use charging facilities by reducing the filling budget for petrol or diesel. This helps to turn green mileage into the standard.

PHEVs and TCO

It is important to know how the total cost of ownership (TCO) of PHEVs relates to fully electric vehicles and petrol vehicles. A TCO analysis looks at a variety of factors, including the vehicle’s lifecycle, its consumption, and where the user generally expects to use charging facilities. For example, charging your vehicle at home is less expensive than using public roadside facilities. Finally, the mileage covered (both for business and personal purposes) is a key component of the TCO analysis.

Incorporating PHEV into the overall sustainability proposition

In the process of making Dutch vehicle fleets more sustainable, it is important to consider multiple types of use which help reduce carbon emissions. There is no one-size-fits-all solution – which is why hybrid solutions, including PHEV, offer the greatest potential.

While ALD Automotive can help you create driver profiles, this means there is no specific user population which is suited to drive a PHEV. This depends on the type of PHEV, the vehicle’s driving range, the driver’s job, commuting distance, and the available charging facilities at home or at the workplace.

The fact is that PHEVs enable you to convert more grey mileage into green mileage and can accommodate those employees who are currently unwilling or unable to switch to fully electric vehicles. This will allow you to achieve your sustainability targets and reduce carbon emissions within a shorter space of time.

PHEVs versus its critics

Although electric vehicles are the future of mobility, there are many detractors who feel there are still too many drawbacks involved at this stage. However, both the technology and the charging infrastructure are undergoing rapid advancement, and electric vehicles have improved immeasurably over the past decade. Research by ALD shows that the majority of lease car drivers who have switched to electric vehicles have no intention of changing back.

PHEV can help to win over the critics. EV range anxiety – the fear that an electric vehicle will not have enough battery charge to reach its destination – is unfounded for PHEVs. One advantage of PHEVs is that they enable lease car drivers who are reluctant to switch to electric to get used to the hybrid set-up and experience the benefits of electric mobility.

Percentage of electric vehicles in the Netherlands 

Type of vehicle Number/
Percentage
31-12-2018 31-12-2019 31-12-2020 31-12-2021 31-12-2022
Number 138,204 196,817 270,668 381,823 515,838
Passenger vehicles (electric) Percentage of fleet 1.63% 2.29% 3.11% 4.33% 5.8%
Type of vehicle Number/
Percentage
31-12-2018 31-12-2019 31-12-2020 31-12-2021 31-12-2022
Number 94,642 91,593 97,779 137,673 186,947
Passenger vehicles (plug-in hybrid electric, PHEV) Percentage of fleet 1.12% 1.06% 1.13% 1.56% 2.1%

 

Important to know if you are considering buying a PHEV

  • PHEVs allow you to discover the flexibility of switching between electric mode and conventional engine mode. However, since tank capacity tends to be significantly lower than for traditional petrol-fuelled vehicles, drivers will need to fill up more frequently if they intend to use conventional mode relatively often.
  • Most plug-in vehicles are not suited for using fast-charging stations because the batteries have not been adapted accordingly. In fact, this is also likely to be less relevant, because the battery is smaller in size.
  • Although the Dutch government – unlike for BEVs – has not reduced the additional tax liability for PHEVs, you do benefit from a 50% lower road tax until the end of 2024. In 2025, the half-rate scheme will be phased out and you will only be entitled to a 25% road tax rebate.
  • Owing to the relatively low carbon emissions of PHEVs, you generally pay less BPM on purchase than with vehicles with combustion engines, since the BPM rate system has been based since 2020 on a vehicle’s carbon emissions.

Interview with Jelle Oosterhoff, MaaS & Consultancy Manager, ALD

“Plug-in hybrids are a powerful tool on the road towards sustainability”

PHEVs have been truly groundbreaking and have had a revolutionary impact from the time they were first introduced. Electric vehicles were still in their infancy at that stage, and battery driving ranges were still extremely low. Plug-in hybrids offered the best of both worlds for drivers and provided the impetus for the construction of a charging infrastructure across the Netherlands.

Fast-forward a decade or so, and the electric revolution is well underway. PHEV technology has also progressed rapidly, and the batteries are completely different from when they were first launched in the market. Batteries have much higher capacities and are more lightweight, and we are more experienced in using them. All these factors have increased battery driving ranges, to the point where

PHEVs have become powerful tools in further improving the sustainability of vehicle fleets. In fact, they can give diesel drivers who are still on the fence the opportunity to test the waters and switch to electric at least partially. This is a good way to persuade them that electric vehicles are the best alternative available today. These types of drivers tend to be reassured by the fact that they can still fill up at any petrol station, and PHEVs are a way to get them on board for the green revolution. While this does not result in full mileage electrification, it is at least a step up from fuel-only, non-hybrid vehicles.

Interview with Jasper Heshusius, CSR Officer, ALD

“A sustainable future calls for a smarter and flexible use of mobility”

ALD Automotive has integrated Corporate Social Responsibility (CSR) into its policies. This commitment involves substantial investments in sustainable mobility, responsible employment practices, transparent business and working on reducing our environmental footprint.

We also intend to offer our customers sustainable solutions for the future: reducing carbon emissions and improving quality of life in cities through the smarter and more flexible use of different types of mobility. Many efforts are being made at the macro level to reduce environmental impact. The new ‘Norm 7’ standard will be implemented in 2025, which will require automotive companies to manufacture lower-emission vehicles. This is a significant change which would promote the manufacture of more PHEVs and EVs, increasing the supply of electric vehicles.

From 2023 onward, companies are also required to register their emissions. PHEVs can play a role in this process, as more grey mileage is converted into green mileage. These types of cars may be the ones to win over fuel drivers. They will get to experience the benefits of PHEVs, which makes the step towards a fully sustainable electric vehicle fleet smaller for businesses. While purchasing an electric vehicle fleet obviously requires investment, when we look at overall expenses, it costs more not to comply with the carbon emission standards set by the European and Dutch authorities. This means the investments which need to be made to make the transition to a fully electric vehicle fleet should not be an impediment.  If we add together all these trends and developments, all the boxes are ticked on the roadmap towards more sustainable mobility in the Netherlands.

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