If the monthly VFACTS results weren’t enough to convince manufacturers that the fleet market is an important segment (48% of all new vehicles July YTD), than the investor presentations of the listed Fleet Leasing Companies should catch their attention if they are planning to launch electric models.
In the recent SG Fleet full year results, they stated that novated lease quotes for electric vehicles increased 14 times from Q1 to Q3. And in Q3, 40% of novated lease quotes were for EVs.
The quotes have also turned into deliveries despite the limited supply over the last 12 months. SG Fleet reported that there are nine times more electric cars in the novated lease car park than the previous year with specialist EV manufacturers and new entrants boosting registrations.
McMillan Shakespeare Group (MMS) stated that the implementation of Electric Car Discount Bill which exempts certain non-luxury zero and low emissions vehicles from FBT, resulted in elevated inquiry and activity during FY23 from customers seeking an EV, with EVs representing 21.4% of novated orders in June 2023.
Earlier this year when FleetPartners released their Q1 results, they told the market that electric vehicles being sold to fleets, and as novated leases, would provide a positive financial impact on they future earning.
More new car buyers are looking at novated leasing because the FBT Exemption on EV and PHEV makes a $70,000 electric car as affordable as a $45,000 petrol vehicle according to sources in the salary packaging industry.
Tesla appears to be the sole beneficiary of this new policy that encourages the adoption of zero emission vehicles because of their ability to supply quantities of the Model 3 and Model Y to meet demand from novated lease buyers.
However this is changing with Kia and Hyundai reporting increased supply of the EV6 and IONIQ 5 due to U.S. government policies that favour locally built electric vehicles. On a recent visit to a Sydney Kia dealership, the EV6 was the only vehicle on display in the showroom.
Mercedes-Benz is also launching a number of new electric models though most priced above the luxury car tax limit of $89,322 for fuel efficient vehicles and won’t be eligible for the FBT Exemption in a novated lease.
Peugeot recently releases the e-Partner van and this month the e-2008 SUV arrived in the showrooms.
Kate Gillis, Managing Director at Peugeot Australia, told Fleet EV News recently at the launch of the e-2008 that buyers have been evaluating different drivetrains since they launched their PHEV range in 2022.
With salary packaging and the FBT Exemption, buyers looking at the 2008 petrol model can also consider the e-2008. The difference in purchase will disappear when converted to a monthly rental for a novated lease quote. So they’ll be able to pick the drivetrain that suits their lifestyle and environmental preferences without paying extra.