Why the EV transition needs a rethink in 2026

A few years ago, boardroom discussions around EVs were mainly around range anxiety, the limited models available and concerns about whether drivers could find a working charge point when on the road.

A lot has changed since then, but it doesn’t mean electrification has become a simple process.

In 2026, successful electrification is a wider business issue that needs input from teams across the organisation. Here are 6 things to think about when considering the transition to EV.

Look at the TCO numbers every year

The total cost of ownership (TCO) for an EV can change as quickly as the market or your fleet does.

As charging needs evolve and energy prices and tax rules change, calculations made just two years ago may no longer reflect what an EV costs to run today.

A TCO assessment looks beyond the initial upfront purchase or lease cost, instead taking into account what it costs to run the vehicle, including charging, maintenance and the financial impact of downtime.

It is also important to see how real life differs from the forecast when EVs are in place. For example, drivers may use public chargers more than expected, or vehicles are off the road longer than planned due to a lack of parts availability.

Fleets ordering electric cars today also need to look ahead to Electric Vehicle Excise Duty, which is due to come in from April 2028. Central mileage estimates and aggregate payments should make the tax simpler for fleets to administer, but the cost will still need to be built into TCO calculations.

Residual values are another important consideration especially as there is still uncertainty around forecasting of used values for EVs. Rapid technological changes, price cuts on new models from manufacturers, and evolving consumer perceptions around battery health create a volatile secondary market that historical automotive data cannot easily forecast.

Can your site supply enough power?

Planning depot charging for van fleets now starts with the site’s power supply as well as the charge points themselves. Businesses need to know whether enough capacity is available and what will be involved if more power is required.

If extra capacity is required, the process can take time, particularly where upgrades on the local network is involved. Speaking to the Distribution Network Operator early can help fleets understand what is possible before vehicles are ordered and avoid delays further down the line.

Rather than increasing the grid connection straight away, fleets may also be able to use smart charging to manage demand more carefully and make better use of quieter, lower-cost periods.

Vehicle-to-grid technology could also become more useful over time, allowing EVs to send energy back to the site or wider grid and potentially reduce costs. The market is still developing, however, so fleets should view it as a longer-term opportunity.

How will charging evolve to meet increased demand?

Charging strategies often need to evolve as more EVs are added to the fleet.

Charging at home is the most convenient but it might not work for every driver if, for example, they don’t have a driveway. Depot charging makes it easier to plan when and where vehicles charge, however installation may take time, while public chargers tend to be more expensive and less reliable.

Most fleets will need a mix of charging options, backed up by a clear policy so drivers know where and how they should charge.

As more EVs compete for the same chargers, fleets may also need a booking system to prevent delays. More advanced software can go a step further, using battery levels and vehicle schedules to plan charging, while giving fleets a clear view of which vehicles will be ready when needed.

How will your drivers claim back charging costs?

Drivers also need a clear way to claim back the cost of business charging.

For fully electric company cars, HMRC now sets different advisory rates depending on where charging takes place. Where a driver uses both, the mileage can be divided on a fair and reasonable basis.

Home charging is generally the cheaper option and the reduction in VAT on domestic electricity to 0% in October should bring costs down further. However, employers cannot reclaim VAT on electricity supplied to an employee at home. VAT may be recovered on eligible public charging costs but accurate mileage records must be kept.

As more EVs are added to the fleet, managing admin manually becomes more difficult. Automated systems can help keep track of charging costs and allocate them to the right driver or vehicle, ensuring drivers aren’t left out of pocket while giving fleets a clearer view of what their EVs cost to run.

How should you plan for SMR costs?

EVs may have fewer moving parts, but they will still need servicing and repairs.

Make sure specialist EV garages are nearby and plan vehicle maintenance in advance as some replacement parts may not be readily available.

Fleets should also think about what happens if something goes wrong with the vehicle. Warranty delays or lack of software support can keep a vehicle off the road for longer than expected, particularly after an accident or battery-related fault. In some cases, difficulty assessing battery damage can even lead to vehicles being written off unnecessarily.

A vehicle with a slightly higher lease cost may therefore offer better value if it is easier to maintain and repair.

Keep drivers and policies up to date

Drivers need time and support to get used to an EV.

Charging and planning journeys may feel unfamiliar at first, while drivers may also need training and support in how to get the best out of the vehicle. Giving drivers clear information can help them feel more comfortable with the transition to EVs.

Fleet policies need to keep pace too. Drivers should understand what is expected of them, how they can claim back charging costs and what to do if their usual charger is unavailable.

Businesses also need to keep an eye on changes outside the organisation. Updates to tax rules, mileage rates or available incentives may mean policies need to be reviewed.

A practical strategy

A successful EV transition needs to be managed as one joined-up programme, with clear ownership and a shared understanding of what the business is trying to achieve.

A phased approach makes it easier to see what is working, make changes where needed and keep the plan grounded in the realities of running the fleet.

Fleet Operations can help businesses understand where electrification makes sense and build a strategy that works in practice as well as on paper.