When the history of motor vehicles is recorded, March 2016 will feature as an important milestone. It’s the month in which it became clear that electric vehicles would join the mainstream.

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In Australia and globally, driverless and electric vehicles have captured imaginations for decades: from the futuristic possibilities envisioned in The Jetsons cartoons of the 1960s, to the latest generation of electric cars from companies such as Tesla, BMW, Honda, Nissan and Ford. Until recently, however, pricing and manufacturing considerations has meant these innovative vehicles were only within easy reach of cashed-up connoisseurs and collectors.

Tesla’s Model 3 changes everything

That all changed in March when tech-savvy early adopters around the world formed queues for the privilege of placing an order for Tesla’s highly-anticipated Model 3 electric vehicle. A day later, Elon Musk tweeted that the Model 3 had attracted 180,000 orders at an estimated average price of US$42,000 with options. “So $7.5 billion in a day. Future of electric cars looking bright!” he said.

Foreshadowing a fossil fuel-free future

The electric vehicle represents the perfect storm of consumer demand for safer, better-performing and better-designed cars and the demand for greener vehicles that will usher in a fossil fuel-free future.

In its piece entitled ‘Tesla Model 3 orders power up, the Sydney Morning Herald reported that while the costs to Australian consumers of buying an electric vehicle were still relatively pricey, there is a possibility that the end price could be cut by more than $8,000 a car through incentives such as exempting them from FBT.

“Power retailing company AGL Energy has joined Tesla Motors and others to push for a range of policy measures, including tax incentives and emissions regulations, to accelerate the take-up of electric vehicles and tackle one of the country’s fastest-growing sources of greenhouse gas emissions,” they wrote in the article of April 6, 2016.

Crunching the numbers for corporate fleets: savings in store

Electric vehicles are poised to play a significant role in reducing carbon emissions in Australia. A recent report suggests that electric vehicles could reduce carbon dioxide from road transport by up to 47% by 2050.

To support the shift towards lower carbon transportation, AGL CEO Andy Vesey is one the first of what is hoped will be many CEOs to commit to electric vehicles within its company fleet.

“AGL has committed to have at least 10 per cent of our fleet vehicles electric by mid-2018 – a figure that can grow as more options become available in the Australian market,” Mr Vesey said.

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5 benefits of EVs in your fleet:

  1. Contributes to company carbon reduction targets
  2. Very low fuel costs
  3. Lower maintenance requirements than conventional cars
  4. Luxury car tax break and ACT stamp duty exempt
  5. Potential tax exemptions and rebates and potential incentives to install charging facilities.

AGL can take your organisation on the entire journey from understanding which electric vehicles to choose through to design and deployment of an energy solution to match. Learn more about AGL’s electric vehicle services.