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
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.
The Right Fuel Card for the road ahead
Whether you’re transitioning to electric or operating a mixed fleet, our EV Charge Cards give you the flexibility to manage both fuel and EV charging expenses.
EV charge cards are a simple payment solution for businesses. They work similarly to our current fuel cards. Simply tap your RFID card against a reader to start and end your charging session. This eliminates the need to carry cash and you can avoid using a credit card which may incur costly interest fees.
With access to thousands of charging points and petrol stations, these cards bring unparalleled convenience and sustainability to fleets with electric, petrol and diesel vehicles. That's why, we think we have the best EV charging cards in the UK.
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.
