Ali Khan, Head of UK E-Mobility at Vestel, says the electric vehicle (EV) revolution is in full swing, and the transformation presents a golden opportunity to expand business and drive new revenue streams for electrical wholesalers and their customers.
As an EV charger supplier direct to the trade, as well as an OEM partner for many of the UK’s energy and fuel providers, Vestel UK is witnessing a rapid and significant increase in the demand for EV chargers.
The EV market overall has seen exponential growth over the past few years. The Society of Motor Manufacturers and Traders (SMMT) reported that UK electric car sales reached record levels last year, with over 300,000 battery electric vehicles (BEVs) sold. That is a massive 50% increase from the previous year.
Almost one in five (19.8%, SMMT figures) of all new vans hitting the UK roads in the previous 12 months were electric – up 70% on the year before. That is a monumental shift in the type of transport being used to move goods and service providers around and outlines the huge potential for the market; there are some 6 million commercial vehicles in daily use in the UK.
The rise in EV sales is not just a statistic but a clear indication of the future of transportation that is driving demand for chargers in homes and business premises. You’re already ahead of the game if you stock residential and light commercial (7kW-22kW) chargers. But if you don’t yet stock chargers, you and your customers are missing out on one of the most significant growth categories the electrical industry has seen for decades.
Charging demand
The increasing number of electric commercial vehicles drives the need for reliable and accessible charging infrastructure to new heights. For electricians and electrical wholesalers, this trend opens a vast array of opportunities to supply and install EV chargers across various sectors.
Thanks to government incentives on EV purchasing, including low road tax, low or zero charges in low emission zones, massively reduced benefit-in-kind tax for company cars, and consumers looking to be part of a greener future, the reasons for consumers to go electric are mounting. At-home is the most convenient charging solution for EV owners with a driveway or garage space. It is also the cheapest, particularly if you benefit from a low overnight tariff – which can be as low as 10p/kWh.
An estimated 20% of UK homes have direct on-property space for a charger, equating to around five million homes. Add in the number of commercial flats and apartments looking to install car park-based space-by-space charging solutions, and the potential residential customer base will be huge.
Businesses also recognise the benefits of installing EV chargers on their premises. This move is not only environmentally friendly but also makes good business sense. It visibly enhances brand Image and sustainability credentials, enables customer and employee charging benefits, and attracts environmentally conscious customers and partners. Businesses can offer charging as a free, subsidised, or loyalty-based service to customers, helping to drive repeat business.
It is not unusual for SMEs to monetise their EV chargers by offering them for public use. With the right pricing strategy, this can become a fully automated and profitable revenue stream, particularly in high-traffic areas. The UK government’s push towards zero emissions helps here, too, with grants and tax breaks available for businesses that install EV chargers, helping reduce installation costs and maximise returns on investment. With over 2m small businesses actively trading in the UK plus site branches of larger organisations, there is significant market potential for chargers.
Opportunity
For electricians, this means an increasing number of installation projects, many of them part-funded by government grants to businesses. From single-family homes to apartment complexes, SME and industrial estates, electrical wholesalers are perfectly positioned in the supply chain. Stocking a single charger that works equally well in the residential and SME spaces, capable of being configured from 7kW to 22kw and single or three phase, reduces stock SKUs and makes for the simplest proposition for electrical installer customers. The Libra model launching this month is a cutting-edge EV charger with flexible set-up options that are viable for a wide range of installations. For larger wholesalers and projects, Vestel can offer volume discounts, charger customisation, and OEM branding.
The rapid growth of the EV market presents an unprecedented opportunity for electricians and electrical wholesalers. By expanding your knowledge and offerings in the EV charging space, you can tap into a lucrative market that promises sustained growth and significant business potential. Together, we can power the future of transportation and drive the transition to a sustainable world.
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