Judith Eadie Account Director Automotive Leasing - a LeasePlan brand specialising in fleet solutions for public sector and not for profit organisations.

Global organisation Manage in excess of 1.62 million vehicles worldwide The world’s largest fleet and vehicle management provider in terms fleet size Active in 33 countries worldwide United Kingdom Second largest fleet management provider in UK Over 165,000 serviced fleet vehicles including 50,000 commercial vehicles.

The evolution of alternative fuels and the fleet market. Government incentives are far from the only reason to choose ultra-low emission vehicles. Here we explain the evolution of alternative fuels and the market.

“ Alternative fuels are still a small part of the overall car market but they are also the fastest-growing”

Plug in grant The above graph focuses on a (large) subset of the Alternative Fueled vehicle (AFV) market: the number of cars eligible for the Plug-In Car Grant. This is probably, (SMMT's figures) the best way of showing the rise of clean cars.

Where are we now? 4,000 39 Vehicle Category Aug-16 Reg Aug-15 % growth from year ago YTD 2016 YTD 2015 YTD market Share Plug-in Pure electric 336 385 -12.7% 6,634 6,076 12.2% Other electric 865 586 47.6% 16,989 12,064 31.1% Hybrid Petrol/electric 1,302 926 40.6% 30,024 24,155 55.0% Diesel/electric 49 107 -54.2% 947 2,636 1.7% All alternative fuels 2,508 1,918 30.8% 53902 44,165 3.2% Diesel 38,581 38,645 -0.2% 806,214 791,919 48.0% Petrol 40,551 38,497 5.3% 820,683 798,285 48.8% 23,109 cars eligible for the Plug in Grant (Jan – Aug 2016) ------ 70,543 since April 2012 To put these numbers in perspective, in the UK there are Approx. 30.9m cars and 3.7m vans. SMMT: http://www.smmt.co.uk/2016/09/august-2016-ev-registrations/ 4,000 Plug-in Vans Reg. UK March 2016 (Approx) 39 Plug-in Models Reg. UK March 2016 (Plus variants)

“Every three minutes, somewhere in the world, somebody purchases an electric vehicle” Source: http://press.renault.co.uk/press-release/ede099e0-5ee5-4775-a0b6-f10a662fe82a Every 3 minutes 167,271 barrels of oil used every 3 minutes 174 planes worldwide take off every 3 minutes 750 babies born every 3 minutes And as an aside researching these facts: Bill Gates makes 45,000 dollars every 3 minutes. But my favourite 136,896 litres of wine that are drunk every 3 minutes.

Mitsubishi Outlander PHEV 21,500 19,945 16,100 14,099 12,066 2 MAKE & MODEL Q2 2016 Q1 2016 Q4 2015 Q3 2015 Q2 2014 1 Mitsubishi Outlander PHEV 21,500 19,945 16,100 14,099 12,066 2 Nissan Leaf 13,000 12,469 11,219 10,441 9,310 3 BMW i3 4,457 4,065 3,574 2,943 2,484 4 Renault Zoe 3,339 3,918 3,327 2,401 2,062 5 Mercedes Benz C350e 3,337 1,898 628 128 19 6 Tesla Model S 3,300 2,826 2,087 1,346 1,047 7 Toyota Prius Plug in Hybrid n/a 1,651 1,580 1,501 1,439 8 Volkswagen Golf GTE 1,970 1,359 1,025 350 9 Vauxhall Ampera 1,261 1,272 1,279 1,250 10 Audi A3 e-tron 1,445 1,218 1,033 570 List of top 10 vehicles on the road either currently or previously offered with Government plug-in grants – as of Q4 2015 Source: http://www.racfoundation.org/media-centre/ultra-green-cars-on-the-road-lates-Q4-2015 (based on DVLA) The registration data also shows that Mitsubishi's Outlander PHEV continues to be the best-selling plug-in vehicle in the UK with more than 21,500 models sold by the end of Q2 2016. The latest figures show that the Nissan Leaf maintains its position as the most popular electric car in the UK, with almost 13,000 vehicles registered by the end of June 2016. In third place BMW i3 with 4,457 UK registrations across both the all-electric and range-extender variants, Fourth place and the Renault Zoe with 3,339 UK sales by the end of the June 2016. Fifth place the increasingly popular Mercedes Benz C350e - 3,337 sales Sixth place The Tesla Model S - with more than 3,300 units - is in fifth place, Plug-in hybrids have rapidly taken an increasing share of the electric car market, a trend that only looks set to continue with more models confirmed to go on sale in the UK within the next year. From accounting for less than a quarter of plug-in sales at the beginning of 2014, within two years they represent almost two thirds the overall number of plug-in cars sold by 2016.

A perceived barrier that doesn’t really exist Vehicle Range A perceived barrier that doesn’t really exist

Range BMW i3: 125 miles Nissan Leaf: 155 miles (2017 version, est. 250) Kia Soul: 132 miles Renault Zoe: 100 miles VW Golf E 100 miles Ford Focus E 100 miles Tesla 0-60mph in 2.5 seconds - 315 miles BMW also offers a range-extender with a 38bhp petrol engine, fitted purely to develop electricity for the battery pack. This increases the range up to 276 miles, emitting just 12g CO2/km. Note: This week, Tesla announced the release of the Model S P100D with Ludicrous mode — nothing more than a simple upgrade to a 100kWh battery — and the world went wild. Why? Because this upgrade enables the Model S to travel from 0 – 60 mph in 2.5 seconds, giving it the fastest acceleration of any currently available production car (the slightly quicker Ferrari LaFerrari and Porsche 918 Spyder are no longer available with that coveted New Car Smell). Like all electric vehicles, that more powerful battery delivers 100% of its dual-engine torque immediately, pushing the four-wheel-drive saloon past records heretofore the domain of million-dollar supercars. But while the world is focusing on 2.5 seconds, a very small number, there’s another, much larger number that is ultimately more important — one that pushes Tesla into the domain of mid-sized family vehicles. And we’re talking about range — 315 miles of it.

Range 66% of trips are less than 5 miles Average trip length - 7.0 miles Average commute to work length - 8.8 miles Average business trip length - 20.1 miles Statistical Release - National Travel Survey 2014 - Gov.uk

Increased user adoption drives... An expansion of the charging infrastructure Greater driver acceptance as both perceived and actual fears/risks are overcome Increased remarketing data helps leasing companies firm up residual value calculations (a key driver of leasing cost)

Charging infrastructure A perceived barrier - does it really exist? As OLEV have covered off, charging points are no longer an issue.

Charging infrastructure SLOW CHARGERS 2015 2,228 ZAP STATS – 1 JUNE 2016 11267 CONNECTORS 6176 DEVICES FAST CHARGERS 5,946 4037 LOCATIONS 630 LAST 30 DAYS RAPID AC CHARGERS 542 Source: https://www.zap-map.com/statistics/ RAPID DC CHARGERS 1,265

Tesla Supercharger network

Residual values The Leasing Market

Residual values Tesla Model S, with a 230 mile range, ensures its 3 year / 60,000 mile value is c. 43% This is almost exactly the same as a BMW M535D Sport

Shouldn’t we wait for FCVs? The Alternatives Shouldn’t we wait for FCVs?

In Summary

In summary The last three years has seen a huge surge in the demand for alternatively fuelled vehicles Each of the top 10 manufacturers now offer a alternative fuelled option as part of their range Range, infrastructure and affordability all continue to improve

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