Vodafone UK’s EV Adoption Journey
Vodafone UK began its transition toward EV adoption for company cars in 2019, reaching the milestone of its 300th EV in June 2025. The company is now progressing toward its goal of converting its entire company car program, approximately 1,000 vehicles, to BEVs by 2026. This initiative was launched in response to strong employee feedback requesting that EVs be included among company car options.
In 2023, Vodafone UK partnered with Arval to promote EV adoption through a Salary Sacrifice scheme and internal education programs. Employee education has played a critical role in accelerating EV adoption across the organization.
Vodafone UK: Founded in 1984. The UK subsidiary of the global Vodafone Group, headquartered in the UK. One of the country’s largest mobile network operators, serving over 27 million customers.
Arval: Founded in 1989. A wholly owned subsidiary of BNP Paribas, providing corporate leasing services. Supports both SMEs and large enterprises by optimizing vehicle operations while reducing risk.
With Arval’s support, Vodafone UK has advanced its EV transition in a structured and phased manner.
2019: Introduction of PHEVs, followed by the start of BEV adoption
2020: Fleet composition, BEVs 16%, PHEVs 29%, gasoline vehicles 55%
2021: Gasoline vehicles removed from company car options
2023: PHEVs removed from company car options
2026: Target set to convert all company cars to BEVs
In line with its commitment to achieving zero emissions by 2030, Vodafone UK had originally planned to eliminate gasoline vehicles by 2027. However, with Arval’s support, the company is now aiming to bring this transition forward by one year, targeting full BEV adoption by 2026. This plan includes all PHEVs introduced before 2023, which are scheduled to be fully replaced with BEVs by 2026.
Salary Sacrifice Scheme
Launched in 2023, the Salary Sacrifice scheme allows employees to use EVs through pre‑tax payroll deductions. Under contracts with their employer, employees can access new EVs at a lower cost. For companies, the scheme offers four key benefits:
Enhances talent attraction and retention as an employee benefit
Supports corporate decarbonization strategies through EV adoption
Vehicle management operations are handled by Arval
Delivers strong cost efficiency for both employers and employees
Progress of EV Adoption in the UK
In the UK, car manufacturers have been required to comply with CO2 emissions standards since 2009. These standards were originally defined at the EU level, and even after the UK completed its EU withdrawal transition period on December 31, 2020, the regulations were retained as part of domestic law.
In 2011, the UK government introduced the Plug-in Car Grant as an incentive scheme to promote electrification. This program provides a subsidy that is deducted directly from the purchase price of an EV. As the EV market has expanded, both the subsidy amount and eligible vehicle categories have been gradually revised.
Plug-in Car Grant
Different subsidy schemes are available depending on vehicle type, including electric motorcycles, trucks, taxis, small vans, large vans, and wheelchair-accessible vehicles
Example: small vans are eligible for subsidies of up to £2,500
From 2020 onward, the UK government further strengthened its policies and launched a comprehensive, structured strategy to support the transition to zero-emission mobility.
Phase-out of internal combustion engine vehicles: sales of new gasoline and diesel cars are scheduled to end by 2030, while hybrid vehicles will be phased out by 2035
Zero Emission Vehicle (ZEV) Mandate: manufacturers are required to increase the share of EV sales each year, starting at 22% in 2024 and reaching 100% by 2035. Vehicles that do not meet the requirement are subject to a penalty of £15,000 per unit
Charging infrastructure development: since 2022, the government has invested £381 million through the Local Electric Vehicle Infrastructure (LEVI) fund, aiming to install 100,000 public charging points by 2030. Home charging subsidies are also available, covering up to 75% of costs (capped at £350). In addition, from 2023, public chargers are required to meet new standards, including over 99% uptime, contactless payment support, and a minimum charging power of 8 kW for standard chargers
Local Electric Vehicle Infrastructure (LEVI)
A UK government program designed to support local authorities in England in collaborating with the charging infrastructure industry, with the goal of accelerating the rollout and commercialization of local charging infrastructure.
Source: Source: Created by Aakel Inc. based on data from Zapmap (SMMT)
Due to the influence of EV promotion policies, the EV share is expected to grow approximately fourfold from 2021 to 2025 (2.26% → 8.19%). This growth will be driven primarily by BEVs, which are projected to increase about 4.5 times, while PHEVs are expected to grow about 2.8 times over the same period.
The Relationship Between the UK and the EU
Even after Brexit, EU policies continue to have a significant impact on the UK’s EV market. In December 2023, the UK government and the EU agreed to extend trade rules for EVs until the end of 2026. This agreement helped avoid a situation where a 10% tariff would be applied to EV and battery transactions and canceled the planned 2024 revision of the Rules of Origin. By maintaining the current local content requirements for vehicle production in the UK and EU, the UK government avoided up to £4.3 billion in additional costs.
This agreement is also expected to promote EV-related trade between the UK and the EU. Such collaboration is a key factor for strengthening the UK’s industrial competitiveness toward carbon neutrality through investments in EVs, batteries, and supply chains.
The UK government continues to pursue policies that support domestic production of batteries and EVs. So far, over £2 billion has been invested in this sector, with an additional £4.5 billion planned over the next five years. These initiatives aim to strengthen supply chains and enhance national competitiveness in the EV future.
Rules of Origin
According to the post-Brexit Trade and Cooperation Agreement (TCA), for EVs to be exempt from tariffs, a certain percentage of parts must be sourced from the UK or the EU.
For EVs and batteries, the first increase in content requirements was planned for January 1, 2024, and the final one for January 1, 2027. However, due to the COVID-19 pandemic, geopolitical risks, and supply chain disruptions, the UK and EU agreed to postpone the 2024 revision. The current rules will remain in place until the end of 2026.
It was also agreed that no further revisions to the Rules of Origin will be made until 2032, providing long-term stability and predictability for the entire UK EV industry.
2025 Commission’s Automotive Package
In December 2025, the European Commission announced a new legislative package called the “2025 Commission’s Automotive Package.” This package aims to revise CO2 emission standards for cars and vans. While maintaining the goal of zero emissions by 2035, it introduces more flexibility for the automotive industry.
2035 target: 100% CO2 reduction (zero emissions) → 90% reduction (the remaining 10% can be offset through credits)
Eligible vehicles: previously only EVs and FCVs (hydrogen vehicles) → now includes HVs, PHEVs, and ICE vehicles under certain conditions
2030 CO2 target for commercial vans: reduced from 50% to 40%
As of January 2026, there is no visible impact of this EU policy revision on the UK market.
Our Case Study: EV Deployment for Corporate Fleets in Japan
At Aakel Inc., we provide comprehensive support for the transition to EVs for corporate fleets, covering:
Transition simulation
Introduction of EVs and chargers
Electrical installation
Subsidy support
Charging optimization
We support the entire process, from initial deployment to daily operation.
In 2023, Okayama Gas Co., Ltd. launched a three-party collaboration project with Mitsubishi Auto Lease Corporation and Aakel Inc., aiming to explore future EV business opportunities.
As part of this initiative, Okayama Gas is also promoting the electrification of its company vehicles.
Challenge: Simultaneously achieving two needs
Smart charging of EVs that does not interfere with daily operations
Allowing certain company vehicles to freely start/stop charging while individually monitoring charging times and kWh amounts
Some company vehicles could not have standardized charging hours due to their purpose, requiring a separation of control between smart-charged vehicles and those needing flexible charging times and monitoring.
Solution: Different charging control settings per charger using AAKEL eFleet and AAKEL eFleet Billing
Smart charging to avoid operational disruption provided by AAKEL eFleet
Free control over charging with individual monitoring of time and kWh provided by AAKEL eFleet Billing
By configuring these settings per charger, it became possible to apply different controls and monitoring methods within a single location with multiple chargers.
Because AAKEL eFleet Billing is not a public charging service (like destination or en-route charging), it also supports detailed needs such as:
Providing charging as an employee benefit
Offering charging for existing customer visitors
Providing charging to business partner visitors
[Release of “AAKEL eFleet ver.1.1” – Launch of eFleet Billing – Calculate EV Charging Fees and Provide to Service Operators, Japanese only]
AAKEL eFleet addresses diverse operational needs and challenges related to the introduction and operation of EVs for corporate vehicles including buses, taxis, trucks, pool cars, and sales cars.
▶ Service Details: [AAKEL eFleet]
In addition, Aakel Inc. has supported new EV business development for energy companies, automotive firms, public transport operators, and other corporations.
Through total solutions and consulting, we meet a wide range of corporate EV needs, from commercial vehicles like buses and trucks to company fleets.
With deep expertise in the power sector, Aakel is able to propose optimal solutions to diverse challenges. We leverage this knowledge and our international network to offer research and consulting services in the mobility field.
Want to understand potential business opportunities in overseas EV markets
Need concise, easy-to-understand EV research reports for internal use
Considering new EV-related business development in Japan
