Electric vehicles are transforming the automotive landscape, but many fleet managers are hitting an unexpected roadblock: skyrocketing insurance premiums. While the long-term benefits of electrification are clear, the short-term insurance costs can be up to 25% higher than for traditional vehicles. So, what’s driving this trend?

In our latest episode Marc Spurling from Aon breaks down the complexities:

Why is EV Insurance So Expensive?
The insurance industry is grappling with what Aon calls "four megatrends"—weather, technology, trade, and people which complicate risk assessment for everyone. For EVs, this creates a few specific hurdles:

• Limited Historical Data: Compared to petrol or diesel cars with decades of claims history, EVs are still the new kids on the block. With less data to work from, insurers tend to play it safe and set higher premiums. As Marc puts it, "With limited data, trends are amplified into perceived substantial risks."
• Supply Chain and Repair Complexity: Modern EVs are essentially computers on wheels. A minor bump can damage sophisticated sensors or LIDAR systems, requiring specialist technicians and manufacturer-approved parts, both of which are in short supply. This complexity drives up repair costs and vehicle downtime, which in turn inflates insurance rates.

The Hidden Risk: Charging Infrastructure
Beyond the vehicles themselves, transitioning to an electric fleet introduces a new layer of risk that many fleet managers overlook: the charging infrastructure.

Property insurers are still cautious about the fire risks associated with EV charging, often imposing strict restrictions or hiking up premiums. Many businesses only discover these hurdles after they’ve started their electrification journey, leading to unexpected costs and delays. Furthermore, installing multiple charging points can strain a building’s power grid, and the space needed for a safe setup is often underestimated.

However, some forward-thinking companies are turning this challenge into a revenue stream. First Bus, for example, has created multi-use charging hubs that generate income by charging other vehicles during off-peak hours.

Is Data-Driven Insurance the Answer?
The idea that connected vehicle data would revolutionise insurance with pay-per-use models sounded promising, but the reality is more complicated.

Marc offers a sharp insight: "Data is the new oil, but crude oil needs to be refined to be useful, and the same goes for data." Early models that simply tracked mileage were too simplistic, three miles in central London carries far more risk than three miles on a rural motorway. Today, the focus is shifting to behavioural data to create a more accurate picture of risk.

What Are Smart Fleet Managers Doing?
Leading fleet managers aren’t waiting for the market to change; they’re taking control.

1. Embracing Early Adoption: Businesses already operating EV fleets are seeing the benefits of lower maintenance costs and improved reliability. As they build a positive risk profile, their insurance premiums are gradually coming down.
2. Practising Proactive Risk Management: Top performers work with specialised brokers to create tailored policies. By highlighting proactive measures like advanced driver training and vehicle monitoring, they can secure better terms.
3. Planning Infrastructure Early: A successful transition involves collaborating with property insurers and engineers before installing charging stations to address power, space, and safety requirements from the start.

The Road Ahead
Despite the hurdles, the future for electric fleets is bright. Advances in battery technology are reducing fire risks, and as the market matures, premiums are expected to stabilise.

Curious what goes into powering up the EV revolution? In the latest Auto Futurecast episode, we unpack the nuts and bolts of charging infrastructure with Asif Ghafoor, CEO of Be.EV.

Fast Facts from Our Conversation with Asif:

• Start-Up to Scale: Founded in 2021, Be.EV now operates across Greater Manchester, backed by £110 million from Octopus Energy Generation.
• Reality Check: Building charging sites isn’t plug-and-play—it involves site leases for 20-25 years, up to two years of development, and patient capital.
• Field Research: Be.EV’s team studies user behavior by spending hours in car parks, ensuring chargers fit people’s real routines.
• User Experience: Expectations have shifted:
• Early adopters loved to chat; today’s users just want quick, fuss-free charging.
• Supports contactless, app, and chip-and-pin payments to minimize friction.
• Auto-charge is the goal—a seamless, “just plug in and go” experience.
• Oasis Concept: The new Charging Oasis in Manchester breaks the petrol-station mold:
• Circular layout maximizes space and safety.
• Designed for how people actually behave during longer charging stops.
• Costs & Returns:
• £500K–£1M per site with a seven-year payback.
• Only 4% of cars are EVs now, but the real growth comes as numbers reach 30%.
• Lean core team (30–40 people); construction and maintenance are outsourced.
• Market Trends:
• Around 150 charge point operators in the UK—but consolidation is likely.
• Some seek site contracts first and hope funding follows; Be.EV secured funding up front for more stability.

Why It Matters:

• Cleaner Air: Cutting road emissions is core to Be.EV’s mission. Infrastructure is the foundation of a more sustainable transport future.
• Patience Required: Building for tomorrow’s demand means investing ahead of the curve and obsessing over the customer experience.

Want more?

We release a new episode every two weeks focussing on the latest trends in automotive, technology and the mobility space. Expect lots of talk around EVs, AI and AVs.

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The UK automotive market is at a turning point, with electric vehicles (EVs), new retail models, and Chinese competition reshaping the landscape. Ian Plummer, Commercial Director at Auto Trader, joined Auto Futurecast to share his perspective on affordability, consumer behaviour, and how retailers can adapt in this fast-moving environment.

⚡ EV Affordability and Adoption

• Price gap between ICE and EVs has narrowed from 36% to 23%.
• Greater model availability, especially under £30k, is driving demand.
• Used EVs are fuelling broader adoption.
• Salary sacrifice remains a powerful, underappreciated driver of uptake.

🔋 Multi-Life Vehicles and Residual Values

• EV depreciation steepened in early 2023, but stabilised once parity was reached with ICE.
• 2–5 year old EVs are now the fastest turning segment on Auto Trader.
• Longer lifecycles, refurbishment, and second-life battery value will underpin sustainable growth.

🇨🇳 Lessons from China

• China’s EV market is already at mass adoption—quality, affordability, and tech are givens.
• The new battleground is autonomous features, with “Level 2++” fast becoming the norm.
• Chinese brands are setting the pace in over-the-air updates, voice-first interfaces, and customer feedback loops.

🏪 The Future of Automotive Retail

• Despite challenges, UK retailers remain resilient, averaging 1.5% long-term profitability.
• Digital transformation and AI offer efficiency gains in finance, service booking, and lead management.
• Consumer-controlled booking tools (e.g., test drives) boost conversion by up to 50%.
• The biggest untapped opportunity? Retention of used car customers into aftersales and repeat purchases.

🧭 Key Takeaways

Retailers must rethink retention, embrace digital, and prepare for a more complex, multi-brand EV market. Success will come from meeting consumers where they are, whether on price, tech, or ownership flexibility.

Subscribe to catch up and listen to all of our episodes where we talk all things EV, AV and the innovative tech shaping the future of mobility.

The automotive industry is undergoing a profound transformation, and Lotus is navigating this shift with a distinct strategy that bridges its legacy and the future of electrification. Frederik Gollob, COO of Lotus Cars Europe, recently shared his vision on Auto Futurecast, revealing how the iconic British brand balances heritage with cutting-edge technology to serve a diverse customer base.

Lotus's Dual Strategy: Heritage Meets Innovation

• Two pathways for customer engagement:
  • Heritage Line: Iconic models like the Elise, Evora, and Emira (manual, V6-powered sports car).
  • Electrification Line: Premium EVs like the Eletre SUV and Emeya sports sedan.
• Balances traditional driving experience with cutting-edge electric performance.

⚡ Redefining the Driving Experience

• The Emeya transforms driving into a seamless, relaxed experience—even for speed enthusiasts.
• Over-the-air updates continuously improve vehicle performance and systems.
• Creates an evolving customer relationship similar to smartphone tech.

🏪 Retail Strategy: Dealer-First Approach

• Lotus remains committed to its dealer network, resisting a direct-to-consumer model.
• Belief that premium vehicles require tangible, in-person experiences.
• Dealers play a crucial role in showcasing craftsmanship and fostering strong customer relationships.

👨‍💻 Target Customer Profile

• Typically tech-savvy entrepreneurs, aged 40–60.
• Customers are highly informed and do extensive research before visiting a dealership.
• Lotus benefits from word-of-mouth advocacy from this knowledgeable customer base.

🌱 Optimism in the EV Market

• Positive outlook for premium EV adoption, especially in Europe.
• Tax incentives (e.g., Germany’s benefits for EVs under €100,000) support market growth.
• Aligns well with the needs and tastes of Lotus’s core demographic.

🧭 Lessons from Lotus’s Dual-Path Strategy

• A blueprint for legacy automakers:
  • Preserve traditional models.
  • Introduce modern EVs to broaden appeal.
• Strengthens brand loyalty, supports long-term growth, and meets diverse consumer needs.

Subscribe to catch up and listen to all of our episodes where we talk all things EV, AV and the innovative tech shaping the future of mobility.

The EV transition is well underway—but it’s not without turbulence.

While automakers race to innovate and new players enter the global stage, the electric vehicle (EV) landscape is increasingly clouded by confusion, mistrust, and misinformation. From viral myths about battery life to political narratives shaping public opinion, the EV sector faces challenges that go far beyond hardware and horsepower.

In this episode of Fake News, Real Cars, we sit down with Dan Caesar, CEO of Fully Charged, one of the world’s most influential platforms advocating for clean energy and electric mobility. Dan brings a refreshing, no-nonsense perspective to what’s really happening behind the scenes of the EV revolution. With his trademark clarity and insight, he unpacks the complex interplay between technology, consumer psychology, and global economics driving today’s electric vehicle movement.

What we cover in this episode:

1. Misinformation and media spin:
Dan opens up about the rising tide of anti-EV sentiment, particularly in the UK and US, where political agendas and media narratives are distorting public understanding. He highlights how organizations like Electric Vehicles UK are pushing back with data-driven, positive storytelling.

2. Global competition heats up:
With nearly 70 automotive brands now fighting for market share in the UK alone, Dan describes the current environment as “a game of musical chairs.” He also details how Chinese automakers are leveraging markets like Australia to prepare for broader global dominance—particularly in right-hand-drive territories.

3. The new EV buyer is digitally native:
Forget the dealership. Today’s EV customers are getting their information from YouTube, influencers, and peer reviews—not TV ads or glossy brochures. Dan explains how this shift in behavior presents both challenges and massive opportunities for brands to connect with new audiences.

4. Closing the perception gap:
Outdated myths around charging anxiety and poor range are losing their grip as real-world EV ownership proves otherwise. Improved infrastructure, falling costs, and practical experiences are gradually replacing fear with confidence.

5. Innovations on the horizon:
Dan explores promising new technologies like vehicle-to-grid integration and sodium-ion batteries—breakthroughs that could redefine both the economics and accessibility of EVs in the near future.

Why this episode matters:
The world is at an inflection point. As governments, manufacturers, and consumers move toward decarbonised transport, the battle for hearts and minds is as important as the battle for better batteries. Dan Caesar offers a grounded, experienced take on how the industry can cut through the noise and accelerate meaningful change.

Whether you're an EV enthusiast, a skeptic, or somewhere in between, this episode gives you the clarity and context to understand what’s really going on—and where things are heading.

If you’re interested in how the automotive sector is adapting to changing customer needs, technological innovations, and evolving financial structures, this episode is a must-listen. Here’s an overview:

1. Jaguar Land Rover Financial Services – Leveraging Partnerships

• Facilitate financing options for customers purchasing vehicles.
• Ensure liquidity through wholesale financing to support their retailer network.
• Adapt flexibly to changing market demands with innovative approaches to business models.

2. Leading Automotive Financing Beyond Transactions

• Transitioning relationships with third-party partners to drive innovation.
• Exploring risk-sharing possibilities within financing models.
• Ensuring partnerships truly lead the market and align with dynamic client needs.

3. Subscription Models and Vehicle Usage

• Subscription Services: JLR’s Pivotal offers premium car subscription models, particularly appealing to high-earning customers willing to pay for flexibility and no-ownership responsibilities.
• Premium Rental Models: For urban customers or part-time drivers, JLR explores premium rental options short-term. This ensures they accommodate both high-frequency users and those only taking occasional trips.
• Global Trials: JLR’s experiments in Germany and other markets highlight the ongoing development and exploration of scalable subscription models.

One of the key challenges discussed is the economics of subscriptions, particularly in light of significant depreciation in vehicles’ early life stages. JLR is experimenting with strategies to counterbalance this perception, ensuring long-term sustainability.

4. Electrification and New Business Models

• Changing Consumer Ownership Dynamics
• Vehicle Life Extension
• Repurposing BEV Batteries

5. Long-Term Client Relationships Through Service-Driven Experiences

• Extending engagement beyond sales with exclusive vehicle experiences, such as JLR’s Land Rover off-road sessions.
• Building robust service ecosystems that prioritise continuous service, repairs, and over-the-air updates.
• Innovating around modular vehicle designs, allowing features to be upgraded across an extended lifecycle, broadening a vehicle’s appeal to new customer segments.

6. Preparing for the Future of Mobility

• The role of data and software updates in maintaining vehicle desirability over time.
• Anticipating the needs of younger generations, who prioritise flexibility and access over ownership.
• The responsibility of OEMs to align internal structures, make EVs more sustainable, and develop cradle-to-cradle lifecycle models.

If you're in the automotive or mobility sectors, this episode is a must-listen. It provides actionable insights into the trends shaping our industry and what it takes to remain competitive in this fast-moving market.

Don't forget to follow to stay up to date with the latest industry news. If you've enjoyed this episode we'd love to have a review from you!

In this episode of Auto Futurecast, host Chris Kirby sits down with the CEO of MHP Consulting, Bodo Philipp to explore the evolving world of digital car buying, customer experience, and the role of immersive technology in shaping the future of mobility.

From online configurators and AI-guided finance tools to Apple Vision Pro-powered virtual test drives, this conversation dives into the challenges and opportunities OEMs face as customer expectations shift dramatically.

Key highlights include:

Digital Buying Complexity

• Online car sales are growing, but the process remains fragmented between research, test drives, and final purchase.
• Many OEM websites confuse rather than guide — unlike tech giants like Apple, which separate discovery and purchasing clearly.

Download the full report here: https://www.mhp.com/en/insights/what-we-think/online-car-sales-2025

Customer Journey Evolution

• MHP's research shows a 144% increase in consumers engaging with online car buying tools since 2020 with 22% of consumers now completing their car purchases digitally.
• True digital transformation requires addressing multiple "conversion gates" — key touchpoints that influence drop-off or sale.

Omnichannel Challenges

• Buying a car often involves three different entities: the OEM, the dealer, and the finance provider — adding layers of friction.
• Success lies in creating seamless transitions between digital and physical experiences (e.g., test drives, dealer visits).

AI & Conversational Commerce

• Future buying journeys may be guided by AI that helps match customer needs to leasing or ownership models.
• Large Language Models (like ChatGPT) could soon replace chatbots and become virtual automotive consultants.

Immersive Experience & XR Tech

• OEMs are already piloting Apple Vision Pro and VR tools to allow customers to walk around, inspect, and configure their car virtually.
• These technologies have led to a 15–20% increase in upselling optional features, with measurable business impact.

Finance Transparency

• Consumers want comparability and clarity— not just OEM-affiliated finance offers.
• Integrating third-party finance tools into online journeys can boost trust and conversion.

Not All Buyers Are Digital Natives

• While digital experiences are growing, older customers still prefer traditional journeys, proving the need for a hybrid approach.
• A one-size-fits-all digital journey risks alienating large customer segments.

Consistent Handover & Onboarding

• Post-sale vehicle onboarding is ripe for disruption — AR and AI can provide consistent, brand-aligned delivery and education experiences across markets.

Whether you're in automotive retail, digital transformation, or mobility innovation — this episode is packed with sharp insights and real-world examples.

Follow us to stay up-to-date with the latest in automotive innovation.

Join host Chris Kirby for an unmissable episode recorded at the Asset Finance Connect Summer Conference, where innovation meets insight. This special edition dives deep into the transformative forces reshaping mobility, finance, and operations — featuring candid conversations with leading voices in the industry.

Key Highlights:

The Future of Electric HGVs – Karim Haji, Managing Director at Scania Financial Services unpacks the challenges and slow adoption of electric HGVs in the UK, the critical role of charging infrastructure, and why depot-to-depot logistics may lead the EV charge.

AI as a Co-Pilot, Not a Replacement – Richard Huston, Managing Director & Co-Founder of VAMOS shares a grounded view on AI’s role in asset finance operations, how human-AI collaboration is transforming back-office workflows, and why full automation isn’t the goal — yet.

Synthetic Sales Agents & Smarter Journeys – Tony Lynch, Founder of CarPass.ai explores how conversational AI is revolutionising online sales experiences and predicts the decline of traditional websites in favour of AI-first interfaces.

Navigating the EV Transition – Dom Surlis, Specialist Consultant at Ayvens highlights the bifurcated EV market, where fleet adoption outpaces retail. He emphasises the challenges with residual values of EVs and notes that incentives like salary sacrifice are vital, but incomplete without used market solutions.

Driving Policy & Market Stability – Tom McLennan, Director of Policy & Public Affairs at BVRLA notes that market volatility, policy uncertainty, and infrastructure concerns continue to hamper EV growth. Their members are central to vehicle electrification in the UK, but are burdened by depreciation, uncertain demand, and changing policies.

From the evolving electric vehicle (EV) landscape to the practical and powerful applications of artificial intelligence (AI), this episode brings together expert perspectives on what’s driving change today and where we’re headed next.

This special episode of Auto Futurecast is packed with insights for OEMs, mobility startups, and EV enthusiasts seeking to understand the road ahead.