Over a third of Aussie small businesses willing to switch to electric vehicles

electric vehicles

A new survey by business loan comparison site Small Business Loans Australia reveals that 39 per cent of Australian SMEs are keen to invest in electric vehicles as a way to meet customer or employee expectations and 30 per cent would make the switch in an effort to boost brand credibility.

Furthermore, 28 per cent of businesses want to be seen as ‘early adopters’, while 16 per cent would invest purely because they see the purchase of petrol vehicles as a ‘bad look’. Furthermore, 32 per cent believe that petrol cars have a limited lifespan and would opt for an electric vehicle to ensure a longer lifespan.

The research found that a large proportion of businesses are willing to switch to eco-friendly vehicles for reasons beyond government incentives and reducing environmental impact as the competitive nature of Australian SMEs has made them more conscious of their brand perception, thus looking for ways to improve their credibility. With 62 per cent of customers saying they feel an emotional connection with the brands they buy, the report noted that businesses need to be in tune with the beliefs of their customers to form and nurture a connection.

“While each state has their own needs and goals, it is evident that businesses are ready to make the switch to electric vehicles for several reasons. In an economic climate where businesses are striving to gain new customers and retain current staff, as well as bearing a corporate social responsibility around sustainability, investing in electric vehicles is an effective way to achieve those goals,” Alon Rajic, Founder and Managing Director of Small Business Loans Australia, said.

It was earlier revealed that from January to June this year, 8.4 per cent of new vehicle purchases were electric, already a 120.5 per cent increase from last year.

The research revealed that 71 per cent believe that purchasing electric vehicles over petrol cars will help alleviate the current climate crisis, with 44 per cent of business owners believing the switch will have a small impact and 27 per cent believing there would be a significant impact in the reduction of emissions. Only 29 per cent of business owners do not believe the climate crisis can be helped with the purchase and use of electric vehicles.

“Our research shows most businesses surveyed believe electric vehicles will contribute towards a climate change solution,” Rajic added. “Businesses should consider making the switch to electric vehicles for their company fleets and encourage employees to do the same through novated leasing and other purchase avenues.”