Company cars policy & trends PROLIBIC workshop 8/09/202 Intro Promoco Within the PROMOCO project, the aim was to gather information on the impact of company cars on daily mobility. Prolibic In the PROLIBIC project, company cars will be further explored from a more sustainable transport use perspective. The aim is to analyse the impact of recent fiscal policy measures on the environmental-friendliness of company cars. 2
Research setup Approach PLANET model does not include company cars Alternative study to analyse the evolution of company cars with respect to environmental-friendliness Key questions Which policy measures have been taken to improve the environmental-friendliness of company cars? Measures 200 New measures 202 What is the impact of these measures? 3 600000 Trends pre-200 500000 400000 300000 200000 00000 Evolution share of cars registered in name of a company in total amount of newly registered cars Source: FGOV Mobility and Transport Febiac, 2008. 0 992 993 994 995 996 997 998 999 2000 200 2002 2003 2004 2005 2006 2007 Company Total 350,000 303,43 Evolution car fleet LT rental contracts 300,000 250,000 200,000 203,352 20,633 29,25 225,269 235,574 248,854 270,574 299,557 Source: Renta, 2009 & Renta, 200. 50,000 00,000 07,803 23,566 42,97 72,822 50,000 997 998 999 2000 200 2002 2003 2004 2005 2006 2007 2008 2009 4
New measures in 200 As from 0/0/200: Adjustment of solidarity contribution on CC in function of the CO2 emission level of the vehicle Adjustment of the fiscal deductibility of company cars in function of the CO2 emission level of the vehicle Calculating the benefit in kind based on CO2 emission level instead of on fiscal horsepower Economic crisis 2009!! 5 Effects: fleet size 6% 5% 4% 5.3% Average growth Belgian company car fleet 4.5% 3% 3.3% 2%.8% % 2007 2008 2009 200 Source: CVO Barometer 20, based on Febiac (200). 6
6 Evolution CO2 gasoline <60g/km 5 4 3 2 2004 2005 2006 2007 2008 2009 Source: Renta, 200 7 Evolution CO2 diesel <45g/km 5 45% 4 35% 3 25% 2 5% 5% 2004 2005 2006 2007 2008 2009 Source: Renta, 200 8
Average CO2 in 20 Average CO2 (g/km) in total fleet 0 companyowned cars avg company leased private new fleet 20 42 26 33 23 80 60 40 20 00 80 60 40 20 0 companyowned cars avg company leased private Total fleet 20 70 38 58 58 Average CO2 (g/km) in new fleet 20 60 40 20 00 80 60 40 20 9 Trends 200-20 Growing attention for the environment triggered by: Fiscal pressure on CO2 emissions Corporate social responsability Financial crisis Trends related to company cars Increase company car fleet growth Decrease average company car CO2 emission levels Leased CO2 < company-owned CO2 0
New measures in 202 As from 0/0/202: Benefit in kind: combination of fuel type, CO2 and list price: Disallowed expenses: 7% of BIK New in 202 New index solidarity contribution: New registration tax (0/03/202): FL, private and companyowned only 2
! Unchanged since 200: corporate tax deductibility CO 2 emission CO 2 emission CO 2 emission Fiscal deductibility gasoline/lpg/cng 0 electric diesel (g/km) (%) (g/km) (g/km) 0 20 0-60 0-60 00 6-05 6-05 90 06-5 06-25 80 6-45 26-55 75 46-70 56-80 70 7-95 8-205 60 >95 >205 50 3 Effects: new registrations Q 20 vs 202 35,000 30,000 25,000 20,000 5,000 0,000 5,000-20Q 202Q 20Q 202Q company-owned leased electricity 4 77 5 59 CNG 3 5 4 LPG 2 5 4 4 diesel 27,544 26,293 27,898 29,509 gasoline 4,09 4,557 2,843 3,057 4
New registrations per CO2 class gasoline vs diesel 0 9 8 7 6 5 4 3 2 20Q 202Q 20Q 202Q company-owned leased >250 7% 2% % % 22-250 4% 2% 9-220 5% 3% % % 6-90 5% 2% 3% 4% 3-60 29% 3% 43% 35% 0-30 3% 35% 47% 48% <=00 4% 5% % 0 9 8 7 6 5 4 3 2 20Q 202Q 20Q 202Q company-owned leased >235 2% 206-235 3% 2% % 76-205 7% 3% 2% 46-75 2% 2 3% 9% 6-45 4% 4% 52% 5% 86-5 23% 3 32% 39% <=85 5 % of premium 0 9 8 7 6 5 4 3 2 20Q 202Q 20Q 202Q company-owned leased non-premium 74.5% 70.8% 72. 72.% premium 25.5% 29.2% 28. 27.9% Assumption: premium = Aston Martin, Audi, Bentley, BMW, Ferrari, Fisker, Infiniti, Jaguar, Lamborghini, Land Rover, Lexus, Lotus, Maserati, Maybach, McLaren, Mercedes, Porsche, Rolls- Royce and Tesla 6
Remarks Recent analysis, but recent developments as well High % of cars delivered in 202Q are ordered in 20 Effects attributable to Behavioral change? Technological progress (e.g. CO2) combination of measures & external factors 7 Future prospects What fleet managers thought in 2008/9/0 Will you use these vehicles in coming 3 years?: Total Fuel efficient vehicles LPG vehicles Flex Fuel or biofuel vehicles Electric vehicles Hybrid vehicles 2 3 4 5 6 7 8 9 200 2009 2008 8
vs reality end 20: 0.60 % of company car fleet at end 20 0.50 0.40 0.30 0.20 0.0 0.00 BEV PHEV HEV leased 0.04% 0.0 0.58% company-owned 0.02% 0.0 0.353% 9 Conclusions Company car fleet seems to become cleaner Encouraged by 2 waves of fiscal stimuli Although result of combination of factors Adoption of alternative fuels in CC fleet is marginal Challenges: High % diesel Induced kms 20