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How choosing petrol full hybrid over diesel improves air quality and whole life costs...

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Clearer skies aheadWith tougher air standards on the way, petrol-electric hybrids may be the answer

SPECIAL REPORT: TOYOTA/LEXUS

ince 2001, CO2 has been the main focus of efforts by governments and manufacturers to reduce emissions, due primarily to concerns about global warming. However, it is local air quality, affected by a cocktail of emissions, that more

immediately affects how we live and breathe. The process to encourage reduced vehicle CO2 is well

established – operators face excise duty, other tax and BIK penalties for running vehicles with higher emissions.

European legislation also requires manufacturers to ensure vehicles meet certain emission standards and they must reduce total emissions through specific average CO2 emissions targets or face financial penalties.

However, there is growing evidence that Euro6 legislation and penalties will not be sufficient to tackle the major health issues associated with poor air quality, making it likely that more stringent national or local penalties for the most polluting vehicles will be introduced. For fleet operators and drivers, this could have a significant financial impact, both in direct charges and for residual values.

The London Assembly highlighted these health concerns, revealing that the estimated annual health cost of air pollution in the UK is £20bn – twice as much as obesity1. Combustion exhaust alone causes nearly 5,000 premature deaths each year2.

Despite using catalytic converters and particulate filters, diesel-engined vehicles are a leading source of air pollution through emissions of NOx and particulate matter and diesel fumes have been confirmed as a carcinogen1.

Unlike diesels, petrol-electric hybrids emit no particulates and produce virtually zero NOx. They achieve this without the need for additives or expensive and often unreliable diesel particulate filters to service or replace.

A IR QUALIT Y

There is a unique opportunity to improve air quality with full petrol hybrid electric cars and, with more than five million sales, Toyota and Lexus has demonstrated global leadership in these powertrains, with more experience and expertise than any other vehicle manufacturer.

Petrol full hybrid models can be powered by just the elec-tric motor, by the petrol engine, or by both together. The system intelligently selects the power source most appro-priate for the driving circumstances:

Electric motor power – used when starting and will operate automatically at any speed when conditions allow. Silent, with no emissions and no fuel use.

Petrol engine – can seamlessly take over when travelling at higher speeds.

Electric motor and petrol engine combined – the electric motor will provide an instant, smooth power boost when required.

Unlike so-called mild hybrid, where the electric motor’s role is only to assist the engine when accelerating, Toyota and Lexus full hybrid models will be powered by their elec-tric motor alone for much of the time in urban areas, using energy stored in the battery that is captured by both regen-erative braking and using any surplus engine power.

This is also more efficient than the system employed by range extenders, which require the petrol motor to run continuously once the battery has been depleted.

Toyota and Lexus believe that petrol-electric hybrid models are the right solution for today’s driver and through a range of 11 distinct models have demonstrated that they have a broad application and their wider use offers significant health and cost benefits.1 London Assembly Air Pollution in London Report Dec 2012.2 COMEAP Committee on the Medical Effects of Air pollution.

“Unlike diesels, petrol-electric hybrids emit no

particulates and

virtually zero NOx”

S

HYBRID R ANGE

LE XUS IS 300HP11D price From £29,440CO2 emissions From 99g/km

BIK 11%NOx from 2mg/km†

Lexus has focused on petrol-electric hybrid technology and feels it can offer fleet operators more than the most efficient diesels.

For starters, the IS 300h SE offers CO2 emissions from 99g/km. Combined with

the 3% diesel supplement, this puts it five BIK tax bands lower than the BMW 320d EfficientDynamics automatic (comparing like for like) and six bands lower than the automatic version of the Mercedes-Benz C220 CDI Executive SE.

The Lexus’s fuel economy figures are evenly matched with diesel rivals as the slightly lower figure of 65.7mpg is offset by the lower pump price of petrol.

The IS 300h SE is in the 11% BIK tax band for 2013/14, compared with 16% for the BMW. For the driver, it means annual BIK tax payments could be £50 a month lower (for a 40% taxpayer) and employers’ national insurance contributions £213 a year less by choosing the Lexus.

TOYOTA AURIS TOURING SPORTS HYBRID ESTATE

Yaris HybridP11D from £15,441BIK 10%CONOx from 6mg/km†

2 from 79g/km

Smallest full hybrid on the market

PriusP11D from £21,790BIK 10%CONOx from 6mg/km†

2 from 89g/km

Defines hybrid for many people

Prius Plug-In Hybrid*P11D £33,290 BIK 5%CONOx from 1mg/km†

2 49g/km

Plug-In version offers longer zero-emissions range

Prius +P11D from £28,290BIK 11%CONOx from 6mg/km†

2 from 96g/km

The first seven-seat hybrid

CT 200hP11D from £21,940BIK 10%CONOx from 3mg/km†

2 from 82g/km**

Premium compact hatchback

CO

GS 300h/GS 450hP11D £31,440/£44,810BIK 13%/20%

NOx from 11.5mg/km†2 from 109g/km

Efficiency and high performance

2 199g/km

LS 600hP11D £99,475BIK 31%CONOx from 15mg/km†

Refined luxury V8 hybrid saloon

RX 450hBIK 21%P11D £44,310CONOx from 7mg/km†

2 145g/km

Full-size SUV, 300bhp with low emissions

*excluding £5,000 plug-in car grant **available March 2014†The NOx figures are sourced from official EU regulated test results and are provided for comparability purposes and may not be representative of all operating conditions

Auris HybridP11D from £20,340BIK 10%BIK 10%CO2 from 84g/kmNOx from 6mg/km†

C-segment hatchback, built in Britain

P11D price £21,440

NOx from 6mg/km†2 emissions From 85g/km

BIK 10% The new Auris Touring Sports Estate has the same wheelbase as the Auris hatchback, but is 285mm longer, making room for 530 litres of luggage with the rear seats in position and 1,658 litres – the biggest in the sector – with the seats folded, thanks to the hybrid battery being located under the floor.

Toyota claims that features such as a one-touch folding rear seat system, twin-level floor, two-way tonneau cover and roller-type luggage net also contribute to making the car more functional than rivals.

Sharing interior and trim upgrades with the hatchback, the TS has a quiet and unruffled gait for relaxed progress, although noise levels rise when the transmis-

. dedeen si rewop nehw sver hgih ta gninnips rotom eht sdnes nois

CO

ybrid powertrains have become part of the mainstream in the 13 years since Toyota launched the first full hybrid production car. Today, many hybrids have come to market and most are based on existing petrol and diesel

models, making it easier to compare like-for-like costs.Petrol-electric hybrids have led the growth of so-called

alternative fuel vehicles in the past few years, despite the recent introduction of diesel-electric hybrids.

Two factors have resulted in a shrinking premium for hybrid over conventional diesel-engined cars: it has become more expensive to engineer new diesel engines to meet current and future emissions regulations and the increase in demand for petrol-electric hybrid models and improve-ments in technology has helped to drive down the cost of components associated with the hybrid drive system.

Diesel engines will increasingly need exhaust after-treat-ment to ensure they will meet Euro6 emissions require-ments, which includes a costly particulate filter and could also need a reservoir containing a chemical such as AdBlue that needs replenishing during services.

Some urban-based fleets have also encountered prob-lems with diesel particulate filters becoming clogged. The filters have to be regenerated periodically, and this only happens when the vehicle is running at motorway speeds for a sustained period.

In fleets whose vehicles rarely venture out of town, it has resulted in expensive repairs.

Petrol-electric hybrids don’t need many of the components needed to power a diesel car, and this often shows in reduced SMR costs. In fact, even the energy recapturing function of

The cash case for hybridLower BIK rates and SMR costs make hybrids more cost-effective for urban fleets

DIESEL vS PE TRoL-ELEcTRIc

a hybrid car, which feels like strong engine braking, reduces wear on brake pads and prolongs their life.

It means that when comparing a similar-powered diesel car with a Toyota or Lexus full petrol-electric hybrid, there are wide-ranging cost advantages.

First, hybrid cars are not subject to the 3% supplement on benefit-in-kind tax, so even the lowest-co2-emitting conven-tional diesel cars would fall into a higher BIK tax band than their equivalent hybrids.

For example, comparing the latest Toyota Auris Hybrid Touring Sports with the Ford Focus 2.0 TDci estate, both cars have a similar power output and P11D value (see table).

The 136bhp Auris compares well with the 140bhp Focus for power and its P11D value is £500 higher. However, the Toyota attracts BIK tax at just 10%, compared with 19% for the Focus. This means significantly lower BIK tax liability for drivers, while employers benefit from lower class 1A National Insurance contributions.

Although diesel cars have become more enjoyable to drive, with good torque characteristics combined with strong fuel economy, petrol-electric hybrids also have appealing on-road behaviour. There is the lack of diesel ‘clatter’ on start-up and periods of silent running around town, while the extra boost from the electric motor when accelerating can deliver a similar feel to a diesel car.

For many fleet operators, and particularly for those where company cars are based in and around towns, petrol-electric hybrid models are increasingly becoming the cost-effective choice.

Toyota Auris Touring Ford Focus 2.0 TDCi Sports Hybrid Icon estate Zetec

Employee’s costsP11D value* £21,440 £20,940co2 85g/km 124g/kmBIK Percentage charge 10% 19%Benefit in kind £2,144 £3,979Tax Payable at 20%/40% £429/£858 £796/£1,591Employer’s costsFirst year vED rate £0 £0Subsequent vED £0 £105class 1A NIc £0 £549Running cost** 34.92p per mile 39.4p per mile - Depreciation 24.28p per mile 25p per mile - SMR costs 2.45p per mile 3.22p per mile - Fuel cost 8.19p per mile 11.17p per mileTotal Running cost** £20,952 per cycle £23,640 per cycleResidual value £6,875 £5,938

* P11D includes basic list price, delivery and vAT** Does not include class 1A NIc, vED or insuranceData at three years/60,000 miles from KeeResources as published in the running costs section of www.fleetnews.co.uk, September 2013.

How THE y STAcK uP

The Toyota has a higher P11D value …

… but at 19%, the Ford’s BIK rate is nine points higher

85g/kmof co2 is emitted by the

Toyota Auris Hybrid Touring Sports

124g/kmthe co2 emissions on the

comparable Ford Focus 2.0 TDci estate

n Compare whole life costs of running diesels to petrol hybrids at: brilliantforbusiness.co.uk/cost-calculator

H

Reprinted from FleetNews

ybrid powertrains have become part of the mainstream in the 13 years since Toyota launched the first full hybrid production car. Today, many hybrids have come to market and most are based on existing petrol and diesel

models, making it easier to compare like-for-like costs.Petrol-electric hybrids have led the growth of so-called

alternative fuel vehicles in the past few years, despite the recent introduction of diesel-electric hybrids.

Two factors have resulted in a shrinking premium for hybrid over conventional diesel-engined cars: it has become more expensive to engineer new diesel engines to meet current and future emissions regulations and the increase in demand for petrol-electric hybrid models and improve-ments in technology has helped to drive down the cost of components associated with the hybrid drive system.

Diesel engines will increasingly need exhaust after-treat-ment to ensure they will meet Euro6 emissions require-ments, which includes a costly particulate filter and could also need a reservoir containing a chemical such as AdBlue that needs replenishing during services.

Some urban-based fleets have also encountered prob-lems with diesel particulate filters becoming clogged. The filters have to be regenerated periodically, and this only happens when the vehicle is running at motorway speeds for a sustained period.

In fleets whose vehicles rarely venture out of town, it has resulted in expensive repairs.

Petrol-electric hybrids don’t need many of the components needed to power a diesel car, and this often shows in reduced SMR costs. In fact, even the energy recapturing function of

The cash case for hybridLower BIK rates and SMR costs make hybrids more cost-effective for urban fleets

DIESEL VS PE TROL-ELECTRIC

a hybrid car, which feels like strong engine braking, reduces wear on brake pads and prolongs their life.

It means that when comparing a similar-powered diesel car with a Toyota or Lexus full petrol-electric hybrid, there are wide-ranging cost advantages.

First, hybrid cars are not subject to the 3% supplement on benefit-in-kind tax, so even the lowest-CO2-emitting conven-tional diesel cars would fall into a higher BIK tax band than their equivalent hybrids.

For example, comparing the latest Toyota Auris Hybrid Touring Sports with the Ford Focus 2.0 TDCi estate, both cars have a similar power output and P11D value (see table).

Although diesel cars have become more enjoyable to drive, with good torque characteristics combined with strong fuel economy, petrol-electric hybrids also have appealing on-road behaviour. There is the lack of diesel ‘clatter’ on start-up and periods of silent running around town, while the extra boost from the electric motor when accelerating can deliver a similar feel to a diesel car.

For many fleet operators, and particularly for those where company cars are based in and around towns, petrol-electric hybrid models are increasingly becoming the cost-effective choice.

Toyota Auris Touring Sports Hybrid Icon Auto

£21,440 85g/km 10% £2,144 £429/£858

£0 £0 £296 40p

Ford Focus Estate 2.0 TDCi Titanium 6Spd

£22,740124g/km19%£4,321£864/£1,728

£0£105£59646p

Employee’s costsP11D value* CO2

BIK % BIK Value of CarBIK @ 20%/40% 2013/14 Employer’s costsFirst year VED Subsequent VED Employer Class 1A NI 2013/14 Running cost per mile**

25p 26pDepreciation per mile £23,810 £27,335Running cost 3 yrs**

* P11D includes basic list price, delivery and VAT** Does not include Class 1A NIC, VED or insuranceData at 3 year/60,000 miles as published in the running costs section of fleetnews.co.uk, January 2013.

HOW THE Y STACK UP

The Toyota has a higher P11D value …

… but at 19%, the Ford’s BIK rate is nine points higher

85g/kmof CO2 is emitted by the

Toyota Auris Hybrid Touring Sports

124g/kmthe CO2 emissions on the

comparable Ford Focus 2.0 TDCi estate

Compare whole life costs of running diesels to petrol hybrids at: brilliantforbusiness.co.uk/cost-calculator

H

Reprinted from Fleet News

The 136bhp Auris compares well with the 140bhp Focus for power and its P11D value is lower. The Toyota attracts BIK tax at just 10%, compared with 19% for the Focus. This means significantly lower BIK tax liability for drivers, while employers benefit from lower Class 1A National Insurance contributions.

2.45p 3.22pSMR per mile7.72p 10.79pFuel per mile

30.89% 30.27%Residual Value %

Prius has proved reliable and durable for Cathedral Hygiene

“The Prius wins out for us ... its reliability and low running costs outweigh any higher initial costs”

44Number of Prius models run by Cathedral Hygiene

Not many fleet managers will happily keep a car on the road for a quarter of a million miles, but then John Smith does not manage your average fleet.

The service manager at Cathedral Hygiene, Smith is responsible for the running, maintenance and replacement of 44 Toyota Priuses. The hybrid’s reputation for reliability was one of the elements that attracted him, but that’s far from the whole story.

“Back in 2004, the company bought its first Prius as a conscious decision to become a greener fleet,” says Smith. “We tried some other hybrid models, and we’ll always consider and evaluate any new car on the market, but the Prius wins out for us thanks to its reliability and low running costs that outweigh any higher initial costs.”

When the first Prius joined the Cathedral Hygiene fleet in 2004, the company’s policy was to replace its petrol and diesel-powered cars at 100,000 miles. Sales staff could easily achieve this within two years and the knock-on effect of changing cars so often was some-thing Smith identified as needing a new approach.

After the initial period of using a Prius, it became clear to Smith that he could extend the life of the vehicles on the fleet to 150,000 miles. A Prius on the Cathedral Hygiene fleet will complete this standard mileage before it’s even considered for replacement. Smith says: “We have several cars with more than 150,000 miles on the clock. Some use a little oil, though nothing out of the ordinary, so we reckon we’ve had the best out of them by this point.

“However, we did have one Prius that we kept for four years that clocked up more than 240,000 miles without any problems. We

remarket our cars at four years old simply so they still have a value when they go to auction. This is another positive for the Prius as there is a ready market for used models, even ones with high mile-ages, so the residual values are strong.”

The sales and management teams at Cathedral Hygiene both use the Prius and are very happy with it, says Smith.

However, he explains this was not always the case: “There was a reluctance to switch to the Prius in the early days because it’s a hybrid and some [thought] it wasn’t a ‘proper’ car. “Now that everyone is used to the Toyota, they like them a lot and many of our team say they would happily buy one with their own money, which is as big an endorsement as you can get.”

Smith cites the Prius’s ease of driving as one of the reasons Cathedral Hygiene’s staff was won round.

He says: “It’s light and simple to operate, which makes it stress-free, which is a very important consideration when our drivers are covering large annual mileages.”

He adds that the Prius shows no drop-off in performance, economy or battery charge, even after significant mileages.

Smith uses fleet software to monitor the reliability, downtime and costs of every vehicle. This informs him when a car is liable to be sold on, but also gives him a detailed insight into how durable the Prius is.

“We find the Prius very quickly cancels out the initial higher cost to buy compared to some rivals,” adds Smith. “We get a very good service from our local Toyota dealer when buying and servicing the cars. “In fact, if we could buy hybrid vans to add to the fleet, we would.”

CASE STUDY: John Smith, service manager, Cathedral Hygiene

National Management

Stuart Ferma National Fleet Sales Manager National 07901 528 482 stuart.ferma@tgb.toyota.co.uk

Lee Giddings Fleet Support Specialist National 01737 367 009 fleetrequests@tgb.toyota.co.uk

Liz Adams Fleet Account Co-ordinator National 01737 367 009 fleetrequests@tgb.toyota.co.uk

Public Sector & Motability

Charlie Holcomb National Public Sector & Motability Manager National 07713 214 412 charles.holcomb@tgb.toyota.co.uk

Contract Hire and Rental Manager

Steve Allenson National CHL & Rental Manager National 07788 914 890 steve.allenson@tgb.toyota.co.uk

Technical Operations

Simon Calado Field Technical Operations Manager 07787 560 128 simon.calado@tgb.toyota.co.uk

Fleets operating over 500 vehicles, regional CHL and rental

Jake Miller Regional Fleet Sales Manager Central 07713 214 411 jake.miller@tgb.toyota.co.uk

Paul O’Connor Regional Fleet Sales Manager Scotland, North and Northern Ireland 07764 249 745 paul.o’connor@tgb.toyota.co.uk

Robert Bryant Regional Fleet Sales Manager South West 07798 661 286 robert.bryant@tgb.toyota.co.uk

Stephen Craig Regional Fleet Sales Manager South East 07899 066 376 stephen.craig@tgb.toyota.co.uk

Fleets operating 25 to 500 vehicles

Colette Mansell Area Fleet Sales Manager North West 07713 210 796 colette.mansell@tgb.toyota.co.uk

Victoria Clark Area Fleet Sales Manager West Midlands 07788 913 780 victoria.clark@tgb.toyota.co.uk

Lisa Keeton Area Fleet Sales Manager East Midlands & East Anglia 07713 214 418 lisa.keeton@tgb.toyota.co.uk

Jane O’Connell Area Fleet Sales Manager West 07584 684 447 jane.o’connell@tgb.toyota.co.uk

Sarah Murphy Area Fleet Sales Manager South West 07788 914 892 sarah.murphy@tgb.toyota.co.uk

Jason Duncan Area Fleet Sales Manager South East/North 07713 214 419 jason.duncan@tgb.toyota.co.uk

David Stoole Area Fleet Sales Manager South East/South 07584 100 329 david.stoole@tgb.toyota.co.uk

Our specialist national fleet team

Clean up and save thousands with petrol full hybrid

Reduce CO2, NOx and eliminate particulate emissions whilst saving thousands of pounds by switching from diesel to petrol hybrid. Challenge us to prove it with our personalised financial health check.

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Arrange a free personalised fleet financial health check at your local business centre, online at brilliantforbusiness.co.uk/hybrid or call 0844 701 6186

National Management

Stuart Ferma National Fleet Sales Manager National 07901 528 482 stuart.ferma@tgb.toyota.co.uk

Lee Giddings Fleet Support Specialist National 01737 367 009 fleetrequests@tgb.toyota.co.uk

Liz Adams Fleet Account Co-ordinator National 01737 367 009 fleetrequests@tgb.toyota.co.uk

Public Sector & Motability

Charlie Holcomb National Public Sector & Motability Manager National 07713 214 412 charles.holcomb@tgb.toyota.co.uk

Contract Hire and Rental Manager

Steve Allenson National CHL & Rental Manager National 07788 914 890 steve.allenson@tgb.toyota.co.uk

Technical Operations

Simon Calado Field Technical Operations Manager 07787 560 128 simon.calado@tgb.toyota.co.uk

Fleets operating over 500 vehicles, regional CHL and rental

Jake Miller Regional Fleet Sales Manager Central 07713 214 411 jake.miller@tgb.toyota.co.uk

Paul O’Connor Regional Fleet Sales Manager Scotland, North and Northern Ireland 07764 249 745 paul.o’connor@tgb.toyota.co.uk

Robert Bryant Regional Fleet Sales Manager South West 07798 661 286 robert.bryant@tgb.toyota.co.uk

Stephen Craig Regional Fleet Sales Manager South East 07899 066 376 stephen.craig@tgb.toyota.co.uk

Fleets operating 25 to 500 vehicles

Colette Mansell Area Fleet Sales Manager North West 07713 210 796 colette.mansell@tgb.toyota.co.uk

Victoria Clark Area Fleet Sales Manager West Midlands 07788 913 780 victoria.clark@tgb.toyota.co.uk

Lisa Keeton Area Fleet Sales Manager East Midlands & East Anglia 07713 214 418 lisa.keeton@tgb.toyota.co.uk

Jane O’Connell Area Fleet Sales Manager West 07584 684 447 jane.o’connell@tgb.toyota.co.uk

Sarah Murphy Area Fleet Sales Manager South West 07788 914 892 sarah.murphy@tgb.toyota.co.uk

Jason Duncan Area Fleet Sales Manager South East/North 07713 214 419 jason.duncan@tgb.toyota.co.uk

David Stoole Area Fleet Sales Manager South East/South 07584 100 329 david.stoole@tgb.toyota.co.uk

Our specialist national fleet team