BUSINESS
FINDING BALANCE : FORMULA 1 TECHNOLOGY AND URBAN DRIVING – WHO IS LEADING THE WAY ?
BY STEVE JACOB , TAX PARTNER AT WILKINS KENNEDY MAIDSTONE
IT HAS LONG BEEN UNDERSTOOD THAT FORMULA 1 HAS BEEN A LEADER IN ACCELERATING MOTOR TECHNOLOGY ON THE TRACK . WHILST THIS HAS HELPED INCREASE SPEEDS AND THE SUCCESS AND POPULARITY OF THE SPORT , A CLEAR AND POSITIVE SPIN OFF HAS BEEN THE IMPACT ON THE MOTOR INDUSTRY . THERE ARE MANY EXAMPLES OF FORMULA 1 INNOVATION FINDING ITS WAY ONTO THE CAR FORECOURT AND THIS HAS ALLOWED THE ONGOING DEVELOPMENT AND IMPROVEMENT OF THE CARS WE DRIVE IN OUR DAY TO DAY LIVES – TYRE IMPROVEMENTS AND SEMI-AUTOMATIC GEARBOXES ARE TWO EXAMPLES THAT COME IMMEDIATELY TO MIND .
Following F1 we now have FE , or to give it its more precise title , Formula E . Formula E brings fully electric vehicles into the arena and with this , we are now seeing a race to improve and develop technology in the electric high performance racing car world .
As we have seen in the more traditional car racing sector , a valuable by-product of this is the transferring of the technological improvements into the manufacturing sector . Indeed the President of the FIA – the Federation Internationale de L ’ Automobile – has referenced the clear link , referring to Formula E as the perfect showcase for new electric vehicle technologies . The clear indication is that the development and advancement of clean engine technology will be transferable and with direct impact in densely populated areas .
A number of recognised car manufacturers are responding perhaps to the opportunity FE provides but they could be more astutely recognising that it offers an opportunity to adapt , as countries seek to look at ways to reduce pollution . Whilst Tesla catch the eye we are seeing increased involvement in Formula E from the likes of Audi , BMW , Mercedes and clear technological advancements are following . Battery life , which has been a limiting factor for many , is improving significantly and this will without doubt help to increase the appeal of electric vehicles . We are already seeing an increase in their use . Countries are certainly encouraging this change . Norway ’ s stated intention is to ban fossil fuel by 2025 , India is considering being all electric by 2032 and China is already the largest electric vehicle market in the world . These dates may seem a little off but in reality for this sector they are very close .
What of the UK ? Electric cars are starting to appear and manufacturer ’ s campaigns are focused on the benefits . Electric charging points are now more prominent . The tax position is also being tilted in favour of electric cars for company car drivers . From April 2020 the taxable benefit for an employee driving an electric car will be based on just 2 % of the list price of the vehicle compared with a rate that will rise from the current rate of 9 % to 16 % in 2019 . This is a clear indicator that the Government is committed to a move away from fossil fuels and is seeking to provide stronger incentives to purchase lower emission vehicles . There are already tax breaks for the supply of electricity and the provision of charging points .
Will the future of cars be electric ? It seems highly likely that we are now in the midst of a significant shift in the sector . Whilst the technology needs to continue to evolve , the interaction between the manufacturing sector and Formula E will without doubt continue to accelerate this process .
If you would like more information about how electric cars may be a benefit to your fleet , or you would like any advice relating to benefit in kind or company cars , please contact your local Wilkins Kennedy office in Ashford , Canterbury , Maidstone , Orpington and Sandwich .
Local offices :
Ashford : 01233 629 255 / Canterbury : 01227 454 861 Maidstone : 01622 690 666 / Orpington : 01689 827 505 Sandwich : 01304 249 997
enquiries @ wilkinskennedy . com www . wilkinskennedy . com
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