WITH more and more electric vehicles arriving on the motoring scene businesses need to take stock of what's on offer.

The potential savings are considerable for companies and employees alike.

And with most car makers planning plug-in versions of key models in the future, it's time to get to grips with this new technology.

Analysis carried out by fleet management company Arval on the real life performance of electric vehicles shows that businesses and individuals need to dig deeper into the data to establish which type of electric vehicle will bring the most value.

Whilst miles per gallon data can be very useful in assessing a conventional petrol or diesel vehicle, it can be misleading when selecting an electric vehicle.

Businesses need to assess vehicles by a completely different set of rules.

The five primary considerations are:

Determinehow the vehicle is used for every employee before choosing a technology. Include the commute, business trips, personal and leisure trips and consider the distance travelled per journey, the type of road used and the frequency of each trip. Then determine the best technology to use.

The company car can be an emotional benefit. Whilst there is an ever growing number of electric vehicles to choose from, the one that may best suit a particular employee may not be the preferred model. Whilst electric vehicle design is becoming more mainstream, manage employee expectations carefully, especially if the company car is being used as a tool for attracting key employees.

Many employees are attracted to electric hybrid vehicles as a company car because they attract much lower benefit in kind taxation. However, unless the vehicles are regularly charged they will run primarily on the petrol engine. This may mean that the company ends up spending more on fuel costs than anticipated.

Encourage regular charging by discussing where and how often the employee will recharge the vehicle. Charges can take between three and eight hours to complete, ideally, check that a suitable domestic electricity supply is readily available to encourage regular charging.

Electric vehicle technology is now performing well. However, change is constant as new technologies and opportunities emerge. Opting for a flexible lease or contract hire package can protect businesses from changes in the resale value, and also allow for change within a short two or three year cycle.