Octopus Electric Vehicles is set to spearhead the “EV revolution” with £650 million having now been raised thanks to a new agreement with Pollen Street Capital.
The new agreement will see the investment firm allocate £150 million of funding to Octopus’ EV branch to finance the organisation’s flagship EV salary sacrifice offer. The EV salary sacrifice offer enables drivers to save between 30 to 40% every month on a brand-new electric car.
This will help increase the number of EVs on the UK roads – a necessity to ensure a smooth transition to clean mobility ahead of the 2030 internal combustion engine (ICE) sale ban on vehicles.
The number of EVs on UK roads has continued to surge with the latest data from New Automotive having shown that EV sales experienced a 60% year-on-year increase, growing to make up 16% of the market. This market share is set to rise as, according to the Society of Motor Manufacturers and Traders (SMMT), there were 1.1 million EVs on UK roads in April 2023, a figure that is since expected to have grown to 1.2 million.
Octopus will look to support this uptake and provide additional means to incentivise the adoption of EVs.
“Drivers are increasingly seeing the benefits of switching out old gas guzzlers for electric cars. They are great to drive, better for the planet and can save over £1,000 a year in fuel. With demand soaring, we need manufacturers to continue to increase volumes,” said Fiona Howarth, CEO of Octopus Electric Vehicles.
“With this demand, the UK is ever more attractive for EV charging investment and a destination for new electric car brands. With an amazing heritage in automotive here in the UK, we’re proud to be able to create new jobs in today’s upgraded, greener car market. And as Pollen Street’s commitment shows, leadership from the finance sector can make a real difference.”
Matthew Potter, partner at Pollen Street Capital, said: “We are excited to partner with Octopus Electric Vehicles to support the expansion of their salary sacrifice scheme. Octopus are an innovative business which has gone from strength to strength and we are delighted to support their next phase of growth.”
In other EV-related news from Octopus Group, Current± reported in late May 2023 that Octopus Investments was to allocate £50 million to Northern Ireland-based EV chargepoint operator Weev to address the shortage of charging infrastructure in Northern Ireland.
In a statement, the company said that the volumes of EV chargepoints in Northern Ireland are disproportionately low in comparison to the rest of the UK, with only 20 public chargepoints per 100,000 people – a third of the UK’s average at 60.