Transitioning to electric commercial fleets has delivered not only environmental but financial benefits, according to research.
A survey of more than 300 US and UK senior decision-makers responsible for the electrification of 100 vehicle-sized fleets revealed 43% anticipated a reduced total cost of ownership due to the transition.
The study, conducted by Vanson Bourne, in conjunction with EV charging solutions firm EO Charging, also revealed more than half (53%) of fleets are now electrified on average – five years ahead of the 2030 petrol and diesel new vehicle phase-out.
In addition, a majority (84%) of organisations having at least partially introduced a net-zero transportation initiative, with over half (54%) pointing to cost savings/long-term financial benefits as the primary driver.
Public sector organisations are more than twice as likely to have a fully implemented net zero transportation initiative (47%) than the private sector (23%) too.
It also reveals the challenges for fleet operators, including eight in ten organisations (81%) stating policy fluctuations are undermining ability to develop long-term electrification strategies, while over half (54%) are not planning beyond the current administration in respective markets.
Uncertainty around energy markets and rising global tensions are also impacting long term planning, with 88% of respondents stating fluctuations in energy price make it harder to go electric. 80% of UK respondents pinpointed global tensions as raising risks around sourcing critical components such as EV batteries.
Richard Staveley, CEO at EO Charging, said:
“This research clearly highlights that commercial fleet electrification has now evolved from what was once primarily a legislative led initiative to meet environmental targets to a mainstream business strategy.
“Driven by seeing tangible cost efficiencies, organisations across multiple industries have long moved beyond small trials and pilot schemes to embrace electrification as a transformational business benefit.”
“Fleet electrification has reached a pivotal inflection point, as businesses seek further clarity at a governmental level to plan for the long-term and maximise the benefits they’ve seen from initial EV adoption. In the UK, the government’s Industrial Strategy marks positive steps in this direction with clearer mandates around policy timelines and decarbonisation targets.
“However, to scale with confidence businesses should make sure they are engaged with industry bodies, work closely with manufacturing and energy partners, and frequently review government guidance. Working in a collaborative manner will help ensure fleets are best poised to scale efficiently and realise the full promise of electrification.”
Image of report courtesy of EO Charging
