Hitachi ZeroCarbon has partnered with MUFG bank on the global transition to electric vehicles (EV) by removing technical and capital constraints to decarbonisation.
Through the partnership, fleets will benefit from strategic EV guidance and support as well as access to low-cost capital that protects long-term asset value.
It also aims to address the biggest barriers to electrification faced by fleets all around the world: capital availability and change management.
The firms said that across the industry, fleet operators have less than a decade to decarbonise, but the cost of replacing diesel vehicles, installing new infrastructure or upskilling workers “can delay or prevent businesses from reaping the benefits and revenue opportunities of the EV transition”.
MUFG’s global financial strength and presence aims to “ensure that fleets can scale their electrification seamlessly across markets”, while Hitachi’s platform “helps operators to better understand, manage and optimise their assets, for example electric vehicles, batteries or charging infrastructure”, they said.
Fleets will also maintain full operational control of their services while benefitting from the financial and technical expertise of both partners. Hitachi’s managed service maximises the residual value of assets, ensuring they can be reused or recycled at the end of the lease period, protecting investment returns for fleet operators, it said.
The model has already worked with UK bus operator, First Bus, who is aiming to decarbonise its 4500-bus fleet by 2035, and has already purchased more than 1000 EV batteries, and benefitted from managed services for 1500 buses to enable electrified operations.
First Group, the parent company of First Bus, has saved more than £20M in deferred capital, and is anticipating more than £40M in future savings.
Hiroki Miyashita, Managing Director of Business Co-creation Division at MUFG, said:
“We have a proud history of working closely with Hitachi, and our shared values and business philosophies have driven fundamental transformation across countless industries. We are committed to addressing the barriers in the way of societal progress, and combining our expertise with Hitachi will help the commercial fleet ecosystem decarbonise at speed, and realise the real-time benefits of electrification far more quickly.”
Ram Ramachander, Chief Executive Officer at Hitachi ZeroCarbon, said:
“Cost remains the greatest hurdle to fleet electrification. We’re removing that barrier by giving fleet managers the confidence that decarbonisation is not only achievable, but financially viable.
“With access to financing through partners like MUFG, operators can accelerate progress toward their net zero targets while unlocking new revenue streams. By helping customers optimise their assets, we’re enabling long-term investment returns and creating meaningful commercial value. It’s a win-win, advancing both sustainability and profitability, and making fleet electrification a practical reality.”
Hitachi ZeroCarbon is sponsoring and will be attending the inaugural Transport + Energy Fleet Electrification Forum on 9 July at Warwick Conferences. Find out more about the event here.
Image from Shutterstock
