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Blog

Fleet electrification: What you need to know before acquiring electric vehicles for your fleet

Mon, 21/06/2021 - 07:04
Go Green

Before acquiring a fleet of Electric Vehicles (EVs), companies and fleet managers must answer several questions to ensure they make an informed decision that will not harm their business in the future.

Fleet electrification: What you need to know before acquiring electric vehicles for your fleet - Frotcom

Many fleet managers and companies are considering switching to electric vehicles or have already started to buy them together with charging equipment due to greener energy, government incentives, and reduced fuel costs.

However, it might be better to think in the long-term instead of acting in the near term when it comes to electrifying your fleet. As concluded by the Rocky Mountain Institute report called "Steep Climb Ahead: How Fleet Managers Can Prepare for the Coming Wave of Electrified Vehicles", electrifying a fleet involves a more organized and comprehensive process that affects all functions of an organization. Although fleet operations may comprise only 3% of all registered vehicles, because of their economies of scale, fleet operations of this type will profoundly influence how the entire transport sector eventually adopts and uses EV's.

There are pros and cons to having an electric fleet, depending on some factors. Some companies may benefit from cost reduction and environmental impact, but it may not provide the necessary return on investment to justify the change for others. Before switching to electric vehicles, be sure you have the answer to the following questions:
 

  • Is there a master electric meter that tracks consumption and costs?
  • How to know if long-term operating cost reduction makes up for the higher upfront investment?
  • How to ensure that there are charging stations along the drivers' routes?
  • How many EV charging infrastructures will be required, and of what type? Who will build them?
  • Which entity will pay for it? The fleet division or all departments that use or benefit from EVs?
  • Does the cost to build and implement EV charging infrastructures come from an overhead budget or capital fund? How will my company project the amortization or depreciation of assets?
  • Since electric vehicles do not require fuel cards, what is the energy equivalent?
  • Are there national or regional incentives that you can apply to lower your capital investment?

Suppose you are thinking of taking the next step towards electrifying your fleet. In that case, it is also vital to carry out a careful comparative analysis between the costs of a fleet with internal combustion engines and the costs of acquiring/implementing an electric fleet. You should also include the maintenance costs to clarify the benefits and challenges of implementing an electrified fleet.

There is plenty to consider before switching to an EV fleet, and understanding the benefits and challenges is vital to get the most out of your vehicles. Many other factors, such as where you are located, typical driving distance, and start-and-go frequency, also play an essential role in whether electrification is suitable for your fleet. 

Post tags:
  • Frotcom
  • Vehicle tracking
  • Fleet Intelligence
  • Fleet management
  • Electric vehicles
  • EV
  • Electric Energy
  • Charging points
  • Zero-emission vehicles
  • Reduce harmful emissions

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Fleet Decarbonization: Start a plan to reduce your fleet emissions
European Commission proposes new CO2 emission targets for new city buses and trucks
UK implements new zero-emission Vehicle Excise Duty
Electric Buses: China's success story
Breaking down the barriers to large-scale electric vehicles adoption

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