Fleet operators are leading the charge in vehicle electrification, with around 75% of all new electric vehicles (EVs) going to fleets.
This shouldn’t come as a surprise, since fleets stand out as having the robust financial capacity needed to make large-scale EV investments. Fleets also can benefit from well-established, highly scaled charging networks, ensuring smooth day-to-day operations without the range anxiety that continues to concern some individual motorists.
Because of this, the EV transition can be an appealing prospect for fleet managers. In fact, research from PwC suggests that as many as 77% of fleet operators who have adopted EVs would have done so regardless of government incentives.
However, this isn’t to say that electrification comes without its own set of challenges. In fact, fleet managers now need to be much more strategic and conscious of any hurdles in their electrification journey, bearing in mind potential challenges surrounding maintenance costs and electric vehicle residuals.
Moving Beyond 1:1 Replacements
To ensure that fleet electrification is an operational success, every investment needs to be carefully planned and optimised. When planning an electrification journey, fleet managers should remember that it is not always a simple matter of replacing current vehicles with their electric equivalents.
Fleet managers must consider the operational needs of their business and may need to adjust their fleet mix to meet those requirements post-electrification. Sometimes, changing the composition of a fleet is what’s needed, rather than simple one-for-one vehicle swaps.
For example, replacing a diesel van that runs 12 hours a day and only uses half its cargo space may not work well with a single electric vehicle due to charging downtime. A better approach might be to introduce two smaller electric vans that can alternate between deliveries and recharging. This strategy ensures consistent delivery throughput and avoids any delays due to battery recharging.
Flexibility with Long-Term Rental
Fleet managers also need to consider how EV-powered fleets operate in real-world conditions and adjust their vehicle parcs accordingly. Given that real-world conditions can be difficult to predict, experimentation here is key for fleet operators to discover what works best for their fleet.
Experimentation does, however, require vehicles. This is where long-term rental provides an ideal opportunity to test different vehicle setups and fleet compositions without the burden of ownership. This flexibility ensures that fleets can scale quickly or downsize depending on market demands, adapting seamlessly to the broader rollout of EV technology.
Guaranteeing Critical Charging Infrastructure
As mentioned earlier, fleets don’t face the same range anxieties as individual motorists. Though, that’s not to say that vehicle range and charging infrastructure can be regarded as a ‘done deal’ or an afterthought. For a fleet to successfully transition to EVs, managers need to conduct thorough reviews of their routes, charging needs, and infrastructure. This is particularly the case for fleets that operate rural routes or are present in areas where charging demand outpaces supply.
For smaller fleets, apps and audit tools can help mitigate charging challenges by mapping out available charging stations to better plan routes. However, for larger fleets, a more comprehensive infrastructure analysis may be needed to ensure that charging setups are future proof, contingencies are in place, and partnerships are agreed to guarantee comprehensive charging provision.
This is another area where fleets can benefit from the support offered by operational leasing providers – in the UK, Leasys’ strategic partnerships with companies such as Allstar and Octopus Energy provide tailored charging solutions and help businesses to stay in control of spend. Taking advantage of solutions such as these allows fleet managers to get the most out of their investment, while supporting transition in a way that suits their business.
Proactive Problem Solving for a Smooth Transition
Issues like fleet composition and charging infrastructure are just two pieces of the puzzle. Other challenges will arise – to address them, fleet managers need to plan proactively so they can minimise downtime and maximise fleet performance.
This means a fair amount of up-front work and hard thinking by fleet managers, but the results are often worth it – electrification completely reshapes the future of fleet management. Electrification often opens up new opportunities and efficiencies, allowing fleets to tap into next-gen technologies like advanced telematics to optimise fleet performance and efficiency.
Anticipating challenges and incorporating them into your EV strategy not only helps you meet sustainability goals – it also improves your bottom line. As with any investment, fleet managers should apply ample forethought to guarantee the highest possible returns from this opportunity.
Author: Matthew Boswell, UK Managing Director at Leasys
