For a century, internal combustion engine (ICE) vehicles were the centre of operations in the medium and heavy-duty fleet vehicle sector; today, however, the outlook has begun to change. More fleet management teams are realising something else: going green can also be more profitable.
According to BloombergNEF forecasts, there will be more than 500 million electric passenger vehicles and 40 million commercial electric vehicles by 2040. Battery electric vehicles are on the rise, opening the field to a wide variety of electric vehicles of different sizes and types, such as electric trucks, vans, buses and even tractors. There is a growing awareness that the use of electric vehicles can bring benefits for both fleet managers and drivers of these vehicles. These benefits include reduced operating costs and increased safety levels, while the negative impact of fleets on the environment is reduced.
Why are sustainability and electrification a top priority?
With the increasing emphasis on meeting sustainability targets and the approaching deadlines, two things have to be prioritised in fleet management: preparation for electrification and fleet optimisation.
For a century, internal combustion engine (ICE) vehicles were the centre of operations in the medium and heavy-duty fleet vehicle sector; today, however, the outlook has begun to change. More fleet management teams are realising something else: going green can also be more profitable.
According to BloombergNEF forecasts, there will be more than 500 million electric passenger vehicles and 40 million commercial electric vehicles by 2040. Battery electric vehicles are on the rise, opening the field to a wide variety of electric vehicles of different sizes and types, such as electric trucks, vans, buses and even tractors. There is a growing awareness that the use of electric vehicles can bring benefits for both fleet managers and drivers of these vehicles. These benefits include reduced operating costs and increased safety levels, while the negative impact of fleets on the environment is reduced.
Why are sustainability and electrification a top priority?
Over the past decades, work has been done on the goal of reducing the environmental impact of the transport industry. In 2020, this topic was in the spotlight, especially due to battery electric vehicles. The impetus behind this shift comes from significant improvements in battery technology and overall cost reductions. New government emission mandates, funding initiatives and public demand for zero-emission technologies lay the groundwork for battery electric vehicles to dominate the transport industry.
While other clean fuel technologies may be developed in the coming years, all-electric vehicles represent the most positive development today. By generating zero exhaust emissions, they have, on average, a much lower impact on the environment and, as renewable energies continue to evolve, so too will these vehicles. Electric vehicles also offer the potential to improve fleet utilities. Because the cost per kWh of electricity and maintenance costs are cheaper compared to the equivalent running costs of internal combustion engine vehicles, electric vehicles tend to have a lower total cost of ownership.
It should be noted that many fleet management teams are opting for electrification for more reasons than just compliance with emissions mandates. Guided by a sense of social responsibility, financial incentives or both, a large number of organisations have drafted their own sustainability targets.
See also: The definitive guide to fleet electrification
Switching to electric
To adopt the use of battery electric vehicles, a number of steps need to be taken, e.g. contacting the electricity company; but the first task is to determine where it is worthwhile to electrify.
Geotab offers a free service called the Electric Vehicle Adoption Assessment (EVSA) to determine which internal combustion engine vehicles in the fleet can be replaced with an electric model, in order to maintain operations and reduce costs. Fleet management teams are encouraged to conduct these assessments, which are based on fleet-specific data, on a regular basis. In this way, the potential for fleet electrification can be reassessed following changes in the duty cycle or as new incentives and vehicle models become available.
The idea of a full fleet transition may seem a daunting task, but fleet electrification should be seen as a gradual process. By electrifying a small number of vehicles at a time, fleet performance can be assessed and, based on this, operations can be optimised prior to full-scale adoption.
Telematics: a key factor in optimising electric vehicle operations
Once electric vehicles have been incorporated into the fleet, there are a number of steps that can be taken to increase the return on investment. The key to unlocking this knowledge lies in the review of fleet telematics data.
Through the input of data, fleet management teams can optimise routes to ensure that vehicles travel as many kilometres as possible without needing to charge en route. In addition, they can establish recommended charging practices and encourage good driving habits to extend vehicle battery life and improve range.
Optimising the efficiency of fleet vehicles is a recurring theme, and many of the same techniques in place will continue to be applied to battery electric vehicles. By using fleet management software that allows you to manage both internal combustion engine vehicles and battery electric vehicles within the same platform, you can streamline the entire process.
What is the current situation of sustainable fleets?
Fleet sustainability is a growing topic and goal. Today’s electric vehicles offer range and lower lifetime operating costs for most fleet vehicle duty cycles. As more electric vehicle segments become available in the market, e.g. vans, medium-duty vehicles, etc., fleet management teams with the right data and tools at their disposal will be able to match the right vehicle to the right job, as well as seamlessly integrate electric asset operations to vehicles.
To stay ahead of the curve, fleet management teams are encouraged to investigate all available tools. After all, some of the next international government mandates are only one or two service life cycles away.
Find out more about how to incorporate battery electric vehicles into your organisation’s fleet in The ultimate guide to fleet electrification.
