- Upfront costs and complex infrastructure maintenance pose significant barriers for fleet operators transitioning to EVs.
- Financial aid and strategic planning are crucial for overcoming costs and achieving successful fleet electrification.
- Naomi Nye, EV expert at Drax Electric Vehicles, explains the financing process for business fleets making the EV transition.
Why are fleets so important to the country’s zero-emission goals?
The EV transition is a necessity for businesses across the country as the deadline for the ban on Internal Combustion Engines (ICEs) looms ever closer. Fleets are key areas for decarbonisation, as major contributors to emissions, congestion, and poor inner-city air quality. Moreover, electric fleets show dramatic improvements in uptime, operational costs, and employee welfare.
Naomi Nye, EV Expert at Drax Electric Vehicles, and Top Women in EV finalist, explains the urgency of the situation in her insight piece:
“Though only half of UK businesses have installed a charge point to date, organisations nationwide recognise the need to switch to EV fleets with supporting infrastructure.
The urgency’s clear. The ban on the manufacture and sale of ICEs is fast approaching – and the need for visibility of sustainability commitments is ever-growing.”
Fleet sales are responsible for over 50% of new car sales. That’s a staggering chunk of the industry under corporate responsibility. Furthermore, many fleet sales are LCVs and trucks, and fleet cars travel much further on average than privately owned cars. Overall, HGVs account for around 20% of the UK’s road emissions, with vans following close behind at 17%.
So, why aren’t all fleets electric already?
Businesses reliant on their fleets are facing a significant challenge. How do they decarbonise, while retaining their operational efficiency, and staying on budget?
Fleets must be constantly operational, as their movements are intrinsically linked to the company’s success. The transition means a new way of thinking about fleets. No longer can your drivers pop to a petrol station on shift. Now, companies must ensure they can charge quickly and reliably carry out their daily routines.
What’s more, operators must buy and install new charging infrastructure, which is breaking new ground for many. That means each depot must be fully equipped with enough charge points to supply the fleet. In turn, each vehicle must have space and time to charge, and the facility must have the appropriate electrical capacity.
Naomi Nye explores the challenges in her piece on the prohibitive costs of charging infrastructure. She explains that high upfront costs are a key barrier, cited among the top three concerns by 51% of fleet operators.
She also explains the process of getting your fleet’s charging infrastructure ready. This includes site surveys, possible electrical upgrades to ensure access to adequate power, and upfront hardware and labour costs. It all adds up, realistically taking both money and time.
How do we overcome the hesitations, and embrace the benefits of EV fleets?
As is often the case, finance. Whether it’s from governments, businesses, or private donors, investment shapes the emobility world. It’s an investment that businesses can’t skip if they’re to remain profitable into the future.
Naomi Nye explains how fleet operators can diminish the size of the challenge in front of them. The process can be straightforward if you know your fleet’s workload,and set up an action plan to hit the zero-emissions goal. Seeking financial assistance and guidance at the start is essential. As is ensuring you’re on the right financial plan for your business, and that you’re scaling appropriately to match your operations.
The EV transition is urgent, and potentially expensive for businesses. However, with the right support, an EV fleet can truly flourish. With the right approach, as Naomi outlines, businesses can overcome the cost barrier, allowing them to experience the benefit of EVs, and contribute towards hitting national decarbonisation targets.
