Electric vehicles (EVs) could account for 55% of new light-duty vehicle sales globally by 2035, per research from the International Energy Agency (IEA). This steep adoption curve is expected to extend beyond consumer car buying and into the commercial sector—large corporations and federal entities are exploring EVs as they grow their light-duty and larger fleets. Battery and vehicle prices are dropping, charging access and infrastructure is maturing, and EVs are beginning to reach parity with internal combustion engine (ICE) vehicles.
An uncertain regulatory market is also creating short-term friction for both fleet managers and vehicle OEMs trying to navigate changes to federal and state policies. Organizations that take time to understand the landscape, plan, and prepare before making the leap to electrification will have a strategic advantage.
Learn the Market, Align Objectives & Choose the Right Partner
Even across light-duty vehicles there are a wide variety of options for businesses to consider when it comes to EVs. It’s critical to understand the current marketplace and research which vehicle classes and types will be best suited to your organization’s needs. Think about long-term needs and use cases, not just immediate ones. This will ensure you invest in vehicles that can evolve with your organization.
Large organizations can be subject to siloed decision-making, where finance, operations, and sustainability teams may have intersecting goals but operate independently of one another. Bringing all parties to the table early to determine goals, key metrics for success, and address questions is key to any EV transition and can help secure top-down support from the beginning.
Even with proper planning and early action, adopting EV fleets can be a complicated journey.
Working with an external partner who can help parse through existing operations/vehicle data and identify the best course of action for an EV transition can help save time and money in the long run. For instance, securing appropriate charging technologies is foundational to improving uptime and driver experience within an EV fleet. The right partner can enable an organization to get this key step right early, reducing costs and avoiding redesigns later. This accelerates progress, since an expert can help analyze current fleet operations, evaluate infrastructure constraints, and map the right mix of charging solutions.
Embrace Data & Emerging Technologies
Vehicle fleets are becoming more connected each day, and existing data from your organization’s ICE fleets can be leveraged to help understand operations at a high level and identify readiness for the EV transition. Having insight into routes, driver behavior, and vehicle usage can help identify charging use cases for future EV fleets—where home/depot chargers will be needed, when drivers will rely on public charging, etc. This can also help plan and predict charging costs. Access to vehicle usage data information up front will also make it easier to engage drivers and train them for the transition early.
Further, once fleets are operational, access to driver assistance and onboard telematics data can improve overall safety and satisfaction. Looking a little further into the future, autonomous vehicle (AV) platforms will almost universally be electric as they reach commercial maturity. This means that building strong EV capabilities today can become a foundation for tomorrow’s autonomous operations. Organizations that understand charging patterns, energy management, and connected vehicle ecosystems will be better positioned to integrate AV technology when it becomes viable at scale.
Identify Funding Opportunities & New Sources of Revenue
Since adopting an EV fleet often means installing on-site vehicle charging, organizations can also leverage available software solutions to support multi-use charging at commercial sites. Doing so introduces a new revenue source via public charging access during time periods when the chargers are not needed for fleet vehicles. These funds can be re-invested into development and other efforts.
Access to EV fleet data and revenue-generating opportunities can also make it easier for organizations to pursue incentive funding opportunities that will support the build-out of their fleets as well as other electrification initiatives. As funding is no longer concentrated in a few large federal programs, meaningful opportunities are coming from state agencies, municipal programs, and especially utilities. Organizations that can show credible data, clear operational plans, and potential community benefits are better positioned to compete for these dollars. Making the shift to EV fleets is a lucrative business decision but also one that requires careful planning and research to ensure long-term success and return on investment.
Avninder Buttar is the SVP of electrification at Element Fleet Management.