The operational effectiveness of the fleet is crucial for the success of an organization. And electric fleet vehicles represent a promising segment of the potential market that can ensure fleet effectiveness.
Especially during the pandemic, this unexplored section can help fleet owners reduce their operating costs. Plus, the global anti-pollution movement makes it mandatory to shift from ICEs to EVs.
The electric vehicle fleet market has so far seen transactions of fleet vehicles such as delivery vans, taxis, and buses, thereby offering a major opportunity for fleet business owners to maximize profitability.
Whether the trend sprung up from adherence to government regulations to curb pollution or from finally realizing the benefits of EVs, fleet business owners are now moving towards electric vehicles at large.
Why You Should Consider Investing In Electric Fleet Vehicles
The market for fleet-charging services in the United States is approximated to $15 billion per year by 2030. As per the International Energy Agency, the United States ranks 7th in electric vehicle sales.
This tells us that EVs present a new and growing area for investment. Although this market is fragmented and unexploited, it is not too soon for fleet companies to put themselves in a competing position.
Organizations acquiring electric vehicles will have a better chance to lift their revenues not only by providing services in affordable transportation but also by reducing the financial expenses of the business.
Since it’s clearly worth thinking about investing in electric fleet vehicles, we will take a look at its myriad advantages for your fleet.
Major Advantages Of Investing In Electric Vehicles
The fleet management business can rely on EVs to minimize the risks associated with vehicle investment, improve efficiency, revive productivity, and reduce transportation and staff costs. Here’s how:
Lower Operational Costs
First off, EVs significantly cut down your fleet’s dependency on fossil fuels. Resultantly, companies can save on the cost of gasoline amid a COVID-induced economic slump.
According to the US Department of Energy, electric vehicles have a typical energy cost of $50-80/month, compared to the fuel cost of $160-200/month.
Based on these numbers, you could save up to $200 per month on fuel alone by switching to electric vehicles, thereby ensuring optimal fleet operations.
While electric vehicles have been typically characterized as having high growth potential, they require fleet companies to make a substantial short term investment.
So while it’s likely to be a great investment in the long term, it is clear investors do require a degree of risk tolerance and patience to reap the benefits of EVs.
But even though electric vehicles cost more than ICE vehicles, their superior efficiency, moderate price of electricity, and high utilization allow your business to quickly recoup the extra up-front cost.
In the end, fleet owners are likely to achieve a lower total cost of ownership by 2030 with EVs – around 15 to 25 percent less than ICE vehicles.
Fewer Maintenance Issues
Another significantly more compelling reason to invest in EVs is the decline in maintenance issues and resultant costs.
Electric fleet vehicle owners save thousands of dollars per year on maintenance costs with fewer moving parts to maintain. It prolongs the life cycle of your fleet and leads to better savings in the long run.
Also, the risk of accidents caused by improper maintenance activities steeply declines in the case of electric fleet vehicles, which means maximum protection for drivers and trucks.
Electric fleet vehicle owners have reported spending one-third of the cost to maintain their electric vehicles than traditional ICE vehicles.
Although tracking systems based on edge computing can dramatically reduce the chances of accidents on the road, some collisions can come completely out of left field.
In such cases, fleet managers must ensure that their fleet is structurally secure, and to this end, electric vehicles are safer than internal combustion engine vehicles.
Even in a very extreme situation where the vehicle catches on fire, the lithium-ion batteries are comparatively less flammable than gasoline.
Additionally, the vehicles are less likely to roll over in a collision due to the advantage of being lighter in weight. These features of EVs minimize the damage done to your vehicle as much as possible.
Also, vehicle safety comes with an additional reward – protecting the lives of your fleet operators and drivers.
Bulk Vehicle Price
The cost of acquiring a large number of electric vehicles is one of the first things that comes to mind for fleet owners. Unlike traditional fleet trucks, the price of bulk EVs is quite low for transportation businesses.
As an incentive to buy more EVs, 19 of 40 electric vehicle options currently on the market offer consumers and companies an MSRP below $37,000 – akin to the average cost of a new car.
This policy can allow you to buy electric cars with high sticker prices at lower rates.
Policies And Incentives
The US policies and energy conservation rules have aided the growth of the electric market. More than 15 states in the USA offer incentives and tax credits for the installation of these vehicles.
States like California and Colorado offer electric vehicle tax credit systems of $5,000 per battery electric vehicle and plug-in hybrid.
These policies could also bring about other outcomes, such as reduced use of energy-intensive thermal plants, expansion of renewable generation capacity, and lower emissions of greenhouse gases and air pollutants.
By following the guidelines stated by the government, you can benefit from the multiple incentive structures offered by the government and ensure that your business is in the clear in terms of compliance.
The demand for electric vehicles has remained low in the US market, but with patience, fleet owners have started to drift slowly towards the electric vehicles sector for more profits and fast growth.
Plus, fleet operating companies are receiving the ideal government support they anticipate to succeed in this endeavor.
You should realize as a fleet management company that investment in electric fleet vehicles will require to upgrade to a new business model and respective tools such as a global positioning system.
As such, timely investment in the electric future is the key to success in the fleet vehicle industry.