Fleets look to electrify faster than consumers

A new global survey found significant progress in fleet electrification across Europe, North America and Asia-Pacific, while highlighting the challenges fleet managers face in transitioning to a mixed-energy fleet.

The report, The Commercial EV Transition: Global Insights on a Mixed-Energy Fleet Future from by Frost & Sullivan, commissioned by WEX, outlined crucial findings for businesses managing fleets with both electric vehicles (EVs) and internal combustion engine (ICE) vehicles.

It revealed that while EV adoption rates vary depending on the region, business and fleet type, there is a clear trend toward increased electrification in the coming years. Nearly half of the surveyed fleet managers expect EVs to make up 50 per cent or more of their fleets by 2030.

The transition to a mixed-energy fleet is underway, but the report emphasizes that it will take time. Fleet managers are actively working to accelerate EV integration, but they face several challenges in managing both EVs and traditional ICE vehicles. Key factors such as geographic location, industry specifics and the scale of operations play critical roles in determining the rate of EV adoption.

“The study demonstrates that there is still high ambition to integrate EVs into fleet operations, not just to meet sustainability targets but to enable more cost-effective operations,” said Dr. Jose Pereira, director of Frost & Sullivan’s mobility advisory practice. “However, achieving this transition presents significant challenges.”

The report underscores the importance of expert guidance for fleet managers seeking to create an optimal EV adoption roadmap. These roadmaps must strike a balance between the initial investments required for vehicle acquisition and charging infrastructure and the long-term savings from reduced fuel costs, lower maintenance and extended vehicle life. Additionally, EVs offer enhanced driver satisfaction due to quieter, smoother rides.

However, fleet managers must also contend with new operational challenges as they integrate EVs into their fleets. This includes maintaining EV infrastructure, managing energy costs and coordinating charging payments across various locations. These factors necessitate updates to existing fleet management and payment systems to ensure operational efficiency and sustainability.

The report also identified broader challenges for fleet operators. Fuel costs (67 per cent), operational expenses (66 per cent) and shrinking profit margins (59 per cent) were cited as the top concerns, reflecting the pressure on fleet managers to control costs while transitioning to sustainable practices.

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