The financials are adding up - EVs can really work
Sometimes bad news can bring good news. In the case of EVs, this good news comes in 3 phases and can have a positive impact on your bottom line…
The path to electrification is becoming clearer every day and lowering the “Total Cost of Ownership” of your fleet can and will be part of that journey if you play your cards right. To fully benefit from the opportunities “going green” can provide, both now and in the coming years, however, it’s in your best interest to seriously start planning the energy transition of your fleet NOW. Here’s why:
In the short term, the current environment has created a favorable context for encouraging EV adoption:
- New EV models are being introduced which are comparable to their petrol/diesel-equivalents with greater ranges thanks to increasing battery capacities
- Significant government EV funding is being provided through targeted support schemes which make purchasing EVs cheaper
- Wider remote working due to the current health crisis has reduced travels requirements and given way to the adoption of new business practices. This is creating ideal scenarios where driving an EV is most likely the right choice from a practical point of view, as well as financially and ecologically. This makes it the right time to revisit your mobility policy.
These factors have created an optimal window of opportunity to begin the energy transition.
In the mid-term, over the next 4-5 years, manufacturers will be significantly improving the production of electric vehicles which will decrease production cost, if not match, those of an ICE equivalent. That means EV prices will drop considerably while continuing to benefit from lower maintenance costs than petrol & diesel vehicles. Diesel bans in major cities will also continue to spread, further fueling manufacturers’ phase-out of fossil fuel vehicles. You don’t want to be stuck with an immobile fleet due to poor planning!
Over the longer term, governments will ultimately reduce their EV spending, as market demand grows, to focus on financing charging infrastructure to further encourage EV usage.
By starting the energy transition today, you will enable your company to fully benefit from each phase of the path towards electrification. But make sure you do your homework. This means taking the time to analyze and adapt your mobility policy to make sure that your drivers are receiving the right vehicle for their needs, as well as driver training to ensure optimal usage of their EV. It also means putting in place the right infrastructures for charging at work and at drivers places as 90% of EV charging takes place are office or home based. Although this infrastructure represents an additional cost, this can be in part financed by the savings accrued through government incentives, lower fleet maintenance costs and reduced fuel expenses.
In a nutshell, the financials are really adding up. EVs can help reduce your fleet TCO but you need to start the process now if you want to fully benefit from the opportunities available.
If you’d like to find out more about how you can start the energy transition of your fleet, contact us at:
Benjamin Huvé - firstname.lastname@example.org