Transitioning to an EV Fleet
By Nicola Richmond, Head of Churchill Expert Flexible Fleet Partnerships
The fleet management industry is undergoing a transition, as climate change becomes a more material issue for the sector. The transition to Net Zero is now front and centre of fleet managers’ decision-making and with the first generation of electric vehicles (EVs) giving way to a new generation of EVs, the shift to greener transportation is only going to speed up.
Our research shows that on average fleet managers are aiming to electrify over half their fleet by 2024 and 78% intend to convert their entire fleet by 2030. These encouraging numbers are pinned to several factors including the lower running costs of EVs, with 38% of fleet drivers saying it is the main factor encouraging them to transition. Beyond that, the rise in government-led green initiatives such as the Ultra Low Emission Zones (ULEZ), which fleet managers say is impacting their operations, and the greater availability of flexible vehicle acquisition, such as salary sacrifice and subscription schemes, are other reasons for electrification.
However, supply chain issues that continue to plague the industry following the pandemic resulting in longer waiting times, is impacting the ability of some fleet managers to make the leap. Restrictions in the market have meant that a quarter of fleet managers are now willing to be more flexible with their fleets’ trim, colour and technological specification in order to receive their EVs sooner. The market is proving resilient, as managers find ways to navigate the current obstacles.
Turning to drivers, appetite for EVs is irrefutable. As much as 70% of fleet drivers say they would prefer the electric ‘alternative’ to the petrol or diesel version of their favoured van. According to the Society of Motor Manufacturers and Traders (SMMT), the number of new Battery Electric Vehicle (BEV) van registrations is showing strong growth. This comes as supply chain issues start to wane and the choice of electric vans on the market grows.
“The world has woken up to the realities of the energy transition and the importance of vehicle electrification cannot be understated.”
The world has woken up to the realities of the energy transition and the importance of vehicle electrification cannot be understated. Drivers and managers are becoming increasingly comfortable with the prospect of the electrification of their fleet, or vehicle. The vehicle models and the overall benefits, both in terms of cost and support available, are only improving. Churchill Expert’s team of dedicated underwriters can help support businesses on this road into the future with tailored insurance products and pricing covering vehicle theft, accidental damage, battery, theft of charge cables and EV charger wall boxes.
Head of Churchill Expert Flexible Fleet Partnerships