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TRANSITIONING TO AN EV FLEET
Steps in the right direction
The number of electric car models continues to rise, but some drivers are still reluctant to take the plunge to switch from ICE. Industry experts show how to win over sceptical drivers and identify benefits for them – and their business
Challenges and opportunities for European fleet managers
Alphabet’s European Fleet Emission Monitor (EFEM) report reveals that 64% of companies across Europe see developing a sustainable fleet as a strategic priority. However, in the face of misinformation and changing regulations, fleet managers have concerns about ensuring the EV transition is as seamless for their drivers as possible. In particular, European fleet managers are concerned about charging infrastructure, with one in three citing it as a significant barrier, alongside range anxiety, which troubles 41% of managers.
However, fleet managers are crucial in helping to drive EV uptake internally as drivers need to feel that their mobility needs will be met. This goal can only be achieved if fleet managers are confident that they can make data-driven decisions about how to electrify their fleet while considering challenges with charging, range and cost. One starting point is to gather feedback from employees who have already made the switch. This will arm fleet managers with insight into how they can improve the transition process.
Understanding employees’ driving patterns will also help to make the EV transition as hassle-free as possible. By using telematics and conducting driver surveys, fleet managers can better allocate vehicles according to employees’ mobility needs. From plug-in hybrid electric vehicles (PHEVs) to battery electric vehicles (BEVs) and hybrid electric vehicles (HEVs), it’s important to understand that electrification is never a ‘one-size-fits-all’ scenario.
Cost is another concern for employees, so it is important that fleet managers help drivers understand the potential long-term savings of electrification. When considering the total cost of ownership, electrified vehicles can prove to be a more viable economic investment, especially when considering the often cheaper service, maintenance and repair (SMR) of EVs compared to internal combustion engines (ICE), additional charges to ICE vehicles in low-emission zones across the UK, and EV benefit in kind (BiK) tax exemptions. Many drivers are also concerned about how their costs will change with the transition from fuel to electric, particularly when it comes to the cost of charging vehicles at home and work versus publicly. It is crucial that fleet managers support employees through this transition by accurately modelling TCO, and considering a wide array of factors, helping employees understand that EVs can often be a cheaper alternative in the long term.
Caroline Sandall-Mansergh, consultancy and channels development manager, Alphabet GB
“Fleet managers are crucial in helping to drive EV uptake internally as drivers need to feel that their mobility needs will be met”
Mark Young, account director, AX
Driving forward
While motoring has continuously evolved over several decades, transitioning to an electric car is a bigger step. The fleet sector has seen consistent growth in EV uptake; however, businesses have had to adapt rapidly and understand how to support an expanding EV fleet as drivers seek to take advantage of the benefits of going electric.
The obvious benefit is zero tailpipe emissions. EVs are contributing to lowering overall emissions, with the SMMT reporting that average car CO₂ has reduced by 2.1%. Company car emissions were down 11.5%, thanks to generous incentives encouraging company car drivers to transition to EVs.
In addition to the altruistic and Environmental, Social, and Governance (ESG) benefits from a business perspective, zero tailpipe emissions also arrive with financial incentives, too. Very low levels of BiK tax (2%) are available for company car drivers and both businesses and drivers avoid fees associated with Clean Air Zones. Not to mention the lower running costs when it comes to charging with electricity over refuelling with petrol or diesel.
However, aspects of transitioning to EV, including vehicle range and concerns about charging infrastructure, are potential barriers for some drivers and fleet operators. Luckily, while drivers may have to adjust routines, they do not have to make significant compromises. EV range is improving as new models are introduced, investment in national charging infrastructure is growing, and workplace charging is becoming more commonplace.
While worries around accessible charging are gradually alleviating, the wider automotive ecosystem must be considered, too. Businesses and drivers must plan for what happens when a vehicle is taken off the road. Motor Assist, from AX, is a flexible, modular incident management solution that perfectly fills that role with its EV-for-EV guarantee, ensuring continuity of service for businesses and EV drivers.
Coping with the challenges electric vehicles can present in an efficient and cost-effective way will help ensure that businesses and drivers remain committed to their EV journey.
With fleet EV registrations rising, the need for an incident management service with an efficient EV-capable repair network that prioritises repairs and an integrated EV-for-EV replacement vehicle guarantee has never been greater.
Breaking barriers
Businesses are increasingly looking at how they can reduce their impact on the environment, with many focusing on mobility as a quick win. After all, transport accounts for a significant proportion of all carbon emissions. However, barriers remain even for the most forward-thinking businesses.
We are running a monthly survey of business and private motorists to track how their attitudes to EV motoring change over the course of the year. Data for quarter one suggests that infrastructure and cost are bigger barriers for private motorists than business drivers.
However, lack of charging infrastructure has been steadily increasing in significance as a barrier for business motorists. 35% of business drivers surveyed in March cited this as a reason that their employer has not switched to a more sustainable fleet compared with 32% in January.
What also interests us is the role of knowledge in the EV transition. Across Q1, 23% of private and business motorists cited this as a barrier to switching. Clearly more work needs to be done to overcome the FUD – fear, uncertainty and doubt – that seems to prevail. This is why Europcar has made an investment in providing motorists and employers with all the information they need on electric motoring.
The Europcar Digital EV Guide – a free-to-access resource tool – not only provides insight into each of the electric models on our fleet and a direct link to the Zapmap tool for planning a route around charging locations. It also offers a wealth of tips and advice on electric motoring in the Knowledge Hub, covering everything from how to adapt to driving an EV to the best approach to charging. Along with a growing fleet of EVs, our goal is to make zero emissions mobility an achievable and accessible solution for everyone.
