In recent years, the transportation sector has undergone a dramatic transformation, with an increasing number of fleets transitioning to electric vehicles (EVs). While many businesses have already embraced this shift, some have hesitated, waiting for the ideal moment.
Now, with favourable government incentives, evolving regulations, and rapid technological advancements, there has never been a better time to electrify your fleet. This article highlights the top reasons why making the switch to EVs is currently a smart move for your business.
Despite the higher initial costs of EVs, their long-term expenses are significantly lower compared to internal combustion engine (ICE) vehicles, resulting in a reduced total cost of ownership (TCO) for fleets.
This cost reduction is primarily due to lower maintenance needs, given that EVs have fewer moving parts and lack traditional, complex engine components. For instance, they don't require oil changes, which in turn decreases both the associated downtime and expenses. Likewise, fuel costs are wholly eliminated with EVs.
Further savings can be achieved by involving drivers in the transition to EVs. Educating them on eco-driving techniques, as well as giving them efficiency tips, can greatly improve the range and battery health of EVs. Regularly monitoring driving behaviour and energy consumption across a fleet will help maximise these benefits and ensure optimal performance.
While EVs have a higher initial cost, this can be mitigated by various government incentives designed to lessen the financial burden. Tax credits, grants, and subsidies are all out there, significantly lowering the upfront costs of purchasing EVs. These programs are a key part of how governments are encouraging businesses to transition their fleet to EVs.
For example, the UK government's Workplace Charging Scheme provides grants to support the installation of EV charge points, with opportunities available until March 31, 2025.
Similarly, Transport for London has expanded its scrappage scheme to provide small businesses with more financial assistance for purchasing ULEZ-compliant vans. The scheme offers £7,000 per van for up to three vans, allowing businesses to receive a total of £21,000 for a greener fleet. Additionally, grants of up to £9,500 are accessible to replace non-compliant vans with electric ones.
Businesses are increasingly prioritising corporate social responsibility (CSR) to align with customer expectations and societal values. Consumers today expect the organisations they support to reflect their own ethical standards and environmental concerns.
One standout way for businesses to demonstrate their commitment to CSR is by reducing their carbon footprint, and transitioning to an EV fleet is a highly effective method. The transport industry is the largest contributor of greenhouse gases (GHGs), accounting for 26% of the UK’s total emissions. By adopting EVs, companies can cut these emissions substantially.
Moreover, many cities have implemented Low Emission Zones (LEZs). EVs, which produce zero tailpipe emissions, help reduce GHGs, and thereby improve air quality. The benefits in this context are multifaceted: decarbonised fleets enhance corporate image and customer satisfaction, contribute to global sustainability, and help businesses avoid the costs associated with operating ICE vehicles in restricted areas.
The impending 2035 ban on ICE vehicles in the UK underscores that the shift to EVs is not a choice, but rather a necessity for business owners. Starting January 1, 2035, the sale or lease of new petrol and diesel cars and vans will be prohibited, allowing only new vehicles that produce no fossil fuel emissions.
In addition, the government has committed to making all new heavy goods vehicles (HGVs) zero-emission by 2040. This transition will start with phasing out new, non-zero-emission HGVs weighing 26 tonnes or less by 2035, eventually extending to all HGVs by 2040. The initiative aims to put the UK's transportation sector on track to meet the net-zero target by 2050.
As such, the earlier businesses start planning this transition, the smoother it will be. Beyond the vehicles themselves, there’s the integral consideration of installing the necessary charging infrastructure. Delaying this can result in operational downtime, as setting up charging stations for electric vans and HGVs can be time-consuming. Early adoption and planning are vital to ensuring a seamless switch to an electric fleet.
Transitioning to an EV fleet presents numerous benefits, but admittedly also comes with its share of challenges. These often include initial investment costs, vehicle optionality, alongside concerns about charging infrastructure. A well-planned approach is essential to navigate these hurdles effectively.
At MICHELIN Connected Fleet, we understand these challenges and have developed EV fleet management solutions to facilitate your business’s transition. Our consultative services are designed to address all aspects of the switch, from cost and implementation to management and optimisation.
Incorporating EVs into your business fleet can lead to significant cost savings and contribute to a more sustainable transport sector. Whether you’re just beginning your journey towards electrification or already managing a fleet of EVs, we’re here to help. To learn how we can support your transition to a greener fleet, then be sure to make an enquiry today.