Fleet operators should not delay putting robust plans in place to transition to electric vehicles, despite unprecedented challenges.

Samuel Kellner-Steinmetz, chief sales officer of Fleet Logistics Group

Samuel Kellner-Steinmetz, chief sales officer of Fleet Logistics Group, said that while it may be tempting to put plans on hold amid increasing energy costs and vehicle supply shortages, legislative change meant the clock was steadily ticking. This includes EU legislation that will continue to promote electrification, while air quality standards will get tougher over the next few years.

The global fleet management specialist pointed to the European Commission announcement of a requirement for a 60% Europe-wide cut in particulate matter from light commercial vehicles by 2030 under revisions to its ambient Air Quality Directives.

The new car market is under similar pressure with a 2035 end-date for combustion engine cars, while the EC aims to have 30 million plus EVs on Europe’s roads by the end of the decade.

Meanwhile, the EU is to tighten up CO2 ratings for plug-in hybrid vehicles (PHEVs), making them realistic of everyday use and potentially having a serious impact on sales.

In parallel with such legislative pressures, rising energy costs across Europe, largely linked to Russia’s invasion of Ukraine, mean that fleets need to pay greater attention to managing charging costs and availability of infrastructure, according to Fleet Logistics.

It’s now advocating that fleet operators instigate a thorough review of existing cost bases and adopt a flexible approach to tackling some of these issues, with clear-cut objectives and timelines in place.

Kellner-Steinmetz said: “Cost control and careful and accurate budgeting are vital at this time of great volatility in global markets. Fleets need to take time to review supply chains and scrutinise budgets now, setting up accurate forecasts to work with for the future. At the same time, ensuring that efficient and cost-effective partners are in place is key for any future success, especially around the movement to electrification.”

Cost reviews need to focus on existing suppliers and developing supplier management – including looking at the merits of a multi-bid approach through a panel of lenders to achieve better pricing and use matrix pricing to manage mileage and contract terms to achieve the optimum results.

This approach can be used to model a series of ‘what-if’ scenarios, such as bundling or unbundling fleet services from lease contracts, allowing fleets to alter contract lengths and see the impact on costs – a vital factor for those fleets that may have fallen behind in the EV transition.

Kellner-Steinmetz added that while the fundamentals of basing decisions on the total cost of ownership may remain consistent, getting hold of and analysing high-quality data to make these decisions is problematic. The company has recently launched a new tool, E-Fleet Transition, to help fleets navigate a smooth and cost-effective transition to electric vehicles and get insights on a country-by-country basis.

The new solution aims to give operators a forecast of what it means to electrify their fleets, projecting total CO2 emissions and the return on investment in electrification and charging infrastructure up to 2030.

Kellner-Steinmetz continued: “For an organisation to reach its required goals requires careful planning and roll-out to take advantage of any incentives that are available in markets and to ensure that data analytics are available to measure success. Each organisation has different operational requirements and, for many fleets, they are learning lessons as they go.

“We offer a holistic approach to electrification, and our consulting team has never been busier in helping reduce the complexity for clients by analysing the true costs of running ICE vehicles versus EVs, assessing the best OEM mix, and profiling drivers to identify those best placed to make an earlier transition than others within the organisation.

“While now may not seem like the ideal time to make the transition to electric, waiting and doing nothing is really not an option,” he added.