Car and commercial vehicle fleets making the shift to electric vehicles are now seeing tangible cost efficiencies, a new study suggests.

Four in 10 larger fleets anticipate reduced total cost of ownership as a result of their transition to electric

An in-depth study of 300+ senior decision-makers responsible for the electrification of 100+ vehicle sized fleets (cars, vans, medium and heavy-duty trucks, buses and specialist vehicles) across the UK and US, has revealed that 43% anticipate reduced total cost of ownership as a result of their transition to electric.

The study, carried out by Vanson Bourne in conjunction with EO Charging, also uncovered that, on average, more than half (53%) of organisations’ fleets are now electrified, with just four years to go until the 2030 deadline for the phase-out of petrol and diesel vehicles.

EO Charging said the transition to electric vehicles has gone far beyond environmental benefits to positively impacting the bottom line of commercial vehicle fleets.

Richard Staveley, CEO at EO Charging, commented: “This research clearly highlights that commercial fleet electrification has now evolved from what was once primarily a legislative-led initiative to meet environmental targets to a mainstream business strategy. Driven by seeing tangible cost efficiencies, organisations across multiple industries have long moved beyond small trials and pilot schemes to embrace electrification as a transformational business benefit.”

The study also revealed that the majority (84%) of organisations have already at least partially introduced a net-zero transportation initiative, with over half (54%) pointing to cost savings / long-term financial benefits as the primary driver for this.

And public sector organisations are more than twice as likely to have a fully implemented net zero transportation initiative (47%) than their counterparts in the private sector (23%).

But challenges on the road to electrification remain, including changing governmental policies.

Eight in 10 organisations (81%) surveyed said that policy fluctuations are undermining their ability to develop long-term electrification strategies, while over half (54%) are not planning beyond the current administration in their respective markets.

Uncertainty around energy markets and rising global tensions are further impacting long-term planning amongst UK commercial vehicle fleets. Nine in 10 (88%) of respondents said fluctuations in energy price make it harder to prove the financial case for the transition to electric. Meanwhile, 80% of UK respondents pinpointed global tensions as raising risks around sourcing critical components such as EV batteries.

Richard Staveley added: “Fleet electrification has reached a pivotal inflection point, as businesses seek further clarity at a governmental level to plan for the long-term and maximise the benefits they’ve seen from initial EV adoption. In the UK, the government’s Industrial Strategy marks positive steps in this direction with clearer mandates around policy timelines and decarbonisation targets. However, to scale with confidence businesses should make sure they are engaged with industry bodies, work closely with manufacturing and energy partners, and frequently review government guidance. Working in a collaborative manner will help ensure fleets are best poised to scale efficiently and realise the full promise of electrification.”

To access the full report, please click here.