How Electric Vehicle Adoption Can Help Reduce Fleet Costs
Management costs are on the forefront of any fleet manager’s mind—after all, it’s one of the biggest expenses a business can undertake. When conducting a fleet utilization analysis, one question that is bound to pop up again and again is the following: while electric vehicles are better for the environment, are they better for the business’ bank account?
Conducting a fleet electric vehicle suitability assessment to see if integrating more electric vehicles would be a cost-effective choice is a reliable strategy to utilize to reduce fleet costs and, ultimately, improve a company’s bottom line. Below, we’ll explore how adopting electric vehicles (EVs) into your fleet can help your business save in comparison to diesel and gasoline-powered vehicles.
Significantly Higher Fuel Efficiency
EVs are known for being extremely fuel efficient, and that simple fact won’t be changing any time soon. Compared to internal combustion engine vehicles, electric cars are 85-90% more efficient. To break it down, EVs convert over 77% of the electrical energy from the grid to power at the wheels, whereas ICE convert about 12%–30% of the energy stored in gasoline to provide momentum. This can lead to significant savings in fuel costs in the lifecycle of ownership.
Government Incentives for Going Green
Electric vehicles are better for the environment than combustion engine vehicles due to their low emissions levels. While this helps reduce air pollution, it also helps companies meet up-and-coming emissions regulations set by government agencies or internally within their own organization. Meeting these standards can help your business save big on hefty fines or even suspension of operations.
The Catch: Purchasing an EV Up Front is More Expensive
When it comes to reducing fleet costs, electric vehicles have a lot to offer. However, the downside of utilizing electric vehicles is the high cost of buying them in the first place (especially if you’re opting for EVs that have a longer range). For example, Tesla models with over 300 miles of range all have starting prices over $60,000. The all-electric Chevy Bolt is a more affordable alternative, with starting costs in the mid $30,000s, but it only offers 259 miles of range. These up-front costs are important when fleet managers are evaluating yearly budgets.
Employ Fleet Electrification Assessments to Find the Ideal Combination of Vehicles for Your Fleet
While they are a bit pricier upfront in comparison with diesel or gasoline-powered vehicles, there are cost-saving benefits of adopting EVs. Because every business is different than the next, we are firm proponents of conducting a detailed fleet electrification assessment so you and your team can pinpoint which ICE vehicles would make the most sense to replace with EVs to optimize fleet efficiency and cost savings.
If your managers are looking for fleet electrification opportunities, rest assured that our team here at Sawatch Labs is here to help. Combined with our state-of-the-art EV analytics software and EV telematics technology, your business will be able to leverage operational data to unlock your fleet’s ultimate potential. Contact us here for more information.
A fleet utilization analysis is different from a fleet electrification assessment. A utilization analysis assesses each vehicle to see if it is used enough to justify keeping it or if it isn’t used enough, then a fleet will sell it.
