In recent years, there has been a significant shift towards electric vehicles (EVs), and more and more companies are considering making the switch. There are several compelling reasons for companies to transition their fleet to EVs, including cost savings, environmental benefits, and improving their brand image.
Cost Savings
One of the most significant advantages of switching to electric vehicles is cost savings. EVs are significantly cheaper to operate and maintain than traditional internal combustion engine (ICE) vehicles. EVs have fewer moving parts, meaning less maintenance and lower repair costs. Additionally, EVs are more energy-efficient, resulting in lower fuel costs. In a previous article we looked at EV versus ICE efficiency where we see that an EV can cost as little as 2-4 cents per mile to operate, compared to 10-15 cents per mile for an ICE vehicle. Over the life of a vehicle, these savings can add up to tens of thousands of dollars.
One key topic that it is always on the mind of a fleet manager is that of TCO and mobility. Take a look at these articles that goes into more detail.
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Environmental Benefits
Switching to electric vehicles can also have a significant impact on the environment. EVs produce zero emissions, which can help companies reduce their carbon footprint and meet sustainability goals. The barriers to electrification are falling away and the whole life proposition and TCO calculations show the benefits of switching to reach CSR and cost saving goals. By transitioning to EVs, companies can play a significant role in reducing these emissions.
Brand Image
Switching to electric vehicles can also help improve a company’s brand image. Consumers are becoming increasingly concerned about the environmental impact of their purchases, and many are actively seeking out environmentally responsible companies. By transitioning to EVs, companies can demonstrate their commitment to sustainability, which can help improve their reputation and attract environmentally conscious customers.
Tipping Point
The transition to electric vehicles is happening now. We are at a tipping point as more companies make the switch, the cost of EVs will continue to decrease, making them even more attractive. Additionally, governments around the world are offering incentives and tax breaks to companies that transition their fleets to EVs, further reducing the cost.
Range
One of the main concerns companies have about switching to electric vehicles is range. However, what range do you think most drivers actually need? The average daily driving distance for most fleets is well within the range of most EVs. Additionally, the range of EVs is improving rapidly, with some models now able to travel over 400 miles on a single charge.
EV World is Moving Fast
The transition to electric vehicles is happening rapidly, and companies that don’t make the switch risk falling behind. Electric vehicle sales now account for one in ten of new cars registered in the EU as of August 2022. It’s clear that the shift to electric vehicles is not a passing trend, and companies that don’t make the switch risk being left behind.
There are several compelling reasons for companies to switch to electric vehicles. EVs offer significant cost savings, environmental benefits, and can improve a company’s brand image. Additionally, we are at a tipping point, and the transition to electric vehicles is happening rapidly. Companies that make the switch now will be well-positioned to reap the benefits of this shift.
