Exciting Electric Vehicle Fleets
The transportation sector is poised for a significant shift as fleet operators consider transitioning to electric vehicles (EVs). With fleet cars responsible for 77% of land freight and 56% of public transport journeys, the electrification of these cars is central to reducing emissions and addressing climate change.
In Europe, approximately 26% of road cars are part of a fleet. The high rate of turnover in these cars can accelerate the decarbonization of the transportation sector. However, fleet operators must make informed decisions about this transition, considering factors like geographical location, economic feasibility, infrastructure availability, competitive positioning, and access to partners.
Road transport is one of the main sources of air pollution, with associated costs for society potentially rising to £5.3 billion by 2035 in England if not adequately addressed. Electrifying just 25% of road cars could potentially cut emissions by 50%. This not only benefits the environment but also helps mitigate these costs and improve public health.
Fleet electrification can play a significant role in reducing air pollution, particularly at the local level. Several European fleet operators, especially in logistics and transport sectors, have announced strategic shifts toward EVs. For example, Mercedes-Benz Vans reported significant sales of 19,500 EV vans worldwide last year, including a recent large order of 5,000 electric vans for Amazon's delivery partners to be delivered in the coming months.
Industry service providers like UTA Edenred support fleets in transitioning to electric trucks with comprehensive planning and support solutions, while engineering firms such as TSG assist in depot electrification and infrastructure development for sustainable fleet operation.
Collaborating with charging providers can yield advantageous terms for tailored charging solutions that cover both depot and public charging. Coordination among operators to share electric vehicle procurement and infrastructure can provide desirable scale economics, driving down costs for all operators.
If electrification is not yet economically sustainable for a specific fleet, operators can consider partnerships across the value chain to share risks and reduce costs. An all-encompassing economic analysis is crucial for the success of fleet electrification.
Engaging with policymakers to advocate for supportive regulations and subsidies is another avenue to explore for fleet operators. The EU plans require company and rental fleets to be fully electric by 2030, with interim targets possibly set for 75% by 2027. However, these regulations are not yet finalized and still under political negotiation.
Fleet electrification is a crucial element in the effort to reduce emissions at global, national, and local levels. By making informed decisions and leveraging partnerships and supportive policies, the transition to electric fleets can be a success story with significant environmental and economic benefits.
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