If you’re looking to help support the economy, lower fuel costs, and reduce emissions, you may be considering the benefits of switching your commercial vehicles from traditional fuel powered vehicles to electric vehicles (EVs), or plug-in hybrid electric vehicles (PHEVS).
There are several EV trends driving fleet electrification, ranging from government incentives in renewable energy to growing interest in corporate fleet sustainability.
The International Energy Agency (IEA) projects that because the Corporate Average Fuel Economy Standards for 2024-2026 will enhance fuel efficiency, it will boost light-duty EV sales. California's Advanced Clean Cars II regulations, adopted by 12 states and Washington DC, aim for 100% zero-emission vehicle sales by 2035, affecting about one-third of US light-duty sales.
For fleets, this means a strategic shift towards more electric options. Additionally, the US Environmental Protection Agency (EPA) set emissions standards for 2027 and beyond that are expected to push electric vehicle sales to around 70% by 2032, influencing both light-duty and heavy-duty vehicle strategies. This shift towards standardization and reduced costs will be crucial for fleet operators adapting to new regulations and market demands.
Discover five trends driving the switch to electric or hybrid fleet vehicles.
What this means for you: The drop in EV battery prices makes it that much easier for you to reach your sustainability goals. Use EV-inclusive Total Cost of Ownership (TCO) tools to find early opportunities to electrify your fleet. Look for places where operational costs are similar between ICE vehicles and EVs. This will help you be more cost-efficient during early fleet electrification and show you how to adopt EVs on a larger scale.
What this means for you: Ensure that you evaluate all possible incentives that can help to reduce the investment required to electrify your fleet. Element Fleet Management looks at available federal and state or province incentives. This helps clients take advantage of opportunities across North America.
What this means for you: Test electric vehicles for a deployment program first on a small scale. This will help you get ready for transitioning to full fleet electrification, which will be easier when your TCO parity is reached for your relevant vehicle classes. You will see an increase in driver satisfaction because EVs have great handling and smooth acceleration. Improved driver experience leads to increased driver retention and less employee turnover.
What this means for you: Make sure to include home, depot or workplace charging in your plans based on your use-cases. For longer routes, public charging is also an option. Infrastructure is growing as charging stations increase over time.
What this means for you: Review your sustainability goals and involve stakeholders early on to gain the necessary internal support.
No matter where you are in your EV journey, by following our recommendations, you can begin the steps towards a successful EV fleet transition.
Ready to transition? Contact us now to start your electrification journey!
