In just over seven years, conventional new petrol- and diesel-powered cars will be withdrawn and the only option – as it stands – will be EVs of some form. Fleets need to plan ahead to avoid issues that could prove costly, both financially and operationally.

In some seven years, the only new car choices will be electrified

sBack in 2014, the Scottish independence referendum took place, Malaysia Airlines lost two planes and Germany won the world cup. In the automotive market, Citroën launched the C4 Cactus, a new Mondeo was introduced and the Jaguar F-Type made its bow. The point is, those events won’t seem very long ago to many, and yet in less time between then and now, if you’re after a new car, the only choice will be electric.

For a lot of drivers that won’t be a problem. Another car launched in 2014 was the BMW i8, which – although now no longer on sale – gave people a glimpse into what is possible with battery technology in cars.

However, while drivers are still resistant to change – for nostalgic, financial or conservative reasons –the EV juggernaut is one that can’t be stopped anytime soon. So, it’s best to accept the situation and get EV-ready.

For many fleets that will mean big changes and an acceptance of a ‘new normal’ in the industry. Thankfully, there is plenty of help at hand and advice on the best ways to go.

Insurance investigations

There’s encouraging news from the insurance industry when it comes to electric vehicles, with Churchill Expert reporting over 19 million drivers are ready to make the change.

Research undertaken by the fleet insurance provider stated that almost two-thirds (65%) of those surveyed would consider taking up a lease or car subscription. When it comes to reasons why leasing or subscribing to a car is appealing, cost effectiveness (44%) and the freedom to update more regularly when the range improves (29%) are the driving factors.

“Our research shows people are thinking ahead to how the car industry will look post-2030,” says Nicola Richmond, head of Churchill Expert flexible fleet partnerships (above). “It’s good to see people are already doing their research and it is also encouraging that so many are willing to make the switch to electric vehicles.

“We are fortunate to have so many options when it comes to acquiring cars now and motorists can opt to try something out for a longer period, without the commitment of buying it,” she adds. “As the market improves and more models of electric cars become available, it will allow more people the opportunity to take their first steps towards going electric.”

Charged and ready

Beyond the vehicles themselves, there is plenty for companies to consider when imagining their electric vehicle fleet. One of the big areas lies in what charging infrastructure – if any – could, would or should be installed in the workplace.

Like all infrastructure projects, it is vital that it’s right first time, and with EV chargers it is particularly paramount because they play a key role in transitioning an organisation and its stakeholders to a greener, cleaner future.

“The beginning of an EV charging infrastructure rollout programme is a critical time,” says Natasha Fry, head of strategic accounts at EV charging infrastructure company Mer (right). “Getting it wrong at the start can lead to all sorts of problems longer term and can ultimately cause delays in rollout. Whereas a positive EV charging experience can help to win over even the most sceptical hearts and minds.”

When it comes to workplace charging, the two main options are fast and rapid. Typically, a fast charger will recharge an electric car or light van’s battery in around four to six hours. As a result, they are ideal for most fleet and workplace settings where a vehicle is at the base for a longer period of time.

For EVs that require a much quicker EV charging time, rapid chargers can recharge an electric car in around 30 minutes. These types of chargers are ideal for scenarios where a quick charge and fast turnaround is needed. However, the cost of installing rapid charging is considerably more.

“Vehicles travelling less than 100 miles a day can be easily accommodated with fast chargers,” explains Fry. “Often, they can access a full recharge during their downtime while back at base. An example of this is our recent work with home delivery specialists Milk & More, which has plenty of time between shifts to charge its full fleet. However, vehicles travelling further afield might need a rapid charge through the day in order to meet their range requirements.”

Fry warns that going for a belt-and-braces option of rapid chargers only – just in case they are needed – might not be the most sensible route to take. Although they might appear the most desirable, they will also cost the most from an infrastructure and running costs point of view.

“At Mer we believe that you should install the right infrastructure, rather than chargers that will be more expensive and will not deliver a return on investment,” she explains. “Sometimes rapid chargers are the best option, but not always.

“We work with our customers on their journey, from specification through to installation, operation and maintenance. Fleet managers are not charging experts and they shouldn’t have to be – that’s our job.”

Data-driven

Sarah Gray, head of electric and alternative fuel vehicles at Rivus, believes that the best way to a successful implementation of EVs within a fleet is through driver engagement and quality data. “Some early adopters of electric vehicles found that vehicles didn’t have the range they thought they might, that vehicles may not be fit for purpose and that charging was more difficult than expected,” she recalls.

“However, with government incentives and investment in charging infrastructure, major breakthroughs in EV manufacturing, innovations in batteries and alternative fuels, there are many more options for commercial fleets embarking on a decarbonisation journey.”

Gray says that Rivus recognised very early that there are complexities in transitioning to an EV fleet, the main ones being initial costs, misinformation, potential negative driver experiences and lack of access to experienced servicing, maintenance and repair.

“In response, we’ve been testing eLCVs in real-life conditions, assessing several factors to identify how vehicles truly perform in operation,” she explains. “We’ve also invested in training and equipment so that all our LCV garages have EV-trained technicians on site. Our nationwide garage network has the necessary diagnostic equipment for EVs onsite, to ensure that vehicles are not off the road longer than they need to be.”

Rivus’ partnership with Allstar is also proving valuable, partly because it offers a simplified approach to invoicing and EV fleet management administration. Not only that, but it also enables the company to capture important data insights.

“Understanding the true cost of running EVs is important too,” says Gray. “It is not as simple as comparing the acquisition costs of internal combustion engine (ICE) vehicles to EVs as this usually looks solely at the vehicle cost and in-life services. It doesn’t include a major consideration of charging infrastructure or different charging profiles. Plus, other cost considerations such as energy prices, driver training, charge cards or accessing data insights and advice are often not included.”

Meanwhile, Thomas Maerz, chief development officer at Rivus, adds: “Our approach has always been data-driven and consultative to help fleets make informed decisions – and get drivers engaged at the start to ensure EV rollout and adoption is a success. Successfully operating an electric fleet often requires a change in driver behaviour. Drawing on informed insights to make decisions, partnering with best-in-class driver trainers and engaging with drivers on the rollout, is key to understanding the need of an EV and getting drivers on board with the transition.”

The sacrifice that isn’t…

We’ve covered the salary sacrifice mechanism in detail previously in Fleet World, but it seems like a lot more needs to be done when it comes to ‘selling’ it to SMEs. Churchill Expert’s research revealed that just 13% of small business enterprises offer this already. In slightly more encouraging news, over two-thirds (68%) are considering it, with 56% thinking about introducing it imminently (within the next 12 months). However, when it comes to drivers, just a quarter (24%) of those surveyed were aware of it and only 9% have participated. The numbers are expected to rise as more businesses have it on their radar and the next year could see a rise in both awareness and uptake.

Further results of the Churchill Expert analysis reveal that one third (33%) of drivers said access to the salary sacrifice scheme would have a positive effect on how they view their employer. One in six (17%) would consider switching jobs if a similar company was offering it.