Four fifths (80%) of commercial fleet officers aim to have at least 25% of their fleets comprised of electric vehicles by the end of the decade, a new study by Frost & Sullivan, commissioned by WEX, has found.
The study, The Commercial EV Transition: Global Insights on a Mixed-Energy Fleet Future, highlights a growing shift towards mixed-energy fleets, among operators, with some 42% of respondents indicating that ‘half or more’ of their fleet could be electric by 2030.
‘A gradual process’
“Organisations know EVs can benefit commercial fleets, but electrification is a gradual process that involves more than just vehicle replacement,” commented Carlos Carriedo, chief operating officer, Americas Payments & Mobility at WEX.
“This report’s findings indicate a fleet manager’s focus isn’t on ‘if’ or ‘when’ to transition but on ‘how best.’ A key strategy is recognising the value of mixed-energy fleets for a smooth and effective shift to electrification.”
The global report suggests that adoption rates for EVs can hinge on a number of factors, including the region, the nature of the industry, and the scope and size of an organisation.
“Operators will maintain a mix of traditional and electric vehicles for the foreseeable future, introducing complexities in operations, infrastructure, energy sourcing, and payments,” Carriedo added. “A mixed-energy fleet approach mitigates risk, allowing businesses to adapt, learn, and, if they desire, transition fully to electric mobility when the infrastructure is ready.”
The role of decarbonisation
The need for greater decarbonisation is cited as a key driver for this transition, with 70% of organisations highlighting it as an important element of their business strategy.
While many respondents cite the high upfront costs of electrification (64%), half of the surveyed organisations have already invested in charging infrastructure, and 78% offer on-site charging.
Elsewhere, operational efficiency remains a priority, with fleet operators grappling with challenges like route planning (58%), data collection (49%), and integrating management systems for mixed fleets (40%). The study also notes that top concerns for fleet managers include fuel costs (67%) and operational expenses (66%).
“The mixed fleet adoption strategy enables businesses to acclimate to the nuances of EV integration gradually, ensuring operational efficiency throughout the transition period,” added Jay Collins, SVP & GM, EV & Mobility at WEX. Read more here.
Read more: Dual-voltage charging stations will be key to driving global electric vehicle adoption
