The pressure to switch to EVs is ever-present, but the message being received by fleet decision makers is surprisingly inconsistent. In the transport sector, we’re confidently told that EVs are the only way forward - and we need to lead the charge. But the charging infrastructure is inadequate and unless you’re one the big players dealing directly with EV OEMs, then leasing terms are often unappealing.
In 2023, the UK government pushed back its target to phase out the sale of new petrol and diesel vehicles. This came after a year of negative press about the UK and Ireland’s readiness for EVs.
So, fleet managers are within their rights to ask, if governments don’t care, why should they?
Reluctance or Struggle
There is a tendency to paint fleet managers as reluctant to make the switch. But what’s behind that reluctance? For small to medium size fleets, struggle might be a better word.
According to research from Alphabet last year, 45% of fleet managers were struggling to find the time, resources and expertise to make the switch.
So even without the added considerations of charging infrastructure, leasing terms and changing government policy - decision makers are too busy with the day-to-day to actually work out what a switch looks like for them.
It’s a catch-22, where the switch is necessary, but taking meaningful steps means carefully assessing the practicalities, for which only larger fleets reliably have time.
Real Support Not More Work
It’s all well and good telling decision makers they need to switch and they need to do it yesterday. You can be as willing to switch as possible, but it would just be bad business to just take the first lease agreement that came along and hope for the best. So managers need time to assess options, whilst also managing a busy fleet.
That sounds a lot like extra work that isn’t going to immediately help the day-to-day running of an organisation.
The answer here is data, more specifically, data insights. Telematics passively collects data and transport management software presents it in a way that is simple and straightforward to digest. So, when you are presented with an EV from a dealer or lease company, you can quickly compare performance with the required performance of a vehicle, which takes the risk out of the decision. It’ also becomes possible to answer questions about vehicle routes and charging infrastructure without taking a week away from your day job to work everything out on paper. All of a sudden, it becomes possible to identify vehicles that can be sensibly replaced by EVs.
Without these insights, managers are left with either their best guess or reams of data collected in spreadsheets or via gps, which is useless unless it can be made sense of - which is no simple task.
On top of telematics data, there is a need for dealers, leasing companies and the government to be clear, consistent and trustworthy in the guidance being offered. Again, telematics data gives managers the opportunity to push back on claims being made about suitability, and can help in the negotiation process.
Afterall, it’s fleets that are going to be the backbone of electrification, as was highlighted Lorna McAtear, Head of Fleet at National Grid, late in 2023:
"We know we're going to be the driving force this year and why do we know that? Because the manufacturers have come back to us offering discounts. Fleets will continue to be the backbone of this change.”
Time To Unplug?
Ignoring the ultimate need to switch to EVs is just not an option. Of course, this doesn’t mean that all fleets should dive in at the deep end. Organisations would be well advised to be cautious about how and when they introduce EVs into the fleet. Smaller fleets cannot withstand the same level of disruption as early adopters. Also, they are less able to negotiate leasing or purchasing deals that allow for some trial and error. The question then becomes how to introduce EVs in a way that is sensible, non-disruptive and positive.
Though there is a lot of caution around EVs, larger fleets are slowly proving the concept, and the traditional obstacles to electrification are being overcome. Fleets of all sizes must rely on the experience of early adopters, whilst also leveraging telematics data to understand exactly how a potential new EV addition would perform in their fleet.
