Fleet electrification

Electrifying a fleet can offer a lot of benefits. In the following, we delve deeper into these benefits, exploring how each contributes to making fleet electrification a compelling choice for transport businesses aiming to modernise their operations and reduce their ecological footprint.

Environmental impact and sustainability

Fleet electrification significantly cuts CO2 emissions as electric vehicles don't rely on petrol or diesel, thus drastically reducing air pollution and supporting efforts against climate change.¹ The transportation sector, being a major contributor to greenhouse gas emissions, can see a meaningful reduction by transitioning to EVs. Heavy goods vehicles and buses were responsible for almost a third of CO2 emissions in the EU in 2022.2

Good to know

Environmental and sustainability efforts in the electrification of vehicle fleets are becoming increasingly important due to the EU's new stringent CO2 standards for heavy-duty vehicles, including trucks and buses. The European Parliament and EU member states have agreed to significantly reduce CO2 emissions from these vehicles by 2030, by 45 percent by 2034, 65 percent by 2039 and by 90 percent by 2040 compared to 2019 levels.³ This legislative move supports the EU's wider climate targets and makes the electrification of vehicle fleets an important step towards meeting these targets and the EU's transition to zero-emission mobility.

Economic advantages

Economically, the shift to electric fleets offers notable long-term benefits, primarily through reduced operational costs. Electric vehicles have lower fuel expenses since they run on electricity rather than gasoline or diesel, which can be a major saving given the high cost of fuel. Additionally, EVs require less maintenance compared to internal combustion engine vehicles because they have fewer moving parts and don't need oil changes, transmission flushes, or other routine engine maintenance.

Importantly, the total cost of ownership (TCO) for e-fleets is generally lower due to these reduced energy and maintenance costs, coupled with the diminishing cost differences between electric and ICE vehicles as technology advances and economies of scale are achieved in battery production.⁴

Brand enhancement

Companies that choose to electrify their fleet are often seen as forward-thinking and environmentally conscious, which significantly strengthens their brand image. This commitment to sustainability can enhance the brand's reputation by demonstrating a commitment to reducing carbon emissions and promoting a cleaner, more sustainable transport system.

This alignment with environmental values attracts new customers, investors and employees who care about sustainability. Consequently, electrification helps companies meet increasing consumer and regulatory demands for environmental responsibility, further strengthening their market position and competitive advantage.1

Government incentives and regulatory support

Governments worldwide are supporting fleet electrification through various incentives. In Europe, one significant initiative is the European Union's "Fit for 55" package, which includes stricter CO2 standards for different vehicles. For the transport sector, this also means that there will be hydrogen refuelling stations for cars in all urban hubs from 2030.

Additionally, the EU Clean Vehicles Directive sets minimum requirements for the procurement of clean public buses and trucks, with targets ranging from 33 to 65 percent clean buses and 7 to 15 percent clean trucks between 2026 and 2030.⁵

Challenges of an e-fleet can include high initial costs and the need for extensive charging infrastructure. Additionally, adapting to new technologies requires training and changes in operational procedures. In the following, we'll explore these challenges in more detail, examining how they can impact the transition to electric vehicles and what businesses can potentially do to mitigate these issues.

Initial costs

One of the primary challenges of fleet electrification is the high initial cost of EVs. These costs are typically higher than those for comparable internal combustion engine vehicles, largely due to advanced technology and the expensive batteries required for EVs. In a 2022 report, PricewaterhouseCoopers International (PwC) indicated that by 2030, the additional costs for battery electric trucks in long-distance transport are expected to be approximately 90,000 Euros higher than those for internal combustion engine trucks. PwC projects that this cost difference will diminish over the subsequent five years.⁶

Charging infrastructure

Another significant challenge is developing sufficient electric truck charging infrastructure. Companies must invest in charging stations and possibly upgrade electrical systems to accommodate the increased demand, which can be costly and logistically complex.

Technological Adaptation

Adapting to new technology in fleet electrification also involves integrating advanced digital tools for fleet management and optimising charging strategies to improve efficiency and vehicle uptime. The need for updated IT infrastructure to support these technologies can also pose challenges, as can ensuring compatibility with existing systems. Further complexities arise from the necessity to comply with evolving regulatory standards that govern electric vehicle operations and emissions. These transitions may require substantial investments in technology and personnel training to ensure smooth integration and sustained operational success.

Define operational needs: Start by assessing the specific requirements of your fleet. Consider factors like vehicle types, range requirements, and daily usage patterns to determine which vehicles are best suited for electrification.
Analyse charging load demand: Calculate the total power demand based on the number of vehicles, their battery capacity, and charging schedules. This will help in planning the necessary charging infrastructure.
Select suitable vehicles: Choose the appropriate electric vehicle models that meet the operational criteria established in the first step. Consider factors like payload capacity, range, and durability.
Develop infrastructure plans: Based on the charging load analysis, design and implement charging stations. Consider the placement of charging stations to maximise efficiency and convenience for vehicle recharging.
Pilot testing: Before fully transitioning, conduct a pilot test with a few electric vehicles to identify any potential operational challenges and assess the feasibility of a larger-scale switch.
Training and support: Provide training for drivers and maintenance staff to familiarise them with electric vehicles and charging procedures.
Monitor and optimise: After deployment, continuously monitor the performance of the fleet and the charging infrastructure. Use data gathered to optimise operations and maintenance for better efficiency.

UTA Edenred facilitates fleet electrification through its UTA eCharge® service, streamlining the charging process for companies. This service connects drivers to an extensive network of over 750,000 public charging points across 28 European countries. With charging capabilities ranging from 3.7 kW to 400 kW, UTA eCharge ensures that electric vehicle charging is convenient and efficient wherever you are. Companies benefit from transparent and favourable pricing under the UTA Edenred standard tariff, enhancing the cost-efficiency of managing a fleet's charging needs.

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