Why you should be electrifying your fleet today

We all want to do what’s right for the planet, which is why many businesses are making the transition to electric company cars. But what are the other advantages of electrifying your fleet – or, in other words, what’s in it for your bottom line?

Electric vehicles (EVs) offer fleet managers greater efficiency and affordability as well as reduced maintenance costs when compared with internal combustion engine (ICE) and diesel vehicles. In addition, with new government regulations and (enforced) sustainability targets to meet, there’s never been a better time to electrify your fleet.

Sustainability vs budget
One of the key findings of LeasePlan’s EV Readiness Index 2022 is that EVs are more affordable than ever. Comparatively low energy prices for EV charging (versus skyrocketing diesel and petrol fuel prices) and more beneficial tax arrangements for EV drivers add to these cars’ cost competitiveness.

As Yuliya Lapenkova, Cost Category Spend Manager HR Services at Philips, points out, “There’s always a discussion about sustainability versus budget, and procurement managers are doing all they can to save money. Many companies understand the long-term cost-effectiveness of EVs, but they still have to find the money to invest right now, in very uncertain times. Nevertheless, prioritising sustainability allows companies to reap the long-term benefits for both the planet and their business.”

Let’s put these benefits into perspective: electric fleets are expected to have a 15–25% lower total cost of ownership (TCO) than ICE fleets by 2040. But there’s more …

“It’s also a lot simpler to maintain an electric fleet than a fuel fleet,” says Patrick Reich, co-founder and CEO at Bonnet, an app that simplifies charging processes. “For example, you can more easily track personal and professional use. Then there’s the convenience of automated billing. Yes, there’s a bigger cost up front, but you can always start by leasing – plus, the running costs are lower because EVs have fewer moving parts. This means your vehicles won’t need as much maintenance, your drivers can spend more time on the road and your fleet can be more productive. Over the long term, an EV fleet will bring costs down significantly.”

Push and pull factors working in parallel
All this gives a clear picture of the overall cost competitiveness of EVs. That said, EV uptake rates still heavily depend on local government initiatives in different markets.

The good news is that, according to LeasePlan’s EV Readiness Index 2022, many European countries provide strong government incentives, lower driver taxation and better VAT rates for EVs. In fact, many new and improved incentives were added across Europe just last year. In Greece, for instance, all taxis will have to be emissions-free as of January 1 2026, and by January 1 2030, this will apply to all new cars. There are also Greek initiatives working towards 100% emissions-free islands!

"It’s not just about incentives, though", says Hayden Lutek, Head of External Relations at LeasePlan. "There are also some regulatory push factors that mean EVs are increasingly the common-sense choice. For example, congestion charges, phased bans on ICE and diesel vehicles, clean-air taxes and low-emission zones all add to the pressure to make the switch. In that sense, it’s no longer only a question of reducing your CO2 emissions but also about your ability to simply keep your fleet on the road."

Sheer driving pleasure
The latest EV models make range anxiety a thing of the past. So, from the perspective of individual drivers, it’s easier than ever to focus on the benefits of driving an EV, rather than being put off by potential disadvantages.

Hayden Lutek explains that “EV drivers tend to be more satisfied with the overall driving experience – EVs have great acceleration, are fun to drive and are nice and quiet! Let’s face it, it’s also good for your image, especially in this age of heightened climate concern and today’s big focus on ESG.”

“Large companies certainly see the reputational benefit of switching to an EV,” agrees Yuliya. “Transitioning your fleet is an important and very visible way of showing the world you’re committed to your ESG targets and being a responsible corporate citizen.”

What’s next?
LeasePlan is leading the transition to zero-emission mobility and has set itself the goal to achieve net-zero tailpipe emissions from its funded fleet by 2030. As a founding member of the EV100 – the global initiative of forward-looking companies committed to accelerating the transition to EVs – sustainable mobility is at the heart of everything we do.

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What’s next?