A better question might be – are Fleet Managers ready to switch to EV’s now?

Before answering that, it is worthwhile to have a look at where things are headed – both from a regulatory perspective and from the viewpoint of almost all vehicle manufacturers.

Well, we know that – give or take a little ‘wiggle room’ in the EU on timings – the market switch to EV’s is timed and inevitable.

If you look at the investment decisions being made by all vehicle manufacturers, everything is focused on clean technology and with electric taking the lion’s share of both focus and hard cash.

JLR are a good example of the commitment to the future

You have to look no further than Jaguar Land Rover (JLR) for a clear example of the huge commitment being made in this – now quick-stepping – march towards an EV future.

JLR have announced they will invest £15 billion over the next 5 years which includes significant investment in models, production plants, AI and software, and of course people. It’s not going too far to say they (JLR) are re-imagining their future and are creating a strategic plan that delivers it.

So where does that leave the Fleet Manager?

Well it leaves him or her with a decision around timing only. In other words, when not if.

It is of course unfortunate – some cynics would say however, inevitable – that electricity prices have reached levels that were not anticipated 2 years ago. Which means the cost of ‘fuel’ for an EV is not delivering the advantage that we all thought it would a few years ago.

Combine this with concerns over the initial cost of an EV and you may be forgiven for thinking Fleet managers are in for a difficult time.

However, there are upsides in the equation as well:

There are real benefits for a fleet to switch to EV’s

Since vehicle emissions are now accepted as the UK’s main cause of carbon emissions, a switch to EV’s will reduce a fleet’s carbon footprint and therefore the overall carbon footprint of the business the fleet belongs to.

Another benefit is that ‘there’s money in them there.. batteries’. Or more accurately, there are significant cost savings to be made by switching the fleet to electric.

Lower running costs can make EV’s attractive right now to the Fleet Manager

Reduced running costs, lower maintenance costs, government grants all help. The average running costs of an EV over petrol or diesel can be up to 49% lower. – Significant stuff!

Maintenance of EV’s also tends to be lower cost as there are less moving parts and what there are tend to be considerably simpler than in petrol or diesel engine vehicles (or hybrids for that matter).

This gets magnified as the number of vehicles in the fleet goes up, with cost savings per vehicle driving cost efficiencies that drop immediately to the bottom line and contribute to general cost reductions for the company.

Also, if your fleet regularly has to go in and out of cities where there are Clean Air Zones and or Congestion Charges linked to emissions, there are immediate and obvious – perhaps daily – savings to be had.

So, coming back to the question, should a Fleet Manager start switching to EV’s now?

The answer is probably yes.

A survey of Fleet Managers by Churchill Expert (Direct Line’s fleet insurance arm) in 2022 surfaced the view by Fleet Managers that whilst petrol and diesel vehicles currently make up approximately two thirds of fleets (with 16% being hybrids) and pure EV’s only making up just under 20% today; the expectation is that EV’s will rise to 37% and hybrids to 20% in the next 2 years.

It looks like the argument in favour of beginning to switch is growing, and Fleet Managers should perhaps focus on optimising a cost-based schedule that times the conversion to EV’s to deliver maximum benefit as quickly as commercial realities will allow.