Electric vehicles have been all over the news lately. And you’ve likely seen them in the news and on the roads. Charging stations are becoming more common at your local gas station, and you’re more likely to see electric vehicles on the road. What does this mean for fleets? Well, if you’re in the industry, you’ve likely heard of many fleets considering switching to electric vehicles. Why? Not only are they more environmentally conscious, but they can also be a fiscally wise decision. While electric vehicles are more expensive than gas-powered vehicles to purchase, there are long-term cost-saving benefits to consider. Let’s talk about those benefits now.
Lower Fuel Costs
In the past year, fuel costs have been an exceptionally high point of concern. They’ve been hitting record highs and hurting fleet businesses more than anyone. However, fleets with electric vehicles have little to worry about when it comes to fluctuating gas prices. The question remains, is fueling with electricity cheaper than fueling with gasoline? AMPLY reports that in 22 metros, charging light-duty vehicles with electricity is 44% cheaper than fueling with gasoline. It’s 43% cheaper for medium-duty vehicles and 37% cheaper than diesel for heavy-duty fleets. Considering that some fleets will spend 30.4% of their revenue on fuel in 2022, this would be a massive improvement for the industry.
Lower Maintenance Costs
It may also surprise you to save money on maintenance by switching to electric vehicles. Electric vehicles have fewer mechanical parts than gas-powered vehicles. In fact, electric vehicles cost up to 22% less in maintenance and repair than their gasoline counterparts. The average maintenance cost for an electric vehicle during the first three years is $77. For a gasoline vehicle, that number is $228. You’ve likely noticed the rise in maintenance expenses in the past several years. There’s no better time than the present to invest in a vehicle with fewer mechanical parts that need maintenance.
Challenges of Fleet Electrification
Of course, while there are benefits to electrifying your fleet, there are also challenges to consider. This is a relatively new technology that hasn’t been widely adopted yet. Let’s go over some of the challenges to consider.
- Initial Cost: Electric vehicles are undoubtedly more expensive than gasoline vehicles. However, government rebates or subsidies may be available to reward businesses for making the switch. Also, remember the long-term savings as you weigh the overall cost and benefit.
- Infrastructure: You must determine if you’ll be able to charge your vehicles consistently. In some parts of the country, electric vehicle charging stations may not have taken hold. You can add a charging station on-site, but if you are operating a long-haul fleet, always be sure there are places to charge your vehicles along the route.
- Driver Training: This switch will impact your drivers more than anyone else. Keep them in mind and ensure they are ready for the change by ensuring they know how to operate, charge, and maintain these vehicles.
Fleet Electrification: The Way of the Future
Electric vehicles will continue to grow in popularity in the coming years as our country advocates for sustainable business practices. Fleet electrification ensures that your business stays up to date with the latest technology on the market. While also lessening the environmental impact your business will have on your community.
Your team deserves the best technology to help make their jobs easier and less stressful. Having end-to-end software for your fleet is another way to ensure you have the best technology on your side. Learn how our products can help service your fleet and support your drivers when you schedule a demo or contact us.