Commercial sales of electric vehicles have continued to grow in the U.S., partly because of more choice in EV models, support from federal government and state representatives, and falling battery prices.
Initial prices of EVs are always higher (for now) than their internal combustion engine (ICE) vehicle equivalents, but EVs’ superior performance, lack of maintenance, reasonably priced electricity, ease of driving, and regular use enable EV fleets to recoup their up-front costs fast.
Reportedly EV manufacturers are finding it easier to market EVs to businesses than individuals and there are a variety of reasons for that. One of them is that businesses know they’re going to use vehicles for as long as they possibly can, and tend to focus more on the ultimate price of a vehicle rather than be scared off by the initial price tag. According to NPR, “Where an individual might focus on the sticker shock, a company is more likely to consider the lifetime cost of the vehicle.”
Replacing an entire fleet immediately may sound daunting, but gradually replacing a fleet can ultimately save tens of thousands. McKinsey Sustainability even predicts EV fleets will cost 15-25% less than ICE fleets by 2030.
There are some great reasons for businesses to switch to electric now. EVs are cost effective and require little to no maintenance compared to gas-fueled vehicles.
Big businesses with EV fleets can also reduce pollution in a surrounding area fast, improving public health. Most are looking for green solutions to the pollution they create. They are interested in improving their sustainability efforts, and want to let the public know about the positive environmental improvements they are making to improve air quality and public health. And many are required by law to meet standards for pollution control.
At a time when respiratory disease is a bigger worry than ever, help your community be safe by reducing asthma and allergies in your community. Beyond public health, there is also an issue of EV infrastructure creating jobs when so many have been lost. Mass deployment of chargers to keep up with fleets can create many jobs and secondary income streams for businesses.
State and federal initiatives are increasing EVSE infrastructure across the country as a part of Covid recovery efforts. Some states like California are expanding initiatives to make EV trucks an immediate part of their future.
California just began an initiative to make all trucks- from medium duty models to big rigs- electric by 2024, potentially causing enormous changes in the trucking industry. “California is once again leading the nation in the fight to make our air cleaner, becoming the first place in the world to mandate zero-emission trucks by 2045,” Governor Gavin Newsom said.
McKinsey’s findings go on to suggest there may be 8 million new individual EVs that are parts of fleets on the road by 2030, up from under 5,000 in 2018. All those vehicles will need chargers, approximately 13 million new chargers just to keep up with fleets. Serving these new fleets is a potentially $15 billion business.
Replacing gas-fueled fleets with electric vehicles can save money fast, offer great word of mouth and public relations, help the community, and get a head start on an electrical future.