The transition to electric vehicles (EVs) is well under way and is unstoppable, and fleet managers everywhere are working out how to manage this transition. At the end of August 2023 there were 850,000 EVs on UK roads, and 265,000 EVs were registered in the UK in 2022. Those figures are growing steadily all the time and are only going to continue one way, as EV technology improves and the market continues to accept it. So how does this affect the fleet manager and how do they prepare for the transition?
The principles of EV fleet management
For the fleet manager the move to EVs signals good news in the sense that, if anything, their job becomes simpler. EV fleet management still focuses on the same core principles:
- Reducing costs
- Productivity/efficiency
- Compliance
And on a day-to-day basis the management of a fleet of EVs gives the fleet manager more control, and because EV technology is developing so rapidly, this situation is likely to improve. Let’s look in more detail at how EVs have changed the fleet management function.
The benefits of EV fleet management
The core functions of the fleet manager can be applied to both EVs and petrol/diesel vehicles, but there are significant differences in how the fleet manager needs to approach these tasks when managing EVs. Here are some examples:
- Service and maintenance – there are far fewer moving parts in an EV and hence maintenance costs should be reduced and the task becomes much easier to manage. Scheduling maintenance visits can be challenging, whatever size fleet you have, but with an EV you have no engine, no spark plugs, no oil or transmission fluid. Essentially there is less that can go wrong, and this can be factored into how you contract out maintenance work and how long vehicles are likely to be off the road. Of course this also reduces your costs.
- Route planning – you will already be using software packages to help you plan journeys and reduce wasted mileage, but with EVs you also have to factor in charging and battery capabilities. The driving range of EVs is improving all the time and the charging infrastructure in the UK is also advancing rapidly, this makes it much easier to plan journeys to match the same efficiency as with petrol and diesel vehicles, but you do need to ensure drivers have access to charging options and that routes are planned with this in mind. The major benefit of EV route planning, however, is that mile for mile, EVs are much cheaper to run than petrol and diesel vehicles, due to the unit cost of electricity, and a business can also help itself by installing its own charging facilities and therefore having much more control over charging practicalities and cost.
- Sourcing vehicles – every major vehicle brand has incorporated EVs into their core range, so there is now a wealth of options when sourcing the right vehicle for your needs. Furthermore, EVs are becoming more affordable and leasing deals and salary sacrifice schemes are offering incentives to make EVs a more cost-effective choice. Sourcing the right EV in terms of efficiency, range and practicality should be no problem.
- Compliance- because EV technology is advancing all the time, new vehicles have better fuel efficiency and battery life, but they also have better safety features which helps to reduce accidents and hence accident costs and insurance costs. A major compliance benefit of EVs, however, is in benefit-in-kind (BIK) tax. This is far cheaper for EVs when compared to petrol and diesel vehicles, and also hybrid vehicles, and is set at 2% for EVs for the next two financial years. There are also VAT benefits for the business too. And in terms of compliance, of course the primary objective of EVs is the sustainability benefits. A range of EVs will help the business meet its carbon reduction targets and the fleet management function is absolutely central to that.
Professional EV fleet management from the experts
So as you can see, there are huge advantages to the fleet manager in transitioning to electric vehicles, and over the next few years this should allow the fleet manager to have more control over budgets and vehicle sourcing and more visibility in terms of fuel efficiency and route planning. If you need any guidance and advice on how to manage the transition to EVs as a fleet manager, speak to our experts at Total Motion. We have vast experience in this field and have developed robust procedures to help the fleet manager with this change, so get in touch today.
