Integrating light commercial EVs into your fleet

The commercial vehicle landscape is witnessing a paradigm shift, with a number of electric vans, utilities and small trucks to hit the Australian market in the next few years.

These eco-friendly alternatives to combustion-engine vans provide a sustainable solution to the growing concerns over emissions from transport.

For business owners thinking about how an electric van would work in their fleet, a number of things need to be considered to ensure a smooth transition.

Total Cost Ownership Cost (TOC)

Electric vehicles usually have a higher upfront cost compared to their diesel or petrol counterparts. This is primarily due to the expense of the battery.

However, this initial investment can be mitigated through government incentives, grants, and potential tax benefits, which vary by state.

Assessing the Total Ownership Cost, including maintenance, charging infrastructure, and operating costs, will provide a clearer picture of the long-term financial implications.

Operational requirements

A careful examination of the operational needs, including payload capacity, range, and daily travel, is crucial.

Electric vans and small trucks offer different specifications; this is why selecting a model that aligns with your operational requirements is important.

This ensures that the electric vehicle can meet the daily demands of your business without limitations.

Charging infrastructure

Finding the right charging solution is the biggest challenge when adding electric vehicles to a fleet.

Business owners should consider the availability and location of charging stations and consider an investment in on-site charging solutions if the vehicles return to the depot or warehouse each day.

The choice between fast and slow charging stations will depend on the downtime available, and the investment in charging infrastructure should be factored into the overall cost.

Range consideration

Electric light commercial vehicles come with different battery sizes, which determines how far they can travel on a single charge.

The sizes of the battery should provide a driving range that meets your business’s daily route requirements, with some buffer factored in to accommodate any unplanned detours or tasks.

It’s important to consider the impact of payload, driving conditions, and weather on the range to avoid any operational disruptions.

Incentives and legislation

Fleets are an important component of the transition to electric vehicles in Australia.

State governments have developed their own incentives to support businesses make the leap.

It’s essential to explore the available incentives and factor them into the investment calculation.

Staying up to date with the evolving legislative landscape around emission standards and environmental regulations is also vital to ensure compliance and anticipate any impending mandates or restrictions.

Sustainability and corporate image

Beyond operational and financial considerations, the adoption of electric vans is a significant stride towards sustainability.

This not only aligns businesses with global environmental conservation efforts but also enhances your corporate image.

Customers are increasingly favouring companies with green initiatives, and adopting electric light commercial vehicles can be a compelling selling point and a differentiator in the market.

Maintenance and downtime

Electric vehicles have fewer moving parts than their internal combustion engine counterparts, resulting in lower maintenance costs and downtime.

However, availability of spare parts and qualified technicians should be considered, especially in areas where EVs are not as popular.

Establishing relationships with reliable service providers can reduce potential maintenance challenges.

Employee training

Introducing electric light commercial vehicles to your fleet necessitates comprehensive training for staff to ensure they can operate and maintain them, as well as understand charging procedures and range management.

Ongoing training and support will help in addressing any apprehensions and help create a positive attitude towards new technology.

Resale value

The resale value of all electric vehicles is one area of uncertainty for Fleet Managers and business owners.

There aren’t enough vehicles being sold in the second hand market to accurately forecast a future value.

While asset depreciation rules on motor vehicles are well known, the actual sale value is used to determine TOC calculations.

Looking at financing arrangements that offer a guaranteed future value (e.g. operating lease), or car subscription, is one way for a business to reduce the risk.

Insurance and liability

Insurance premiums for electric vehicles may be higher due to the initial cost and the relatively higher repair costs.

It’s important to engage with insurance providers early in the planning process to understand the premiums and explore options to minimise insurance costs.

Additionally, understanding the liability implications, especially related to the charging infrastructure, is crucial.

Incorporating electric light commercials into a business fleet is a big step that involves many considerations. From operational needs, financial implications and legislative compliance there are quite a few different aspects to consider.

By delving into these aspects business owners can make well-informed decisions and align their operations with the global shift towards sustainable and eco-friendly business practices.

In this evolving market landscape, staying informed and adaptable is the key to leveraging the benefits of electric commercial vehicles and driving the business towards a greener future.