Electrification Is Not for Every Fleet – Green Fleet

The push toward fleet electrification is undeniable, driven by declining battery costs, regulatory mandates, and the promise of lower total cost of ownership (TCO).

Nonetheless, because the industry races toward an electrical future, not every fleet should make the leap just yet. For fleet managers, directors, and other stakeholders, electrifying should be grounded in operational realities, financial considerations, and strategic foresight.

Electrification is just not a one-size-fits-all solution — it really works brilliantly for some but stays impractical for others. Here’s find out how to evaluate whether it’s right to your fleet.

When Electrification Works

Electrification can yield significant advantages when certain foundational elements are in place.

Fleets with predictable duty cycles, strong preventive maintenance practices, and data-driven optimization strategies are higher positioned to succeed with electric vehicles (EVs). These fleets can leverage EVs’ lower operating costs and reduced emissions while avoiding common pitfalls.

• Operational Discipline: EVs thrive in structured environments where routes are predictable, vehicles are charged consistently, and drivers adhere to operational best practices.
• The Right Use Case: Strategic approaches that give attention to the benefits of specific models or technology capabilities provide the most effective likelihood for achievement. For instance, last-mile delivery fleets using purpose-built EVs like Rivian vans have seen improved efficiency and driver satisfaction attributable to vehicle design tailored to their specific needs.
• Stakeholder Relationships: Strong relationships with stakeholders — customers, landlords, and utilities — can unlock opportunities like destination charging at customer facilities or shared infrastructure investments. Fleets that work closely with partners can reduce costs and enhance operational efficiency.
• Long-Term Planning: Fleets with a forward-looking strategy spanning 5–10 years are higher equipped to navigate the complexities of electrification, which incorporates planning for infrastructure upgrades and aligning procurement decisions with long-term business goals.

When Electrification Falls Short

Despite its promise, electrification isn’t suitable for each fleet — no less than not yet. Several aspects could make the transition difficult or impractical:

1. Poor Fleet Fundamentals: There are things every fleet manager needs to be doing to get essentially the most out of their operations. These include preventive maintenance, standard operating processes, residual value management, and leveraging telematics data to drive continuous improvement. Without having a great handle on fundamental fleet performance indicators like vehicle availability (or uptime) or TCO (e.g., per mile, lifetime value), the advantages of EVs could also be lost, because it’ll be tough to know the before and after.
2. Poor Access to Capital: The upfront investment in EVs and charging infrastructure stays a big barrier. While government incentives can be found, they usually are not guaranteed and should not fully offset the prices. Revolutionary private financing options (e.g., EV as a service) have emerged to deal with this, but often don’t work well for very small fleets or those without reliable revenue forecasts.
3. Infrastructure Limitations: Charging infrastructure development is complicated, time-consuming, and expensive. More so for fleets without dedicated facilities. Retrofitting existing sites often requires coordination with utilities and landlords, which regularly drives delays.
4. Technology Constraints: Fleets with heavy-duty vehicles, heavy payloads, or long-distance routes may find current EV technology insufficient attributable to limited range and payload capability. For the reason that technology remains to be relatively young, options usually are not ubiquitous for all applications yet. In such cases, alternative solutions like hybrid systems and other low-emission fuels could also be more viable to drive down costs and emissions
5. Market Immaturity: The EV market remains to be evolving, with many manufacturers specializing in light-duty vehicles while medium- and heavy-duty options remain limited. Moreover, the recent bankruptcy of startups like Nikola or Canoo highlights the risks of counting on less-established OEMs even once they provide essentially the most modern solutions.

Exploring Alternatives

For fleets not ready to completely electrify, incremental solutions can still deliver advantages:

• Hybrid Models: Combining electric components with existing powertrains allows fleets to cut back costs and emissions while maintaining operational flexibility. Technologies like Range Energy’s battery-powered trailers can improve fuel economy without requiring a whole powertrain conversion.
• Infrastructure Partnerships: Collaborating with landlords, utilities, or other charging solution providers (e.g., charging depots and other fleets) to share infrastructure costs could make charging more accessible and inexpensive.

The Bottom Line

Electrification is a transformative opportunity but additionally a complex undertaking. Fleet managers must weigh the advantages against operational realities and financial constraints.

For some managers, getting the basics right or waiting until the technology matures for his or her use cases is prudent. For others, embracing electrification now could unlock immediate gains in efficiency and sustainability.

Electrification isn’t for everybody — yet — but every fleet should start preparing today by assessing its potential and constructing a roadmap for the longer term. Whether you’re able to dive in or take a cautious approach, success lies in thoughtful planning and informed decision-making.

In regards to the Writer: Laolu Adeola is the owner of Leke Services. He’s a management consultant and enterprise investor with 15 years of experience in mobility technology across automotive, energy storage, charging infrastructure, aerospace, batteries, manufacturing, and more. He helps fleet managers navigate the mobility energy transition. 

This text was authored and edited in line with Automotive Fleet’s editorial standards and elegance. Opinions expressed may not reflect that of Automotive Fleet.