EVs: The New Normal
Sustainability is at the forefront of most businesses' agendas, making the transition to EVs more common in the fleet management industry. This, coupled with the plummeting cost of EV ownership and the pace at which technology is developing, sweetens the deal.
The Evolution of Electric Vehicles
In a post-pandemic age, we observed the effects of a dramatic decrease in mobility on sustainability. As consumers all over the world were mandated to stay home, it appeared that the environment was taking a massive sigh of relief.
Amidst the destruction, the pandemic breathed life into more conscious consumerism and a greener outlook for many. In addition, the volatility of fuel prices, the plummeting costs of EV ownership, and the growing penalties enacted on those who own conventional or ICE (internal combustion engine) vehicles have also contributed to EVs picking up steam among the mainstream.
The First Electric Vehicles
Despite the surge in EV adoption, electric vehicles have been around for longer than one would think. In fact, electric vehicles date back to the 1800s, with Robert Anderson developing the first working electric car in the 1830s. Anderson's vehicle was powered by a disposable battery that used crude oil. The early versions of EVs were likened to carriages, but they were burdened by non-rechargeable batteries, rendering them impractical.
However, electric cars did not become more practical until the 1890s, when a series of technological breakthroughs regarding batteries made them possible. Leading the charge was a chemist from Des Moines, Iowa, named William Morrison. Morrison's electric carriage was a traditional 19th-century horse-drawn carriage converted to house a battery. It could transport 12 people at a maximum speed of 32 km/h.
New York Taxi drivers were some of the first commercial users of electric cars, and taxi drivers in Berlin and London quickly followed suit. Similarly, large hotel groups used fleets of electric vehicles to transport their guests. It is estimated that one-third of cars were electric in 1900.
The Rise of the Motorised Vehicle
As we entered the 20th century, many people made the shift from traditional horse-drawn carriages to motorised vehicles. This resulted in a rise in steam, gasoline, and electric automobiles. At this time, the market was dominated by steam-powered vehicles, with electric cars coming in a close second.
In the 1870s, steam vehicles lost their, well, steam. This was because these vehicles took too long to start up, and they needed to be regularly refilled with water to function, rendering them impractical.
At the time, gasoline or fuel-powered vehicles required drivers to change gears and crank to get started. They were also noisy and emitted harmful pollutants. As more people gained access to electricity, electric cars became a more popular option. They were quiet and easier to manoeuvre, making them popular among the upper class.
As electric cars became more popular, big names entered the fray. Porsche's founder, Ferdinand Porche, developed the first hybrid car in the 1900s. Around this time, Thomas Edison and Henry Ford teamed up to attempt building an affordable EV. However, this project fell by the wayside.
Transitioning to the Internal Combustion Engine
As gasoline became more accessible, internal combustion engines (ICEs) became more affordable and, thus, more mainstream. Where electricity was only available in cities, gas was cheap and readily available. This resulted in a stagnation in electric cars for most of the 1900s, and they were almost obsolete by the mid-1930s.
The technology surrounding ICE vehicles also matured. Automatic starters were introduced, so the driver no longer had to tediously turn the crank to start the vehicle.
The Electric Vehicle Comeback
In the 70s, we saw a resurgence of interest in electric cars as oil prices soared and gasoline shortages transpired. People sought a solution to oil dependence, and so engineers and automakers explored alternative fuel options.
General Motors' EV-1 was introduced in 1996, pioneering modern electric cars. This vehicle was powered by lead-acid batteries, which could travel up to 160 km per charge, while the nickel metal hydride battery models could travel a maximum of 225km. Unfortunately, these vehicles were too expensive to produce, so production was halted.
Hot on their heels was the Toyota Prius, released in 1997. When speaking of EVs, this would be one of the first most people would remember as it was the first mass-produced hybrid electric vehicle. Due to its environmentally-friendly nature and the rising gas prices at the time, the Prius was a major success since its worldwide release in 2000.
In 2003, we saw a major turning point in modern EVs when Martin Eberhard and Mark Tarpenning formed Tesla Motors. In 2008, Tesla launched its lithium-ion-powered Roadster, which could travel an unprecedented 320km on a single charge.
The EVolution
Tesla's lithium-powered vehicles birthed a new era of EVs as we know them today, and most of the electric cars being manufactured today are powered by the same technology.
As new battery technology was developed, EVs became more affordable as the cost of manufacturing them lowered. This led to many automotive manufacturers entering the electric game.
The use of electric vehicles has skyrocketed to around 10 million in 2022, making the industry worth over $250 billion. This is a far cry from the 3 million recorded EV drivers in 2017.
With the growing emphasis on global warming, carbon emissions, and greener operations, we are seeing more consumers make the switch to electric vehicles (EVs). Whether they are bikes, cars, or trucks, the evolution of EVs is not slowing down.
How Fleets are Driving Electrification
Whether it's trucks, buses, taxis, or rideshare vehicles, fleets operate on a mass scale and consequently produce more emissions. While the trucking industry is a small segment of vehicles on the road, it produces 40% of all road transport emissions. This, coupled with the associated maintenance costs, makes fleets an ideal candidate for EVs.
As proper asset utilisation is imperative to a successful fleet, EVs can help fleet operators cut costs and reduce their carbon footprint; this is because they emit zero emissions and are cheaper to maintain. Climate Group's EV100 program strives to make electric transport the new normal by 2030. Moreover, Climate Group reported that over 400,000 corporate EVs are on the road across the globe. This is a 93% increase from 2022's figures. Companies like Amazon, DHL, IKEA, and Waste Management are electrifying their fleets.
This influx of corporations shifting to EVs can be due to:
- Increased Availability: As battery technology has evolved, more companies are manufacturing electric vehicles. Climate Group reported that there are 300 different battery electric vehicle models available today.
- Conscious Consumerism: As mentioned, conscious consumerism has increased, and sustainability has become a greater priority for many. For this reason, your brand will be more positively received by consumers if it's environmentally friendly.
- Volatile Fuel Prices: As petrol prices reach an all-time high, fleet operators can save a great deal of money by switching to EVs.
- Governmental Initiatives: Governments are seeing the benefits of going electric for our climate and economy. As a result, they are implementing timelines for EV transitions and enacting policies to support them.
A greater push from the government and authorities is a great driving force in EV adoption and cementing it as the new normal in the future. Globally, governments are implementing initiatives that restrict where ICE vehicles can operate or stop new ICE vehicle sales altogether. Additionally, however, governments are also incentivising the adoption of EVs through rebates.
The Benefits of EVs in Your Fleet
We've established that EVs are a great fit for fleets because they're more sustainable and will cut off the reliance on petrol, a costly expense. However, EVs are an excellent solution for your fleet for multiple other reasons, such as:
Enhanced Performance
EVs can reach maximum torque and produce greater acceleration from a full stop. This is particularly useful when carrying a heavy load, such as passengers or freight. Additionally, EVs are quieter than ICE vehicles.
Reduced Maintenance
Electric fleet vehicles don't utilise oil, transmission fluid, or spark plugs, which contributes to the higher cost of ownership with ICE vehicles. As EVs are free of this, they don't require maintenance as frequently.
Improved Charging Infrastructure
Taking the time to fuel your vehicle adds up and can lead to a loss in productivity, especially when your drivers are travelling long distances and need to visit the petrol station more regularly. When operating an EV, drivers can charge their vehicles overnight or during their downtime, maximising efficiency.
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