Switching to EV fleets could slash costs: report

Sixty percent of light-duty European fleet vehicles could be switched to fully electric vehicles (EVs) at a lower total cost of ownership (TCO).

That’s according to a new report from online fleet management and GPS provider, Geotab, published to coincide with World EV Day on 9 September.

Switching to electric fleets could save a total of nearly £222 million over a seven-year service life, it claims, though it is not known if the study considers the recent surge in electricity prices.

The company also finds that the UK market is lagging behind the rest of Europe in EVs’ “economic suitability”.

Geotab analysed the anonymised driving patterns of 46,000 connected internal combustion engine (ICE) vehicles from 17 countries, including France, Germany, Spain, Italy, and the UK.

It then reviewed the operational costs and environmental impact of traditional petrol and diesel light commercial vehicles and compared them with battery-powered electric counterparts.

By using real-world electric vehicle performance data, Geotab has provided “compelling evidence” on the return on investment (ROI) and the positive sustainability impact of an immediate switch to EVs.

“According to the data, fleet managers can expect to see average savings of £8,076.07 per vehicle over a seven-year period, even without factoring in savings from government incentives, like initial purchase price discounts.

“Looking at the sustainability impact of going electric, the saving per vehicle equates to cutting an average of more than five tonnes of tailpipe carbon emissions per vehicle. In aggregate across all analysed vehicles, that is the equivalent to carbon sequestered by 2.6 million tree seedlings grown for 10 years.”

The report adds that government incentives could be vital in enabling companies to make a cost-effective switch to EV technology.

The UK scrapped its plug-in car grant (PICG) earlier this year. However, the report acknowledges that UK has the highest share of EVs with a high range capability. Despite this, UK vehicles have the lowest economic viability.