Corporate fleets: The slow build as more company cars go electric

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The number of EV models on offer in Australia has expanded to beyond 100, and more businesses are examining whether to shift their fleets from petrol or diesel.

Already a subscriber?Government subsidies and incentives resulted in EV ownership rates per head of population advancing faster in Europe. But EV sales are building in Australia and when hybrids or plug-in hybrids are included, now make up around 18 per cent of the total new vehicle market.

Companies need to be mindful of the ESG risks in not moving swiftly, while cost savings at a time when pressures are rising are also an important consideration.“For companies where fleets are a core part of operations, transitioning from conventional internal combustion engine vehicles to electric vehicles will be equally essential to reduce their potential ESG risks and costs,” it concludes.

In March, the percentage of novated leasing customers choosing an EV reached a record 63 per cent of all novated leases across any type of vehicle, be it petrol, diesel, hybrid or full battery electric.Dominic LorrimerChief executive Damien Berrell says the next major growth area for FleetPartners would come from companies moving to convert their fleets to EVs.

Full-battery EVs made up 6.4 per cent of the total new vehicle market, compared with 7.9 per cent in April 2023. “Investing in and developing the necessary charging infrastructure – both private and public – will be key to meet companies’ urban and regional delivery needs.”There are short-term barriers, one of the main ones the cost of EVs. But government incentives are increasing, and more financing solutions are being offered by lenders.

“Electrifying fleets offers a unique opportunity to make substantial yet rapid progress towards decarbonisation by transitioning a large number of vehicles at the same time.” “Having that strong target has accelerated our strategy to electrify our fleets and our delivery services, as having our parcels delivered in zero-emissions vehicles is one of the key areas that can enable us to reach that goal.”

 

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