| News | Fleet

The Benefits of Switching Your Commercial Fleet to Electric

From meeting your corporate social responsibility goals to preparing for future phase-outs or cutting running costs, there are many benefits to transitioning your fleet to commercial electric vehicles.

fleet ev charging

The market for electric commercial vehicles and heavy-duty road transport continues to grow. A 2023 report by Charles Rivers Associates found that commercial EV adoption in Europe went from 100,000 to more than one million vehicles between 2016 and 2022. However, the same report estimated that only 1.4% of Europe’s commercial vehicle fleet was electric.

As fuel prices continue to rise and organisations strive to meet sustainability goals, more and more are exploring ways to electrify their fleet. What’s more, there is clearly huge growth potential in the commercial EV sector.

Many companies that operate fleets of commercial vehicles, light commercial vehicles (LCVs), and heavy goods vehicles (HGVs), have begun to see the value of switching from an ICE (Internal Combustion Engine) fleet to an electric one:

  • In 2023, IKEA announced its purchase of 30 electric home delivery vehicles (10 16-tonne trucks and 20 vans) to support the achievement of reaching 100% zero-emission last-mile deliveries by 2025. Per year, fleet is expected to save 1000 tonnes of carbon emissions across just over 10,000 journeys. 
  • Having already started using EVs for its home delivery service and pledged to be fully electrified by 2028, Tesco became the first retailer to adopt a zero-emission electric lorry to make deliveries between its distribution centres and city stores in August 2022. Made by Renault Trucks, the lorry delivers to over 400 stores in Greater London; with a range of up to 130 miles, it can carry the same payload as the diesel truck it replaced. 
  • In Belgium in 2023, Coca-Cola Europacific Partners reduced emissions by 75% by utilising 30 electric trucks provided by Renault Trucks. Overall, the investment will cut CO2 emissions by 30% across the entire value chain by 2030 enabling them to become climate-neutral by 2040.

This blog explores some of the key factors that are convincing fleet managers to electrify their commercial and heavy goods vehicles, as well as some of the benefits they can expect. These include:

  • How electrification can help companies work towards environmental and sustainability commitments  
  • The inevitability of electrification due to government mandates 
  • The financial benefits of making the switch
  • Meeting consumer expectations

The Positive Environmental Impacts of an Electric Fleet

In 2022, 89% of goods in the UK were moved directly by road. In the same year, HGVs covered 19.5 billion kilometres, many of which were diesel-fueled.

In the UK, they use around six million tonnes of diesel annually. The HGV sector accounts for around 19% of UK transport emissions despite making up only 1% of the vehicles on the road. Medium- and heavy-duty vehicles are predicted to account for over 11% of total global CO2 emissions by 2050 if steps to decarbonise are not followed.

EVs are known to have a lower impact on the planet regarding emissions and pollution. Switching to an electric commercial or heavy goods vehicle can have a hugely positive influence on the environment. For example, switching to all-electric and hydrogen truck fleets would cut the UK’s annual CO2 emissions by 21.1m tonnes. Not only do all organisations have a duty to adopt sustainable business practices, but the upcoming ban on the sale of petrol and diesel vehicles (more below) and targets to reduce emissions could also force their hand.

Meeting Consumer Environmental Concerns

Customers and consumers are more environmentally aware than ever before. An EU survey conducted in September 2023 identified that 73% of people say a product (or service)’s environmental impact is ‘very’ or ‘rather’ important to them. In the same survey, 60% of respondents said they have bought products specifically because of their lower environmental impact.

Clearly, people are more likely to support businesses that show a commitment to lowering their carbon footprint. In a competitive business environment, this could be the difference between success and failure.

Government Mandates Mean the Electric Transition is Inevitable

In 2021, the government pledged that all new HGVs in the UK will be zero-emission by 2040. The transition begins with phasing out new, non-zero emission HGVs weighing 26 tonnes and under by 2035. By 2040, this applies to all HGVs sold in the UK.

In 2024, the new Labour government reiterated their commitment to this, with the ban on private ICE vehicles coming into force from 2030.

The earlier you begin to think about the transition in all its complexity, the easier it will be, because there is an additional factor to consider on top of the vehicles themselves. For one, evaluating your requirements and planning and installing the necessary infrastructure will take time. Secondly, utilising EVs may require additional operation and maintenance training for staff and/or customers, and reducing the possibility of downtime is essential.

ULEZ and other clean air zones

While London’s ULEZ is very well-known, cities around the country have either implemented or are planning low-emission zones of their own. Typically, vehicles above a certain threshold of greenhouse gas emissions are restricted and/or charged to enter them. Some of these cities include Birmingham, Bristol, Oxford and more.

By switching commercial and heavy goods vehicles to electric, fleet managers can reduce operational costs by avoiding charges in these low-emission vehicle zones. These savings exist alongside the reduction in fuel and running costs associated with ICE vehicles.

There are countless financial and environmental benefits to adopting an electric fleet. Understanding your requirements and implementing the change can be daunting. That’s where Mer’s design consultancy services can ensure you get what you need and see a return on your investment.

 

 

Recent News