Sustainability LIVE: Net Zero – Scaling EVs in Fleets
At Sustainability LIVE: Net Zero, a panel of mobility and automotive leaders came together to discuss the path forward for electric vehicle (EV) fleets and mobility.
Featuring Peter MacDonald Head of Mobility, Ohme; Mike Palmer, Head of Strategy & Insights at Auto Trader UK and Stefan Croyle, Vice President of Innovation (automotive Electronics, E-Mobility and Components) at Henkel, the discussion revealed the complex landscape of electrification in fleets, from corporate and government targets to the logistical and financial barriers slowing down adoption.
The challenges: Infrastructure and incentives
The session opens with a focus on the current challenges in scaling EV fleets.
Peter notes that while the UK has made significant progress in adopting electric passenger cars for corporate fleets, a major issue remains: the poor uptake of EVs in the retail market and the growing difficulty of reselling electric vehicles.
“The UK has strong incentives for fleet EV adoption, particularly for company cars, but the retail market is struggling to catch up,” Peter says.
One of the key factors affecting fleet EV adoption is the cost of depreciation, which is influenced by the weak demand for used electric cars.
This has led to higher leasing costs, which dissuades companies from further investing in electric fleets.
“Depreciation is a major concern because if there's little demand for these vehicles when they’re returned, the value drops significantly, making the lease costs go up,” he explains.
Mike adds that the situation is even more complex for electric vans, which lag behind electric cars in terms of adoption.
He points out that van fleet managers face additional hurdles such as higher asset costs, limited incentives and the operational disruption caused by charging time.
“For van fleet managers, charging adds another problem — they have to consider not only the cost but also the operational downtime, which is critical for businesses like delivery services,” he says.
The roadblocks: Charging infrastructure and user acceptance
One of the most significant barriers to EV adoption is the charging infrastructure. Both Peter and Mike highlight how public charging remains more expensive than home charging, with complex access and reliability issues. For fleets, where many drivers may not have access to home charging, this creates operational challenges.
“Drivers living in flats or terraced houses may not have access to home charging and public charging is not only more expensive but also more time-consuming,” Mike says.
The fleet sector is also contending with the additional challenge of driver acceptance, especially in the rental and logistics industries.
Rental companies, for instance, have struggled to get consumers to choose electric cars due to the perceived difficulties of charging and range anxiety.
“The rental desk isn’t the right place to explain electric vehicle use to someone who’s driven petrol cars all their life,” Mike explains.
The challenge is even more acute for van fleets, where businesses are reluctant to add electric vehicles to their operations due to concerns over downtime and charging logistics.
Stefan adds a technical perspective, discussing how battery technology can support the transition to EVs.
"Battery technology is advancing at unprecedented speeds,” he says, emphasising that future batteries will address concerns like range and charging time.
However, he cautions that Europe still lags in battery production and innovation compared to Asia, where companies like CATL and LG Energy Solutions are leading the field.
The long-term outlook: Collaboration and education
While the panel acknowledges the challenges, there is optimism about the long-term adoption of electric vehicles in fleets.
Peter and Mike both stress the importance of finding the right use cases to demonstrate the value of EVs to businesses.
“We need to start with the low-hanging fruit — drivers who can charge at home and have predictable, short-range routes,” Peter says, adding that getting these initial successes will help build confidence in the wider fleet market.
Education is also crucial in overcoming resistance to EVs.
Peter suggests that successful fleets often start small, with a few enthusiastic drivers who advocate for electric vehicles within their organisation.
This approach allows companies to test the waters and identify where EVs make the most sense operationally.
Stefan emphasises that battery swapping technology, like that being used in Shanghai, could revolutionise the industry by reducing downtime for charging.
“In Shanghai, NIO has implemented battery swapping stations, allowing drivers to swap out their battery in just two minutes,” he explains.
This kind of innovation could solve some of the major operational concerns for fleet managers, particularly in high-traffic urban areas.
The way forward: Government policy and future technology
Looking ahead, the panel discusses the need for stronger government policies and incentives to encourage the adoption of electric vehicles.
Mike points out that local government initiatives, like London’s Ultra Low Emission Zone (ULEZ), have driven the use of electric vans in cities, but similar policies are needed nationwide to push adoption further.
“If policies like ULEZ were expanded across the UK, we would see a much greater uptake of electric vans, especially in urban areas,” Mike says.
Stefan added that battery technology will continue to improve, making electric vehicles more appealing.
Advances like solid-state batteries will enhance range, safety and charging times, addressing many of the concerns currently holding back adoption.
“The future of battery technology is promising and once these innovations reach the market, they will make electric vehicles more viable for both fleets and individual drivers,” he says.
At Sustainability LIVE: Net Zero, the session on EV fleets and mobility provided a comprehensive look at the current state of the industry and the road ahead.
While challenges around cost, infrastructure and user acceptance remain, the panellists were hopeful that with the right combination of education, policy and technological innovation, the widespread adoption of electric vehicles in fleets is within reach.
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