Fleet Owners More Satisfied With Electric Vehicles Than ICE Equivalents, Despite Challenges
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While demand for EVs is weaker than expected among ordinary consumers, fleet owners are showing a significant preference for electric vehicles over their ICE counterparts, despite the EVs needing somewhat more frequent maintenance and repair.
Just 14 percent of American fleets make use of electric vehicles as of summer 2024 according to the report by Cox Automotive, but that number is expected to grow sharply in the near future.
The research shows that operators who have electric vehicles in their fleet alongside internal combustion-powered vehicles prefer the EVs. Of those included in the study, 41 percent of fleet owners preferred their EVs, while 24 percent said they were more satisfied with ICE vehicles and 35 percent rated ICE and electric about the same.
For total cost of ownership, 35 percent sided with EVs and 29 percent with ICE, while 33 percent liked the electric vehicles’ capabilities more versus 24 percent who chose ICE as the better option. As for maintenance, EVs needed more – 63 percent in the past 12 months versus 57 percent for gasoline and 55 percent for diesel. Yet fleet operators still preferred the EVs by a whopping 48 percent versus 27 percent more satisfied with ICE maintenance.
Fleet owners are more satisfied both overall and in detail with their electric vehicles. On the other hand, concerns about high EV prices – which are mitigated by electric fleet vehicle incentives – range limitations and charger availability are still generating some reluctance among fleet operators to commit to electrification.
Typical fleet owners believe 43 percent of a typical fleet will be electrified in half a decade’s time, while those already operating partially electrified fleets think the share will be 58 percent. A Cox analyst, Zo Rahim, remarked that “electric vehicles can be an ideal solution for many fleet operations, which often have set routes of known distances, vehicles that routinely overnight in the same location, and operations that prioritize the cost of ownership.”
While 46 percent of regular U.S. drivers who own EVs want to go back to ICE, the attitude of fleet operators is the polar opposite. Of those who already have EVs, 90 percent expect to buy more during their next acquisition cycle, while 87 percent of those without expect to have a partially electrified fleet within 5 years.
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Does that include Hertz?
No, Hurts!
The key words are fleet (meaning multiple vehicles, regularly scheduled maintenance, and maintenance requirements with predictable daily routes), overnight charging at limited pre-established locations and incentives (meaning government funding). Costs thereof are understandable and quantifiable to those in charge of counting the beans. Not surprising.
Makes no sense. I sold leasing services to fleet operators for several years. In every case the KPI’s the fleet and its management were driven by were:
Acquisition cost
Operating costs (Gas, Oil, Tune-ups, etc.)
Repairs; both cost and downtime
Resale or residual value
I’d guess in today’s world maybe there’s a KPI for social awareness or similar but otherwise I cannot see how EV’s, with higher acquisition cost, poor resale value, and repair cost and time would be preferable. Certainly the operating costs would favor the EV particularly if they return to a central station for recharging every night. I really don’t care if a fleet runs ICE or EV vehicles, as long as it doesn’t cost me more to get a package delivered or to keep my utilities on.
Dear wjtinfwb: I concur wholeheartedly with one caveat. Having spent 41 years combined in engineering, sales and/or service at automotive major drivetrain suppliers, one of those major drivetrain suppliers developed a product solely because of the federal EV “incentive” funds available. THAT threw the whole cost/benefit evaluation out-of-whack and financially justified the investment (but you better believe there were several “come to Jesus” meetings with our OEM customers before the product development program was started). It was still risky due to politics and had to ensure an attractive short-term payoff.
When are EV vehicles going to pay road taxes like ICE vehicles? Nobody talks about that. They need to pay a use tax. Then maybe they won’t look so good or cheap to own.
I pay $200 extra per year to register my Bolt EUV in Ohio. Many other states also charge a fee for electric cars.
Everybody talks about that! But not only EVs but Hybrids and fuel efficient ICE needs to pay use taxes. Fuel taxes do not cover road upkeep by themselves. Toll roads do make everyone using them pay. Maybe base tax on annual odometer readings at plate renewal time?
Specifically, what are the EV maintenance costs that are higher than that of a comparable ice vehicle?
Well golly gee-whiz, who’d-a-thunk-it ? After all, those “fleet owners” gotta’ figure out some way to justify their investment and increased cost of Purchase, incredibly low re-sale value, along with the necessity of installing all those charging stations ! Wonder how those “fleet vehicles” will perform in cold climates when the old Thermometer bottoms out ? Also curious how they will then justify enormous battery replacement costs when the time comes due ?