Build a financial case
Businesses often express concerns about the costs associated with transitioning their fleets to EVs, however the financial landscape for EV adoption is becoming increasingly favourable.
This change is driven by the availability of incentives and more affordable EV models. There was a time when the initial purchase price of EVs was significantly higher than their internal combustion engine (ICE) counterparts, but with the introduction of more than 27 brands to choose from at various price points, the upfront costs for EVs are now starting to now be comparable to ICE vehicles. What hasn’t changed though is the reduced running costs, which strengthens the case for transitioning to an electric fleet.
A key policy designed to help facilitate this shift is the Electric Car Discount Bill (2022), which eliminates the fringe benefits tax (FBT) for eligible EVs within fleets. Removing FBT represents potentially considerable cost savings for eligible EV owners, particularly for take-home vehicles, and makes the economic argument for integrating EVs into fleets stronger.
The importance of starting today
With the financial barriers to EV adoption being mitigated, fleet managers can now focus on planning and executing their fleets’ transition to EVs. Starting this process sooner rather than later is crucial when aiming to stay ahead in the move towards electrification. Starting now will ensure fleets are well-prepared for the inevitable shift towards an EV future.
While it may not be feasible for some businesses to transition their entire fleet at once, it’s worthwhile to get started on the journey – even if it’s just one EV at a time. An EV pilot program enables businesses to get familiar with the EV landscape and figure out what vehicles suit their needs.
The more proactive businesses are today, the better prepared they will be for legislative changes such as the proposed New Vehicle Efficiency Standard (NVES), that could impact the cost to run or reduce the future value of an ICE fleet.
Reducing fleet carbon emissions
Transport is currently Australia’s third largest source of emissions, with 60 per cent of Australia’s CO2 emissions generated through ICE passenger vehicles and light trucks. Companies making the shift to EVs demonstrate leadership and will be contributing to a cleaner future.
What steps do you need to take to get started?
1. Evaluate your current fleet
Identifying EV opportunities begins with a deep understanding of fleet operational requirements and needs. Conducting a review can generate insights to inform an EV transition strategy, such as:
- How employees adapt to the new technology
- Bespoke charging strategies to meet operational requirements
- Charging behaviours — how, when and where drivers will charge their vehicles
- Ongoing power and maintenance costs
- Which EV models best suit your business needs
2. Choose the right electric vehicle for your fleet
EVs represent a rapidly expanding market and are a platform to showcase new technology. With a variety of models available, businesses have greater flexibility to test and swap vehicles, making it easier to find the right fit.
3. Determine the best charging solution
There are several charging solutions available for EVs – including standard wall socket, AC single phase and 3 phase smart chargers and dedicated DC fast EV charging stations, available for both public and private charging. The right solution would be dependent on the operational requirements of the vehicle and business needs.
4. Bring stakeholders on the journey
Adapting to EVs is a journey for all involved and requires a strategic approach. Hosting educational sessions and implementing processes and systems for all stakeholders will help them successfully transition.
5. Consider a fleet management program
Origin 360 EV Fleet offers end-to-end support to electrify your fleet from developing a strategic plan, to identifying the right EVs and charging infrastructure, to setting up the first trial. Businesses looking to experience a range of EVs can register for a future Drive Day or webinar, or ask us about the Origin 360 EV Flex Plan – our all-inclusive monthly EV subscription plan for businesses.
Origin 360 EV is dedicated to helping Australians make the switch to EVs. We offer a range of products and services, from EV ready buildings, home charging solutions to business leasing, subscriptions and car sharing.
Want to learn more?
Download our guide ‘A roadmap to electrifying your fleet‘ today.
