New research by Cox Automotive shows that fleet owners operating electric vehicles (EVs) and traditional, fuel-burning counterparts have higher levels of satisfaction with their EVs.
The report, Future of Fleets: Path to EV Adoption, suggests that EVs bring higher scores among fleet owners in key metrics such as “overall satisfaction,” “cost of ownership,” and “vehicle usage and capabilities” when compared to vehicles powered by internal-combustion engines (ICE).
This report, released in conjunction with Cox Automotive’s 2024 Path to EV Adoption Study, provides an examination of the shift toward EVs among fleet owners. Conducted in Q1 2024, the survey collected data from fleet decision-makers in various regions and across differing fleet sizes. Data shows that 14% of fleets presently operate EVs, with a significant trend toward EV adoption expected in the next five years.
According to the new study, fleet operators that currently employ EVs have a 90% likelihood of acquiring additional EVs in the next acquisition cycle. 87% of the total sample of fleets owners, including those with and without EVs, expect EVs to be added to their fleets in the next five years.
Fleet owners forecast that the EV share of the average fleet in five years would be 43%. Among operators currently managing EVs, the projected share of EVs was even higher, at 58%, suggesting those with the most experience with EVs expect more rapid growth. The research indicates that awareness of fleet EV incentives, which can significantly lower acquisition costs, is high among operators and viewed more favourably compared to the retail market.
However, just as in the retail business, barriers to greater EV adoption in the fleet business persist. Acquisition cost is a primary concern among fleet buyers, particularly for those considering EVs, while existing EV owners express concern about the lack of charging stations and supporting infrastructure. High prices, low mileage range, and battery replacement costs were other reported barriers to further adoption.
“The electric vehicle story is much larger than just the retail story,” said Zo Rahim, senior manager of Research and Market Intelligence at Cox Automotive. “In many ways, 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. The fleet business is significant in the US market, and we expect the EV share of the fleet market to expand in the coming years.”
EV repair and maintenance
When it comes to maintenance and repairs, fleet businesses value uptime and low cost of ownership. Fleet operators that employ both EVs and ICE vehicles are found to be more satisfied with their EV vehicles. The survey results indicate EVs have a slightly higher frequency of service compared to ICE vehicles — but nearly half of EV fleet owners (48%) are more satisfied with their EV products.
Comparatively, 27% of owners are more satisfied with their ICE products when it comes to service and 24% see no difference in satisfaction level between ICE and EV products.
Wear-and-tear services, such as tires and brakes, are the most regularly serviced items among EV fleet owners. Emergency services are relatively low overall across all products but higher among EVs compared to gasoline and diesel vehicles.
Overall satisfaction
Among fleet operators who run both powertrains, EVs have the highest “overall satisfaction” and “total costs of ownership” satisfaction scores. When asked about the “ability to complete the business purpose” and “vehicle usage and capability,” EV satisfaction scores were higher than ICE scores, although approximately four in 10 respondents judged them to be about the same.
“It is a good sign that overall satisfaction with EV in the fleet business is relatively high,” added Rahim. “There are certainly challenges in shifting a business away from traditional ICE powertrains, but if owners and operators are generally satisfied with the outcome and see tangible savings, EV adoption could certainly accelerate through the end of the decade.”
Five key takeaways:
- EVs are coming: While only 14% of fleets operate EVs today, most fleets expect to own an EV in the next five years. The greatest adoption will come from fleets that already own and operate EVs.
- Costs challenges: Current factors around cost are reasons many fleets are not considering an EV. However, fleet EV incentive awareness is high and viewed favorably compared to the retail market.
- Charging concerns: Faster charge times and longer driving range is needed to improve EV consideration. Charging station availability is a key concern for many fleets.
- Service and maintenance opportunities: EVs see maintenance services, including emergency service, performed slightly more often than ICE vehicles.
- Satisfaction with EVs: Generally speaking, fleet owners are more satisfied with EVs, including in total cost of ownership and capabilities.
Filed Under: Technology News