How to simplify and derisk fleet electrification in the longer term
With regulation pushing fleet electrification high up the priority list of international Fleet managers, it is time to address the challenges. Not individually, but holistically, to ensure a successful transition while keeping TCO at bay.
EV sales are soaring across Europe. According to the European Automobile Manufacturers Association (ACEA), battery-electric car registrations in the European Union, EFTA (Norway, Switzerland, Iceland) and the UK increased 59.1% year-over-year to over 146,000 units, taking a 14.7% share of the market in the first quarter of 2021.
That should come as no surprise as regional and local authorities and municipalities provide incentives for private consumers and corporates that are willing to flip the switch today. France and Germany offer compelling premiums for BEVs and PHEVs, which can result in cost parity with ICE vehicles. In Norway, BEVs are even cheaper to own and run than diesel or petrol vehicles.
Apart from incentives, there is of course the increasing pressure from large cities to go zero-emission. Amsterdam and Paris have already announced to close their gates for ICE vehicles from 2030. The UK government will no longer allow new ICE vehicle sales from 2030 onward. Time to achieve compliance is short and rather than taking a contemplative stance, early adoption and strategic planning is advised.
The risk of trying to control the electrification process
Electrification is embraced by most companies, but there are several challenges facing all fleet operators across Europe, such as access to and the cost of charging infrastructure at the office, depot and/or at employee homes.
Organisations are at risk of trying to be in control of the electrification process, for instance by procuring charge points and grid connections separately across a particular country and adopting various EV types. However, this results in a multitude of contracts and adds to the operational complexity, while possibly significantly increasing the long-term running costs.
Knowing when and how to electrify your fleet without decreasing efficiency or increasing costs requires expertise in new technologies, their operational implications and associated costs. Hitachi is well positioned to help companies to look at things in a holistic manner and see the opportunities, such as revenue creation from battery storage.
Navigate the challenges holistically
Hitachi’s Intelligent Fleet Decarbonisation service is designed to de-risk and simplify the fleet electrification process by working with you to create a Total Cost of Ownership (TCO) model for the entire electrification project, encompassing all the components. Hitachi also provides a digital platform that enables effective management of each depot’s mobile and fixed assets continually optimising costs and leveraging assets such as solar and battery energy storage to generate benefits that reduce the cost of ownership.
“This TCO model uses existing fleet information to prioritise which vehicles to replace first, suggest appropriate replacement electric models and advise on the required charging infrastructure. It also generates a business case, calculating when a return on investment can be realised, which will help gain senior management buy-in to your electrification plans,” explains Mike Nugent, Head of Fleet Strategy for Hitachi's Social Innovation Business.
As a Principal Partner of COP26, Hitachi is making it a priority to help customers make the transition to electric vehicles. In this role, Hitachi will champion decarbonisation in the mobility sector.
Hitachi’s Intelligent Fleet Decarbonisation offer (IFD) is a holistic end to end service designed to guide you through an electrification optimisation programme, delivering true net-zero operation and realisable financial savings. The entire transition and on-going support service are financed by Hitachi and delivered as a price per mile or price per month in a true risk-sharing decarbonisation partnership over 8 or 15 years.
To find out more about how Hitachi’s Intelligent Fleet Decarbonisation can help your fleet operation make a successful transition to net zero operations, please visit the Hitachi website.
