By RAM Tracking on 21 Dec 2022
The vehicle landscape is evolving rapidly, with technology offering new features, making commuting on the road more comfortable and safer. As per Statista, passenger vehicles hold 70% of motor vehicle sales. But an increasing number of vehicles on the road also contributes to the rising fuel combustion, negatively impacting the environment. Hence, many countries have initiated certain regulations to curb harmful emissions.
The UK was the first country to pass laws to achieve a target of net zero emissions by 2050, and the country has already achieved a 42% reduction in emissions, as per government reports. This shift towards sustainability has triggered the adoption of Electric Vehicles (EVs), and many car owners are willing to try EVs.
With new policies around sustainability, fleet businesses are also investing in EVs as they offer many benefits compared to traditional fuel-based vehicles. Yet, many fleet companies are apprehensive about shifting to electric fleet vehicles since they are short of range and storage capacity.
Fleet managers should compare their options and then think if they should make their fleet electric. To help you weigh options, here's a comparison of petrol, diesel, and electric vehicles.
Pros of Petrol Vehicles
- There are plenty of petrol vehicle options available in the market at affordable prices.
- Petrol cars are cheaper than diesel or electric vehicles.
- These vehicles offer a better driving experience, producing less sound and providing better acceleration.
- Fleet managers find repairing a petrol vehicle easy as service centres can be easily located.
- With fuel stations available in every corner of any city, refuelling is never a problem.
Cons of Petrol Vehicles
- The rising prices of petrol make running petrol vehicles costly.
- These vehicles release high volumes of CO2, polluting the environment.
- Petrol vehicles need frequent maintenance, increasing costs.
Pros of Diesel Vehicles
- They offer better mileage than petrol-powered vehicles, implying improved fuel economy.
- Diesel vehicles hardly need engine tune-ups as they don't have any distributors or spark plugs.
- Diesel engines are more robust than petrol ones and can endure the difficulties of higher compression.
- They tend to last longer than petrol vehicles.
- Diesel vehicles tend to depreciate at a slower rate than their petrol counter part
Cons of Diesel Vehicles
- Previously, there was a considerable difference in the prices of petrol and diesel but today diesel costs just as much as petrol.
- Diesel vehicles are more expensive than petrol ones.
- If we talk about diesel v electric cars, diesel engines require regular maintenance and can increase your insurance costs.
Why Shift to Electric Vehicles?
An electric car fleet runs on electricity, which is stored in rechargeable batteries. EVs are increasingly becoming popular as they are environmentally friendly. Besides this, there are many other advantages of electric vehicles.
- Since electric vehicles run on electric power, they provide excellent fuel economy. It helps fleet managers cut down on fuel costs significantly.
- The maintenance costs are also low as they don't need oil changes or fuel filters.
- You can charge EV fleets when you want, and off-season rates result in meagre charging costs. All of this can help lower operational costs.
- An electric fleet van delivers the same vehicle performance as their fuel-driven counterparts, and technology like AI and IoT can further improve the performance.
- You can charge the vehicle at your fleet unit or public charging stations overnight or when idle.
- EV fleet vehicles are gaining popularity due to the environmental benefits it offers. These vehicles emit comparatively fewer emissions than fuel-powered ones, and they also work silently – reducing both air and noise pollution and contributing towards better health.
- As per the Department of Energy, many cities offer federal tax credits of up to $7,500 when you buy electric vehicles.
- Eventually, the total cost of ownership of EVs will be inexpensive.
However, more battery development is expected as the current technology has limitations. One of the reasons fleet companies are worried about transitioning the fleet to electric is the access to too few public charging stations. According to Statista, around 28,200 electric vehicle charging points were recorded all over the country.
The government aims to increase the number of electric charging stations to 300,000 by 2030. The current infrastructure to support electric vehicles on the road is poor compared to the increasing EV sales. It will also ban the sale of petrol and diesel vehicles from 2030.
The Future is Electric
Consumer behaviour is also changing as they realise that climate change and global warming severely affect health and the environment. Consumers are showing positive interest in EVs; hence, sales are increasing worldwide. Additionally, many cities are trying to taper private vehicle usage and reduce congestion by encouraging ride-pool services.
- Electric vehicles are promising for commercial purposes as they help reduce operating costs, increase efficiency, and ensure sustainability.
- Fleet managers can benefit more from electric vehicles by using fleet tracking and management software.
- Our fleet tracking software can help with route planning, give insights on nearby charging stations and location details, provide vehicle health data like battery status and temperature, and much more.
Electric vehicles have already gained a lot of importance, and the automobile industry is transforming at an unprecedented pace. This can introduce changes in the entire automotive supply chain management and foster more opportunities in the vehicle segment.