Why fleets will drive adoption of electric vehicles logistics viewpoints gasbuddy map

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Electrification is one of the most significant trends in transport today. electricity will not generally cause Future demand for electric vehicles (EVs) will, of course, be driven by increased adoption of electric vehicles by individuals and businesses. But the economics of EVs will prove particularly favorable for fleet operations. This is particularly true for full-battery electric vehicles as opposed to plug-in hybrid vehicles. Electric Vehicles Have Operating Cost Advantages

To start, electric powertrains have lower energy costs on a per-mile basis than internal combustion engines. k electric share price forecast They convert energy into motion more efficiently, with today’s full-battery EVs attaining the miles per gallon equivalent (MPGe) of around three times the miles per gallons of traditional internal combustion vehicles. Electricity and gasoline prices vary significantly by region, with some countries imposing heavy taxes on transport fuel. The figure below draws a comparison between both powertrains’ per-mile energy costs using standard efficiencies and energy prices from cities in three major EV markets.

BEVs are expected to last a long time thanks to their simplicity and lower number of moving parts. For this reason, an owner may find that when a battery does eventually wear out, it may make sense to replace it instead of buying a new vehicle. gas constant for air Furthermore, since grid/building operators are making use of Li-ion batteries to improve power quality and better integrate renewables, the residual value of a lower capacity BEV battery is expected to be far larger than the scrap value of an entire ICEV. Fleets Set to Benefit Most

EV operating cost advantages are significant, but come at a higher vehicle purchase price. Considering a company’s opportunity cost of capital, a high acquisition price upfront can actually be quite a bit costlier than it seems. It follows, then, that EV users with high vehicle utilization (such as ride-hailing, last mile delivery, and city bus fleets) offer the strongest business case for going electric. k electric jobs When it comes to delivery vehicles, EV will be more viable in urban areas for last mile deliveries than over the road because the recharging infrastructure is more prevalent in urban areas.

Below is a comparison of how present cost of ownership (with future expenditures discounted by compounded opportunity cost) develops over the life of a high-use battery-operated EV and a high-use internal combustion vehicle. Following procurement, the traditional vehicle’s cost is lower, but as higher operating costs accumulate, the EV becomes more economical. FedEx estimates in North America the operating cost savings are between 70 and 80%. And as you can see in the figure below, the savings are even bigger in areas where fuel is more heavily taxed.

Fleets in urban areas generally run enough miles per day to capitalize on lower battery-operated EV operating costs, but not so many as to require uneconomically large batteries for a day’s activity. gas vs electric range The economics associated with EVs for long haul trucking remains suspect. They also encounter plenty of stop-and-go traffic, making great use of regenerative braking and superior idling efficiency.

As climate change awareness and sensitivity to air pollution grow, cities have begun curtailing, taxing, and even banning emissions-producing vehicles from city centers, as well as charging them ever-higher urban access fees. This is particularly true for carriers. This can make a “clean” EV fleet particularly attractive and bolster a brand’s image as green and socially responsible.