The Benefits of an Electric Car Fleet for Your Business: Cost, Sustainability & Image

Kamilya - January 13, 2025

The Benefits of an Electric Car Fleet for Your Business: Cost, Sustainability & Image

Businesses that adopt an electric car fleet are not only acting sustainably but also economically. Electric vehicles (EVs) will continue to operate in areas where combustion vehicles are restricted. Even today, investing in EVs pays off due to their low maintenance costs, not to mention the positive corporate image they create. Learn all the essential information about this topic here.

What Is an Electric Car Fleet?

An electric car fleet consists of company vehicles that are either entirely or predominantly electric. This includes both the vehicles (company cars, utility vehicles) and the charging infrastructure required to supply them with electricity on-site. Companies that also invest in solar panels for generating necessary power from solar energy act in an especially cost-efficient and sustainable manner.

Advantages of an Electric Car Fleet

Let’s explore the specific benefits of an electric car fleet in Switzerland. Beyond environmental and image gains, tangible financial advantages make the investment worthwhile.

Environmental Friendliness and Sustainability

The environmental impact of EVs sparks debate. It's true that manufacturing EVs and their batteries generates harmful emissions, and disposing of batteries after their lifecycle poses environmental challenges. However, advancements in battery technology are progressing rapidly. Future batteries may use no lithium, be produced in Europe, and offer much greater ranges. Their disposal, based on conductive carbon minerals, will also become significantly less harmful to the environment.

Another concern is the source of electricity powering EVs. If it comes from high-emission power plants, the environmental benefits diminish. However, photovoltaic (PV) technology is advancing as well, making solar panels cheaper and more efficient, while storage costs are declining. It’s sensible for companies transitioning to electric fleets to also invest in PV systems with storage. This provides cost-effective solar power not only for the EV fleet but also for the company’s operations.

Currently, combustion vehicles produce nearly three times the CO2 emissions over their lifetime (production and operation) compared to a comparable EV using the European electricity mix. When powered by green energy, EVs are more than five times cleaner.

Cost Savings in Operations

Operating an electric fleet is more cost-effective than a combustion fleet, even though EVs remain more expensive to purchase. Here's why:

  • Fuel Savings: Even with charging at expensive public fast-charging stations, fuel costs are lower than for gasoline or diesel. With in-house charging infrastructure and possibly a rooftop PV system, operating costs drop significantly.

  • Maintenance Savings: Electric motors have fewer components subject to wear and tear, require less frequent and less intensive maintenance, and eliminate oil changes.

  • Administrative Savings: Fewer repairs mean less administrative effort. Vehicles spend less time in the garage, reducing the need for replacement cars.

Incentives and Tax Advantages

Switching to an electric fleet often comes with tax benefits. Some Swiss cantons offer reduced or waived vehicle taxes for energy-efficient cars. Municipalities, cities, and energy providers may also provide subsidies. Furthermore, financial support may be available for the required charging infrastructure.

The Swiss Climate Foundation supports small and medium-sized enterprises (SMEs) in implementing climate-friendly projects. Insurance companies and leasing firms may offer discounts on premiums or interest rates for EVs.

Planning and Implementing an Electric Car Fleet

If your business wants to transition to an electric fleet, the fleet manager should evaluate whether EV batteries meet the typical travel needs of employees and whether there are sufficient charging stations for long-distance trips.

In cases where routes can’t be planned precisely, the transition might only involve partial electrification. Decisions must be made about which vehicles can be replaced by EVs.

Selecting the Right Vehicles

Planning includes determining the size of the electric fleet, the number of company cars for employees, and the types of utility vehicles needed. Battery range should also be considered: vehicles for long distances require greater range than those primarily used for short trips.

Vehicle size is another factor. Transporters need adequate cargo space, while compact cars are advantageous for urban parking. This consideration also impacts the layout of company premises and charging station locations.

Developing Charging Infrastructure

For larger premises, investing in in-house charging infrastructure, potentially powered by a PV system, is worthwhile. Ensure sufficient charging stations are available. Pool vehicles, which may not be used daily, require special attention. Long idle times can lead to battery discharge, so maintaining a battery charge of around 60% during downtime is ideal.

Integration into Fleet Management

New EVs must be integrated into the company’s fleet management system, which helps monitor vehicle usage, plan routes, and optimize efficiency.

Challenges in Operating an Electric Car Fleet

Because EVs can't be charged everywhere and charging takes time, daily route planning is crucial. Optimize the use of company charging infrastructure to ensure all necessary vehicles are charged on time.

Range Management and Charging Times

Using load management software ensures optimal usage of charging stations and monitors the charge levels of individual vehicles. Range management features show the potential travel distance based on current battery levels.

Costs of Acquisition and Maintenance

EVs are still more expensive than comparable combustion vehicles, making budget considerations essential. However, include potential subsidies and lower operational costs in calculations. Expect reduced expenses for:

  • Maintenance and repairs

  • Fuel

  • Vehicle taxes and insurance (in some cases)

Tips for a Successful Electric Fleet

To ensure a smooth transition, follow these tips:

  • Research local subsidies for EVs, charging infrastructure, and PV systems.

  • Consider alternatives to purchase or leasing, such as car subscriptions.

  • Provide employees with charging cards for convenient and cost-effective charging on the go.

  • Train employees on charging and range management.

  • Adjust vehicle usage agreements as necessary to specify charging conditions.

Conclusion

Electrifying a company fleet is manageable with good planning. Businesses can replace all vehicles at once or gradually switch to EVs. Regardless, charging infrastructure, fleet management upgrades, legal considerations, and employee training must be addressed.

Flexible solutions like EV subscriptions from CARIFY offer options for varying mobility needs. Whether it’s a compact car, sedan, or utility vehicle, there’s an electric option for every class.

FAQs

What is the best EV right now?

There’s no single answer, as every vehicle class has its leaders. Factors like price-performance ratio, consumption, and range matter. In the mid-range, VW ID.4, KIA EV6, and Hyundai Ioniq 5 are top contenders.

What percentage of cars are electric?

As of August 2024, approximately 21% of all new car registrations in Switzerland were EVs.

Who leads the global EV market?

Chinese manufacturer BYD has surpassed Tesla in EV sales.

Does the EV have a future?

Despite a temporary dip in sales due to global political developments, EVs are essential for sustainable mobility. They reduce operating costs, eliminate CO2 emissions, lower traffic noise, and enhance urban quality of life. Ongoing advancements in range and charging infrastructure ensure a promising future for EVs.

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In partnership with Zurich Insurance Zurich Insurance

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