Electrification for Fleet Owners Wayne Duvenage
Electrification for Fleet OwnersFLEETS TAKE ON VARIABLE NATURE OFMANAGEMENTMultiple Driver vs Single DriverResponsibility for maintenance & operating costsResponsibility for Vehicle Disposal & Residual ValuesBuying Decisions – linked to above
Electrification for Fleet OwnersBENEFITS of EVElectric vehicles most efficient for mobilityEV direct running cost at 75 to 80% less than petrolMaintenance expenses – additional savings benefitCaution must be exercised to understand requirementsbefore switching to EV – Not one-size-fits-all.
Electrification for Fleet OwnersCHALLENGES of EV IN FLEETSLogistics – Refueling Vehicle Storage Facilities & InfrastructureRange Limitation National Refuel Network – InfrastructureCash Flow – Significantly more pressure from EV
Electrification for Fleet OwnersRENTAL CARS Logistics – Refueling & Yard layout Range Limitation Recharging Time – affects turnaround Hybrids more practical Dual Fleet for specific requirementsCHAUFFEUR DRIVE Training Control – One Driver EV – Cost Saving benefit wins
Electrification for Fleet OwnersCORPORATE FLEETS Range Limitation – Sales Reps problematic Hybrids more practical Short Trip Pool Fleet – EV ideal Management Cars – EV IdealCOSTS over “Whole Life Period” 20 – 30% savings from EV But EV while 30% more expensive – Upfront Capex
FLEET VEHILCE COST COMPARISON ICE EV % DiffVEHICLE PRICE (Midrange) 250,000 330,000 -32%Depreciation / Annum 13% 14%Annual Holding Cost 32,500 46,200Fleet Life (Yrs) 5 5Total Depr for Period 162,500 231,000 -42%Residual Value 87,500 99,000OPERATING EXPENSESServicing (excl TYRES) / Annum 2,000 200Petrol (3000 km/m @ 9l/100km@R12/l) 2,500 2,700 488 82%EV = R1.30 / Kw at 15 km / 100kmENERGY COST / Annum 32,400 5,850 82%OPERATING & ENERGY COSTS / 5 Yrs 164,000 29,450 82%TOTAL VEHICLE & OPERATING COSTS / 5Yrs 326,500 260,450 20%Notes: Depr. EV, with fast changing technology, battery repl? Uncertainty of RV requires Gove Tax Breaks
Pollution imperative25 – 30% SA Carbon emissions by Vehicles – 90% roadFleets make up to 40 % of vehicles on the road (incl LDVs)The EV on fleets has a Multiplier effect: Experience for non EV owners Faster turnaround / saleSmooths the flow of electricity consumption throughout theday / night.
Governments RoleBe more encouraging – re Carbon Emissions – IncentivesSA – No strong incentives for EV yet.UK – 100% rebate on Company Car TaxFree London City Congestion Charge. Govt urged toincentivise for Carbon and Pollution reductionPlug in Places (Refuel points) grid needs to be establishedMoving to this space – definite future of motoring for fleets.Corporate reputation
SummaryNo one-size-fits-all. Must understand needsClean energy source – Charging from SolarEV will be the chosen & efficient mode in futureOperation costs of fleets – significant savingsLogistical challenges - high.Petroleum becoming more efficient – 50% over 15 yearsEfficiency in three areas sought: Financial, Operational &Environmental