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Corporate Fleets Rely Heavily on Electric Drives, With Potential Implications - Electric Drives Offer a Game-Changing Advantage for Multiple Fleets, With Implications to Consider
The shift from gasoline to electric is gaining traction among companies in regions like the Westerwald and South West Palatinate. corporations are leaning towards electric vehicles (EVs) in their fleets and offering internal incentives. This move might indirectly spur a rise in EVs in residential areas, according to the Energy Agency of Rhineland-Palatinate. Is this the tipping point for the switch?
Pharmaceutical giant Boehringer Ingelheim, for instance, aims to have three-quarters of its vehicles electric by 2030. The conversion process is gradual, with electric vehicles being the go-to choice for new orders. Currently, more than 100 charging points for EVs and hybrids are available at their German sites.
Subsidies depend on the powertrain
At BASF, Europe's largest chemical company, 55% of their approximately 1,600 company cars are electric or hybrid. There's a growing preference among employees towards electric or hybrid vehicles, according to the company. It's forecasted that their share will keep rising.
A charging infrastructure, in partnership with the Palatinate Works, has been established within and around Ludwigshafen's site. Employees and third-party companies can utilize it. Financial incentives also come into play for using EVs. The incentives in the company car policy depend on the type of powertrain.
EVs can lead to substantial savings
Dennis Schulmeyer, the founder, and CEO of Lade, a Mainz-based company offering comprehensive solutions for fleets including energy management, sees a compelling reason for companies to go electric and develop their infrastructure, including power generation. Lade estimates the potential savings in Rhineland-Palatinate to be up to 249 million euros. Lade assumes there are around 5.7 million vehicles with commercial registration in Germany. They estimate each vehicle averages 22,000 kilometers annually, consuming 20 kilowatt hours per 100 kilometers for an EV and 7 liters for a diesel vehicle.
Lade's calculations use costs of 30 cents net per kilowatt hour for grid electricity, 6 cents for self-generated solar electricity, and 68 cents net for charging at public charging stations—compared to a cost of 1.38 euros per liter of diesel.
AI offers optimization opportunities
AI can help stragegy development, such as using cost-effective charging times and adapting the charging process to individual vehicle usage patterns.
Not everybody finds the switch equally appealing
While complete solutions providers are in high demand, they may not be as appealing for companies with small fleets, like insurer Debeka.
Cost savings deemed less relevant, the insurer stated when contacted in Koblenz. By the end of 2024, Debeka had a modest fleet consisting of seven conventional passenger cars, three plug-in hybrid passenger cars, six conventional commercial vehicles, and three electric commercial vehicles.
Second-hand market emerging
However, fleet electrification is driving the growth of the electric vehicle industry, asserts Peter Götting, project manager of the Alternative Drive pilot station at the Energy Agency Rhineland-Palatinate. Companies switch vehicles more frequently, and leased ones usually dominate.
German manufacturers are making significant strides in the EV segment. This is important for companies as quick service for fleet vehicles is crucial, meaning local dealerships are vital. Götting shares Lade's sentiment: If companies can utilize their own solar power for charging vehicles, it's unbeatable in terms of cost.
Impact on the secondary market
The development in companies has a delayed effect on the overall market, explains Götting. It leads to the availability of more used EVs, creating an attractive secondary market for private households compared to the high price of new EVs.
The decision to choose an EV is now influenced by larger ranges, expanded charging infrastructure, and shorter charging times. The political stance on EV subsidies has slowed the progress. The Energy Agency refers to numbers from the Federal Motor Transport Authority. In 2024, electric passenger cars accounted for 21% of all new registrations in Rhineland-Palatinate, with plug-in hybrids accounting for 6%; a combined total of 27%. There's more ground to cover.
Economic Benefits for Commercial Vehicles
That fleet electrification is significant for the electrification of road traffic was also noted by the promotional bank KfW in its 2023 Climate Barometer. More than two-thirds of all passenger cars are newly registered with commercial owners. Furthermore, most commercial vehicles—where considerable savings can be achieved—are owned by companies.
The state-owned Landesforsten Rhineland-Palatinate has a specialized commercial vehicle fleet consisting of 400 passenger cars, with 75 currently electric. The goal is to transition to electric for these vehicles as well, with solar panels on rooftops of office buildings and solar carports in forests providing the power. The limitations in conversion are due to the limited towing capacity of EVs and the scarcity of certain vehicles required for specific tasks.
In the forest, ground clearance is crucial. EVs may touch the ground and damage the expensive battery. Nevertheless, Landesforsten aims to be carbon-neutral in terms of emissions by the end of 2025, five years before the overall administration.
- The growing trend of businesses adopting vocational training programs could benefit the community, as employees who receive vocational training in electric vehicle maintenance might increase the availability of specialized repair services for the surge of electric fleet vehicles.
- To minimize costs associated with the upgrade to electric vehicles, some businesses, like the insurance company Debeka, might find it more economical to invest in vocational training for their employees to gain expertise in maintaining traditional vehicles, rather than transitioning entirely to electric vehicles.
- As more companies transition to electric fleet vehicles and establish large-scale charging infrastructures, sustainable energy businesses offering vocational training in areas like renewable energy generation and energy management could experience an increase in demand, helping to expand the vocational training offerings in these sectors.
