Despite Changing U.S. Policy on EVs, Fleet Electrification is Here to Stay

The leading auto industry services firm Cox Automotive received a resounding thumbs-up from commercial fleet managers when it surveyed their opinions about electric vehicles early last year. U.S. federal policy has shifted since then, but the foundational motivations behind fleet electrification have not changed. Fleet managers in the U.S. are continuing to respond to the performance advantages of EVs and to global policies that support electrification.

The fundamentals behind fleet electrification remain the same

Only about 14 percent of U.S. commercial fleets included electric vehicles last year, according to Cox Automotive's research published in July.  Still, its survey supported the potential for a rapid increase in EV adoption in the coming years based on clear bottom-line advantages over conventional vehicles.

“EVs bring higher scores among fleet owners in key metrics such as ‘overall satisfaction, ‘cost of ownership’ and ‘vehicle usage and capabilities,’" the report found. Thanks to these perks, operators using electric vehicles “have a striking 90 percent likelihood of acquiring additional EVs" the next time they purchase vehicles for their fleets, Cox found. 

Electric vehicles can outperform other cars on a total cost of ownership basis — which accounts for the cost of fueling and maintaining a vehicle along with its up-front sticker price. Research from the consumer intelligence firm JD Power found that EVs can surpass other cars on total cost of ownership within just five years.

Despite the profound shift in federal policy under President Donald Trump in the months since, fleet owners have not changed their outlook on EVs, says Michael Kodransky, senior director of climate and energy for the nonprofit advocacy organization Ceres. 

“The No. 1 thing moving forward is the commitment by fleet owners and operators to decarbonize,” said Kodransky, who works with the Corporate Electric Vehicle Alliance (CEVA), a global fleet electrification initiative led by Ceres. “Companies are looking to address their Scope 1, 2 and 3 emissions," he said, referring to greenhouse emissions produced by a company's operations and value chain, "and they have made these commitments.”

More variety for fleet managers

Aside from bottom-line benefits and climate commitments, access to a greater variety of vehicles is also supporting momentum in the fleet electrification movement, Kodransky said.

Industry leader Tesla has chosen not to introduce fleet EVs aside from passenger cars, but other automakers are marketing a wide variety of EVs to fleet owners — from electric vans, utility vehicles and box trucks up to Class 8 heavy-duty trucks. “Companies see that battery technology is improving, and they’re looking at the total cost of ownership across different class segments. They are able to access more varieties of vehicles to meet their needs, including Class 8,” Kodransky said. 

One leading example among U.S.-based fleet operators is CEVA member Amazon. The company's fleet includes thousands of custom-built electric delivery vans manufactured by the U.S. startup Rivian. The collaboration began in 2019 and was initially exclusive to Amazon. This year, Rivian announced that its electric vans are now available for sale to other commercial fleets.

The employee satisfaction factor

Another factor supporting fleet electrification is employee satisfaction. That is a particularly important element in the transportation and logistics fields, where a shortage of qualified truck drivers has been looming for years.

CEVA member States Logistics Services, Inc., for example, points out the benefits to both employees and the bottom line after adding electric fleet trucks. “This bold move showcases our commitment to sustainability and innovation in the logistics industry, but that’s not all — this electric truck not only reduces emissions, but also offers a quieter ride and improved fuel efficiency compared to traditional diesel trucks,” the company's website reads. 

In addition to delivery trucks, States Logistics is also deploying electric tractors to move freight around shipping yards, contributing to a “cleaner and smoother” experience for workers, according to the company. The tractors were acquired from the Canadian manufacturer Orange EV, which is also headquartered in Kansas and has been marketing electric yard trucks since 2015. CEVA members DHL and Ryder are among the many fleets owners whose electrification efforts are supported by Orange.

The EV charging difference

In addition to EV acquisition and development efforts, CEVA members are helping to uncork bottlenecks in the EV charging space. CEVA member Siemens, for example, recently introduced a home EV charging system tailored for fleets in which drivers take their vehicles home between shifts. The firm’s Depot360 Home Charging Reimbursement system enables fleet managers to accurately reimburse drivers who charge at home, even if other vehicles use the same charging port.

Another CEVA member, the property management firm CBRE, is introducing new solutions for EV charging at hotels and other multi-occupant properties where charging infrastructure has been slow to develop. 

Outside of CEVA, other charging station stakeholders are also continuing to introduce new charging solutions that benefit fleet operators and the general public alike. One example is a transportable, battery-integrated charging station developed by the California startup ElectricFish. The new charging station can use existing grid connections, eliminating the expense of installing new electrical infrastructure.

Organizations within and outside of CEVA are also deploying their public profile to lead by example. In one particularly interesting example, NASCAR (the National Association for Stock Car Auto Racing) recently installed 30 EV chargers at its headquarters in Florida. The new chargers will help NASCAR meet its fleet electrification goal, as part of its efforts to reach net-zero greenhouse gas emissions for its non-race operations by 2035. 

Next steps for fleet electrification in the U.S.

As of this writing, the Republican-controlled Congress is on track to eliminate federal incentives and subsidies that support EV sales in the U.S., but the fleet electrification movement will continue. CEVA member Merchants Fleet emphasizes that even in the current environment of uncertainty, fleet electrification remains “a crucial component of a clean energy future.”

“Innovation always comes with twists and turns, and the journey of fleet electrification is no exception,” said Lisa Drake, the company’s director of fleet electrification