Why Electric Vehicles Are Better For Your Fleet ?

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Fleet managers aim to reduce vehicle ownership costs by purchasing vehicles with high resale value and good fuel economy. While Electric vehicle (EV) adoption in fleet applications have been low due to cost and uncertainty, EV technology has developed significantly in the past few years. EVs can be a great choice for fleet managers that are looking to save on costs while greening their fleet.

According to Wheels Inc., a fleet management service provider in Chicago, 45% of fleet operation cost is linked to depreciation, followed by fuel and maintenance costs which account for another 41%. With depreciation, fuel, and maintenance being 86% of vehicle ownership costs, it becomes very important to analyze and measure potential savings when replacing old vehicles.

For this article, we researched two electric vehicles with comparable gasoline models: the Volkswagen e-Golf with the Volkswagen Golf, and the Hyundai Ioniq Electric with the Hyundai Elantra GT. We assumed that these vehicles would travel 20,000 kilometers a year, with gas prices averaging $1.20 per liter.

Depreciation costs

While the exact price of each vehicle varies a little, it was found that the depreciation of internal combustion engine (ICE) vehicles was significantly more, by an average of 23% per year. The Golf was estimated to depreciate 26% more than the e-Golf per year, and the Elantra GT was estimated to depreciate 20% more compared to the Ioniq Electric. Fleet managers are estimated to save between $570 to $750 per year, per vehicle, on depreciation costs by choosing the EV option. That is a significant amount of money that fleet managers can save by making the switch to EVs.

Fuel and maintenance costs

Fuel and maintenance is the second largest expense for fleet managers. It is estimated that the Golf will cost $2,000 in gasoline per year, while the e-Golf will only cost $565 in electricity. Additionally, the maintenance costs are estimated at $560 for the e-Golf, whereas the Golf would cost approximately $700 a year. That is close to $1,700 of savings in fuel and maintenance per year by choosing an EV.

This is because electricity is significantly cheaper than gasoline on a per kilometer basis. It is also important to remember that EVs do not require regular maintenance items such as oil changes and transmission fluid changes – greater vehicle utilization because of less downtime. The brakes also last significantly longer due to regenerative braking, and since there is no engine, tune-ups are not needed.

Strategies for muncipalities to improve driver efficiency

Municipal vehicles are an essential part of the transport system. However, municipal

fleet managers are under growing pressure from rising fuel costs, congestion, and the

need to reduce environmental impacts. National targets for reductions in greenhouse gas

(GHG) emissions require further efficiency improvements, as poor air quality becomes an

increasingly serious problem in many urban areas.

This sustainable fleet management series has been designed specifically for municipal fleet

managers. It focuses on the key strategies that will help managers reach their targets for

reducing fleet fuel consumption, and emissions of greenhouse gases and other airborne

pollutants.

Eco-driver training

If eco-driver training was not previously part of your drivers’ continual training and

development program, then it will have to be issued to all of your current drivers, as well as

to new recruits.

Investing in eco-driver training can improve your fleet’s MPG by up to 15%. It has also been

proven to drive positive results in the following additional areas:

? Reduced fleet fuel consumption and carbon footprint

? Lowered risk of traffic collisions

? Reduced vehicle wear and tear

As well as covering eco-driving principals such as planning ahead and anticipating traffic

flow, modules should also cover vehicle checks, effective load management, fuel efficient

route planning (if drivers plan their own routes), and training in how the telematics system

monitors driving practices.

Vehicle telematics systems for continual feedback and development

After their drivers, vehicle telematics systems can be the municipal fleet manager’s most

valuable tool for reducing fuel consumption. Telematics systems provide the management

team with reams of reports to give them complete control over their assets, and how their

drivers handle them.

Beyond the operational benefits discussed in the previous two guides in this series,

telematics systems can also be used to effectively manage drivers, offering the

opportunity to tailor feedback and development training to each driver’s specific driving

practices.

If for example the telematics data shows that one driver has idling rates above the

workforce average, but handles the vehicle efficiently with low instances of harsh braking,

acceleration and cornering, then training can focus down on the one area that is lowering

their fuel performance.

As well as being used to guide regular training, telematics data can also be fed back directly

to the drivers in the moment. Alerts can be sent to drivers when they exceed speed, idling

or harsh braking thresholds, thereby helping to proactively reinforce correct behaviour.

Incentives to eco-driving

Many fleets have found substantial savings by using the data from their vehicle telematics

systems to create an incentive system that rewards drivers for behaviors that reduce the

fleet fuel consumption.

The first challenge with this management practice is in creating a level playing field. If, for

example, a municipality wants to cut fuel bills, then measuring and comparing drivers’ total 

consumption clearly isn’t fair because different vehicles and mileages will skew the results.

Equally, fleet managers must decide whether they wish to reward excellence, or

improvement, which may be two very different things.

Leaderboards and scorecards

One management method that can prove to be effective is the use of eco-driving

leaderboards, using a combination of data such as average monthly idling rates, fuel

efficiency, instances of harsh braking, acceleration and cornering, and accident rates to

rank driver performance.

Drivers at the top of the leaderboard may be rewarded with a bonus that could in turn

be linked to the provision of training to new recruits, with top ranking drivers gaining the

status of ‘coaching eco-driver’.

By coupling this status with a training role, you can give the position a real value and

prestige, making it something that your drivers aspire to reach.

When establishing the criteria for assessing drivers on an eco-driving leaderboard, be

mindful of the fact that some routes may be inherently more fuel efficient than others, and

so drivers may need to be pooled into duty cycle groups, and assessed within these.

For example, a driver with an inner city route, with a shift that coincides with morning or

evening rush hour will have much higher idling rates and lower fuel efficiency than drivers

on outer routes that are able to cover long distances at more fuel efficient speeds.

You will also need to break the leaderboards down by class of vehicle in order to accurately

compare the differences in driver performance, as opposed to vehicle performance.

At the end of the day, there is no substitute for getting the best performance out of your

drivers than consistent and positive leadership, together with structured training and

development.

Reduce accident and maintenance costs

Aggressive driving is the principal cause not only of low fuel efficiency, but also of

avoidable accidents, burned out clutches, and worn out brake pads. As such, the provision

of training on fuel efficient driving not only reduces the fleet’s fuel costs, but also has been

shown to reduce accident rates and costs associated with vehicle wear and tear. This in

turn will help to reduce fleet insurance premiums.

Overcome drivers’ barriers to change

For all of these initiatives to be successfully implemented across your workforce, they

must be presented to drivers in a sensitive and timely manner, involving workforce

representatives in the decision-making process and taking their feedback and suggestions

on board.

As with all employees, drivers can be sensitive to changes in their work practices, and

hesitant of additional equipment in their vehicles that monitors and tracks their behavior. 

However, most of these barriers can be easily broken down explaining the benefits that

the changes will bring to the municipal budget, to the local environment by improving air

quality, and to the individual drivers by making them more attractive candidates for future

roles in their careers as professional drivers.

Telematics to prevent fraudulent usage

As well as being used to encourage and instill positive behavior, vehicle telematics can also

be used to safeguard the municipal fleet budget from fraudulent driver behavior.

Geofences can be established, with alerts sent out to the operations team if the vehicle

leaves the designated area, and vehicles can also be set up with authorized shift times,

creating alerts if they are utilized outside of this time period.

Fleet management with FleetCarma

FleetCarma’s fleet management software can be fitted to all vehicles in your fleet, and with

complete electric vehicle integration, it will continue to help you reduce operational costs

and improve driver safety as you transition vehicles to electric.

With FleetCarma’s software, you can view all your fleet data, including distance, fuel

efficiency, idle fraction, electricity usage, charging data, emissions, eco-driving, and more

for each vehicle.

Conclusion

Other than the type of vehicle used, the driver is the single most important factor

affecting fuel economy. Speeding, idling, and harsh acceleration & braking all increase fuel

consumption and increase emissions of PM, NOx and other greenhouse gases.

Any management technique that improves driver behaviour will reap significant benefits in

terms of reduced fuel costs, accidents and insurance premiums, and reduced vehicle wear

and tear, as well as reducing your fleet’s impact on the environment.

When all three principals of sustainable fleet management are considered in unison, then

the savings across the entire fleet can be significant:

? Minimize transport demand

? Improve vehicle efficiency

? Improve driver efficiency

These principals all require ongoing monitoring and target setting, in order to ensure that

performance is continually assessed and improved.

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