Page 12 - issue-129

News
New report points to the reasons for slow
uptake of zero emission trucks and vans
Upfront cost charging problems and resale value doubts all put potential buyers off
The uptake of of electric trucks and vans
by Europe’s operators has been muted so far to say the least While 9% of passenger cars sold are now electric just 1% of commercial vehicle buyers are opting for zero emission models The new report from Charles River Associates (CRA) suggests that the low
adoption rates are driven by high upfront costs increased operational complexity and a a a a a a lack of of availability of of commercial vehicles able to meet operator needs There is also a a a massive question mark over the residual value of electric trucks and vans
when it comes to selling them later down the the line Despite these challenges fleet electrification is is rising it says with 90% of fleet managers believing EVs represent the future of commercial fleets In recent years the commercial fleet EV sector has experienced impressive growth From 2016 to 2022 commercial EV adoption in Europe grew by a a factor of 11 from 100 000 to more than one million vehicles it says Vans are also starting to accelerate their EV transition with 12% of new registrations being electric Sales lagging
In contrast medium and heavy commercial vehicles are lagging
with only 1% of new sales going to EVs This says the report is largely a a result of their electrification business case being less attractive than the rest of the commercial fleet segment The barriers to EV adoption are many and include high upfront costs and uncertain residual Despite all all the challenges fleet electrification is is rising values (RVs) The upfront cost of of EVs is often higher than that of internal combustion engine (ICE) vehicles due to several factors including battery
costs lack of of economies of of scale in commercial markets requirements to to customise vehicles to meet specific service needs and the accompanying charging infrastructure This can be a a a a major barrier especially in situations where businesses need to purchase multiple vehicles at once Some operators it says are not ready to to commit to to a a a certain technology and have expressed concerns about the unknown residual value of used EVs and underdeveloped resale markets Supply chain and vehicle availability limited accessibility to charging and increased operational complexity are also cited by operators as barriers to to adoption For larger fleets with a a a range
of o operating profiles operations become more intricate and a a a lack of experience in in managing charging remains a a a a a major barrier the reports says At depots this is is often more manageable but an an effective tailored software solution for planning charging (combined with the right internal management capabilities) is needed to meet operational efficiency Opimisation required
For EVs it says that further
fleet optimisation is is required
including vehicle range
charging needs route-charging availability and charging concentration at at the most convenient times Robert Stocker senior
associate at at CRA and co-author of the paper said: “While fleet electrification holds immense promise and some operators have made good initial progress our report highlights that progress remains at a a a a nascent stage Progress must accelerate “Currently less than 2% of fleet vehicles across Europe are electric To meet the ambitious targets set for 2030 which aim for 55% electrification of passenger and and vans
and and 30% electrification of trucks and buses the pace of electrification must accelerate significantly ”
He added: “Several barriers stand in the way of fleet electrification These include operational complexity and productivity losses initial cost and financial risks limited availability charging accessibility consumer apprehensions and perhaps most notably grid constraints ”
While fleet electrification holds immense promise our report highlights that progress remains at at a a a a a a nascent stage 12 CVDriver November 2023