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A Fleet manager’s hazy and seemingly ever-changing journey to electrification

4 August 2021

A Fleet manager’s hazy and seemingly ever-changing journey to electrification

The EU is fighting climate change through ambitious policies and has put forward a plan to cut emissions by at least 55% by 2030. By 2050, Europe aims to become the world’s first climate-neutral continent.

To achieve these ambitious targets 15 EU countries offer bonus payments or premiums to buyers of (semi) electric vehicles while most other countries grant some kind of tax reduction or exemption for buyers and owners of (semi) electric vehicles. Only 3 EU member states (Croatia, Estonia and Lithuania) do not offer any tax benefits or incentives for (semi) electric vehicles at all.

Corporates are driving fleet greening

Cars, and more specifically company (perk) cars, are being unfairly scrutinised by the general public. Passenger cars are considered a major polluter, accounting for 18% of total CO2 emissions in Europe (EU Parliament). According to ACEA, passenger cars in Europe are now on average 11,5 years old. As the average company car is replaced every four year and nearly two out of three new cars are sold to the corporate channel, it is clear corporate fleets are driving the greening of the fleet.

And just as the market share of electric cars is on the rise, largely thanks to the growth of plug-in hybrids, rumours are starting to emerge about cutting back on subsidies for PHEVs, plunging the troubled fleet manager into uncertainty once again…

Alternative powertrains vs annual mileage profile

 

Helping fleet managers define their strategy

Let it fleet takes pride in helping fleet managers redefine their car policy or electrification strategy, taking into account all these official regulations, so that they can see the wood for the trees.

Starting from an in-depth audit we help customers future-proof their policy, covering eligibility, powertrain guidance, charging infrastructure and much more. We establish a baseline on real driver profiles for a full TCO driven EV & PHEV leasing benchmark.

Let it fleet also focuses on a modern signature service for to the process fundamentals. State of the art policy documents like service level agreements and key performance indicators form the basis of a successful Request for Quotation (RFQ) to determine future lease rates.

Impact of taxes & fiscality on TCO & BIK

 

Tailored scenarios

Tailored scenarios are rendered to reflect the anticipated TCO of electrified vehicles and forecast spend with different powertrain mixes and driver profiles within our modelling tool.

Full TCO calculation in a one pager for the driver. Showing them if the vehicle they selected fits in their TCO budget, or if requires a personal contribution (and if so which amount) or if it is simply too expensive and thus out of scope.

 

Change management principles are also of the utmost importance at the roll-out stage focussing on clear messaging to the wider stakeholder community. As with any strategy, the proof is in the “operational” pudding, which is why we designed clear communication templates for the drivers, to guide them through this complex maze when choosing their next company car.

Are you ready to let it fleet? Find out how the automotive and fleet expertise of let it fleet can support your fleet strategy.

 

All credits: www.fleeteurope.com

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