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Electric Vehicles: The Big Questions From Fleet Buyers

May 31, 2022

Our recent LinkedIn article looked at some commonly asked questions our dealership staff are fielding around EVs from private buyers. But what about EVs as a fleet proposition, while many considerations are the same, fleets do have other considerations and ultimately with higher commercial stakes.

Bruce Fowler represents of one of the newest EV brands to market, Polestar, says his brand is seeing private and corporate enquiry like he’s never experienced in his automotive career. And while some questions from fleet buyers are the same no matter what their looking at, shifting priorities for corporates are also changing the vehicle assessment process.

“It’s not just about being seen to be doing the right thing, it’s very much about doing the right thing.” Says Bruce, “And that actually covers a pretty wide spectrum of considerations, from what is the true impact on the environment, to brand image and to how do our staff actually feel about the vehicle.” So, with that in mind we decided to look at some of the questions fleets have around EVs. 

 EV’s may emit zero emissions, but they do produce emission during production and electricity generation. So, what’s the real impact?

To Bruce’s point about genuinely doing the right thing, transparency around the whole carbon footprint of an EV is a valid consideration for responsible corporations. Every manufacturer is different, but by-in-large, an EV is more.

What happens to the battery at the end of the vehicle’s life?

EV battery recycling is an important consideration. Responsible corporates want to know what they buy isn’t just going to add to landfill later on. And while much of an EV battery can be recycled, we are still uncovering ways to recycle them 100%. Rest assured however most EV batteries have a vehicle lifespan of 10 years or more but remain as useful power solutions beyond the car for many years after that. Initially in containerized energy solutions for housing or emergency power supply and even for many years beyond that as back up energy storage for telecommunications systems. The actual life of an EV battery extends far beyond the life expectancy in the car itself. And the industry is confident in finding solutions to completely recycle all elements in that timeframe. Also, newer battery technology is being developed to ensure better recyclability in years ahead.

Are my staff safe?

Very safe. EV vehicles and components are rigorously crash tested to ensure EVs are no greater risk than an Internal Combustion vehicle. Each battery has many failsafe systems inbuilt and the instances of catastrophic battery failure in an accident are extremely rare. What’s more current electric vehicles are typically equipped with very comprehensive passive and active safety technology to ensure optimum occupant safety. In New Zealand it is important to be aware that grey imported vehicles first registered overseas are not always the same specification as what’s sold new in New Zealand by approved distributors. In the case of some second-hand products, that could mean you’re missing a side or curtain airbags and a 5-star NCAP rating. Make sure you do your research if considering a used import vehicle for your fleet.

Are EVs fit for commercial use?

In most cases, absolutely. There are now thousands of EVs successfully servicing all sorts of businesses in New Zealand. But it’s important to remember every business’ requirements differ, there may or may not be a perfect EV solution available for every specific need within your fleet just yet but that won’t be the case for long, the EV landscape is evolving very quickly. Prominent factory dealer networks with multiple brands will have a good idea of timelines for future product, so it pays to do your research, the specialist EV you need might be arriving sooner than you think. Converting some of the fleet now to reap the benefits while committing to convert the rest of the fleet as feasible is a great strategy, it allows you to leverage EV adoption in your sustainability programme and messaging, engages staff around transitioning to electric vehicles and reduces your overall operating costs.

So, they are cheaper to run?

Very much so. Especially with current fuel costs! But aside from the fuel, there is no oil service every 10,000km, no oil filter, or fuel or air filters, no timing or drive belts and spark plugs. Sure, some service items remain, tyres, cabin filters and brakes, but the brakes typically last much longer as the vehicle also uses kinetic energy to recharge the battery. This is called regenerative braking and it helps slow the vehicle without wearing friction materials like brake pads or discs.

By in large the electric motors and charging components are very robust and last the lifetime of the vehicle. Charging during off peak times will greatly improve your energy costs.

What about residual value.

For some of the newest vehicles available, like Polestar, there isn’t enough data available for residual value certainty, but Bruce Fowler says EV’s traditionally command a better residual value than an internal combustion engine. A trend we don’t see changing for the foreseeable future, the demand is high in the second-hand market so a premium can be expected plain and simple.

Transparency around the environmental impact is important, what about the whole of life sustainability?

Naturally, this is a critical consideration for businesses who care about their impact on the environment. Ethically and environmentally sustainable sourcing of materials, manufacturing, distribution and end of life recyclability should all be factored by fleet purchasers.

EVs tend to lead the industry in terms of their use of sustainable materials like recycled plastics and aluminium, vegan leather, natural dyes, Hypoallergenic surfaces and the like. Brands that sell EVs exclusively, like Polestar, certainly have a keen focus on this aspect.

Fowler says Climate-neutrality is at the core of the Polestar brand and permeates every aspect of the company. To this end, they are the first brand in the world to openly publish a life cycle assessment report on their models. This ensures complete transparency for buyers around the whole of life impact of the Polestar 2. You can read the Polestar 2 Life Cycle assessment report here: https://www.polestar.com/dato-assets/11286/1600176185-20200915polestarlcafinala.pdf