Electrification of Commercial Fleets to Advance Companies

As the world progresses into more and more technological advances, electric vehicles are a growing industry with amazing potential. Benefits ranging from financial savings to reduced carbon emissions are catalyzing electric vehicle commercial fleets to emerge as an intelligent transition to be made.

With zero emissions of carbon dioxide, carbon monoxide, sulfur dioxide, and nitrogen oxide, electric vehicles affect the environment in a significantly positive way. While this is fantastic for the environment and can be a major advancement in corporate sustainability goals, reduced pollution is not the only benefit of electric vehicles. Financial advantages should be considered when researching this expanding industry. The purchasing price of an electric vehicle may be greater than a similar gasoline or diesel ran vehicle, but the cost of upkeep for an electric car can result in incredible financial savings. Average national electricity prices vary between countries. As of March 2020, average national electricity prices in USD/kWh were as high as $0.33 in Denmark and as low as $0.08 in India, with the United States closer to India at $0.15 per kWh.

As the electricity would be in replacement of gasoline expenditures, it is important to compare these costs to the price of gasoline in the same areas. As of October, gasoline cost $0.57 USD/Liter in the United States, $1.80 USD/Liter in Denmark, and $1.09 USD/Liter in India. An electric vehicle may consume 34 kWh to travel 100 miles. An internal combustion engine (ICE) vehicle on average maintains around 25 miles per gallon of gas, requiring 4 gallons of gas to reach 100 miles. 4 gallons of gas is equivalent to about 15.1 liters. Therefore, on average, a standard ICE car costs about $8.61 for 100 miles in the United States, $27.18 in Denmark, and $16.46 in India. On the other hand, an average electric vehicle (EV) costs about $5.10 for 100 miles in the United States, $11.22 in Denmark, and $2.72 in India. This is equivalent to approximately 40.7% savings in the United States, 58.7% in Denmark, and 83.5% in India. Along with the day to day savings, many electric vehicles qualify for federal tax credits up to $7,500 if bought new in the United States.

As the industry progresses, more and more corporations are investing in technology for deliveries and fleets. Amazon recently made a contribution of $700 million in Rivian, an emerging EV manufacturer, with plans to incorporate 100,000 fully electric delivery trucks to their company; this major investment goes along with Amazon’s goal to have net-zero carbon emissions by the year 2040. In Oslo, Norway, DB Schenker has incorporated an electric fleet consisting of 11 Volvo FL and plans on adding 12 more vehicles by the end of the year. The Volvo FL is designed specifically for urban delivery and waste management. More and more companies are leaning towards this major opportunity to electrify their fleets, resulting in many benefits. The lower costs and increase in sustainability allows for companies to grow, and ultimately benefit supply chain logistics immensely.