Fleet Electrification: What do you want to know?

Q. How should I measure an EV’s total cost of ownership?

A. Determining the total cost of ownership (TCO) of any vehicle in your fleet is critical for understanding its financial impact. So what does this entail for electric vehicles?

The first expense to consider, which is also currently the largest, is the acquisition cost of the EV itself. Presently, EVs have a higher sticker price than their equivalent internal combustion engine (ICE) model. As battery technology continues to evolve we should see these prices continue to fall and in the meantime there are a growing number of rebates being offered.

It is the costs associated with the ongoing operation of the vehicle that can lead to fleets saving money by going electric. On average, electricity is much less expensive than gasoline or diesel. This results in the significantly lower fuel costs over the lifespan of the vehicle. EVs also have fewer moving parts and in general require less maintenance than ICE vehicles, again saving money.

The costs associated with charging infrastructure should not be added into an EVs total cost of ownership. Charging equipment should be seen as a capital expense, similar to the installation of an on-site gas pump. Depending on your situation, multiple EVs may be able to charge using the same station and if your employee’s are charging at home you may not require any additional equipment.

When making any business decision, you should make informed choices based on data instead of assumptions. Check out our newly launched Fleet Electrification Knowledge Center to get everything you need to know about adding EVs to your fleet.