Opinion: Challenges lay ahead for fleet EV transition

By Adam Hall, director at Drax Electric Vehicles

While 2023 was a positive year for the EV industry, 2024 will be somewhat more challenging.

The tough financial climate this year has meant that many fleet-operating businesses, which have long been the driving force behind the nation’s transition to electric, have had to scale back on larger-scale sustainability projects.

This isn’t to say that they’re any less determined to make a real difference towards net zero; it just means that they’ll need to recover from the financial hits of the past few years before committing to high-investment projects.

However, as we saw during the pandemic, the EV industry is extremely resilient to economic ups and downs. As such, we should fully expect to see more major milestones over the next 12-months, particularly as we see the rollout of lower cost models.

A realistic perspective is needed 

As we enter the new year, I‘m reminded of just how challenging the current financial climate is. We’ve seen struggles across many industries, with businesses doing their best to keep the lights on and their people employed. 

Therefore, we must be realistic that it will still be a tough environment for businesses in 2024 and empathise with those who can’t yet prioritise larger sustainability projects.

This doesn’t mean they are less determined to make a real difference towards net zero.

Before committing to high-investment projects, these businesses and their teams must recover from the financial hits 2023 has inflicted. 

Could net zero policy re-evaluations be on the cards for businesses?

While we hope for better economic stability in 2024, we must encourage and support those who can afford to invest in a sustainable future to do it now.

From listening to customers, we’re confident in the large strategic fleets’ commitment to the EV transition going into next year.

The new year may bring a fresh perspective for many, with hints of businesses’ net zero policy re-evaluations, including how EVs fit within the plan realistically.

We’re now at a stage where most decisions are difficult and come with complex issues and expenses. The focus for companies and fleet managers alike will be to reduce costs and boost efficiencies.

The rollout of more capable models

This year has seen a significant increase in available models of electrified vehicles.

There are now over 80 models for fleets and consumers to pick from, with over 20 models of electric vans.

A British Vehicle Rental and Leasing Association (BVRLA) report discovered the company car market is a big driver towards the EV transition. However, as many are aware, the van market is struggling.

While concerns over payload, charging infrastructure and range will still exist for fleets, the advancements in capable electric van models will be interesting to follow.

Manufacturers must be encouraged to deliver a broader spectrum of fit-for-purpose models.

If the UK van market is to commit to the switch, there must also be greater support for fleet-friendly infrastructure from local authorities. For example, the accessibility of chargers for large vehicles.