Many scientists believe that the transportation industry is hastening climate change because it will be responsible for 27% of global carbon emissions by the year 2020. Transportation will be the next significant sustainability problem as we make strides toward decarbonizing the electrical supply. Businesses can greatly lower their risk of climate change by converting their traditional fuel-powered commercial vehicles to electric vehicles, providing staff with access to on-site charging stations, or turning parking lots into Electric Vehicle-friendly areas.
Nevertheless, the advantages for business go beyond merely having a favourable effect on the environment. We all know and understand the increasing inflation, which has also led to high operational costs. For instance, look at the Tata Yodha price and the operational cost of driving it; even though it has multiple advanced features, the high operational costs are primarily due to rising fuel prices. Here are some reasons why the corporate world is adopting more electric vehicles in its fleet.
Why Is The Government Making A Bigger Effort To Promote Electric Vehicle Adoption?
One only has to look at India’s imports to understand why the Indian government has been pushing for Electric Vehicle adoption or alternatives to fossil fuel-driven transportation. Try to guess which good the government spent the most money importing. The answer, imports of fossil fuels, notably crude oil, have been covered extensively in the news during the past year. In FY 2020–21, India had import and export bills of $ 394.43 billion and $ 291.80 billion, respectively, resulting in an import deficit of more than $100 billion. Now that it was during the first wave of the coronavirus pandemic, we’ll account for the slowdown in economic activity and decline in the price and demand of oil on a worldwide scale; yet, India spent 62.7 billion dollars on crude oil imports in the fiscal years 2020–21.
That isn’t so terrible, is it? It accounts for approximately a fifth of all imports. India’s government paid 112 billion dollars in FY 2018–19, 101 billion dollars in FY 2019–20, and only 82.4 billion dollars in FY 2021–22—a nine-month period from April 2021 to December 2021. Now, this is where things start to become more interesting because crude oil has been trading for less than 70 dollars a barrel throughout the current fiscal year. Since the 2014 crisis, crude oil prices have never been higher as the world economy begins to expand.
Gasoline prices will increase as a result of the current oil price of 88 dollars per barrel and its upward trajectory, which is comparable to the increase in fuel prices in India expected to take place in the middle of 2021. The import gap will reduce if imports of crude oil reduce and domestic output of renewable energy increases. Furthermore, a thriving Electric Vehicle market would increase wealth, prosperity, and employment while considerably reducing CO2 emissions.
India’s aspiration and adoption of Electric Vehicles have been sparked by actions taken by the state and federal governments. It has additionally prompted and provided incentives for the commercial sector to become more open to Electric Vehicle adoption, notably in the logistics and transportation sectors. In order to create space for effective transportation business, new infrastructure has been developed and existing infrastructure, including roads, charging stations, national highways, and expressways are now upgraded.
What Is The Reason For Increasing Interest In Electric Vehicle Adoption In The Transport Business?
Due to its environmentally benign attributes and relatively cheaper total cost of ownership, e-mobility is gaining popularity in India. Companies like Godrej Tooling are striving to produce tools and dies for new engines, battery boxes, and high-strength, low-weight sheet metal parts as the industry swiftly shifts gears toward EV adoption. In order to create high-precision dies for components with complicated geometry and achieve higher functional criteria, they are also utilising additive manufacturing and 3D printing. But the advantages for the company go beyond just having a positive impact on the environment. Here are four of the most significant arguments in favour of corporations adopting an Electric Vehicle fleet for their company.
1. Reduce Costs and Maintenance
Businesses can cut costs by switching to electric vehicles for their fleets of cars, transportation systems, and fleets of public transit. Businesses can save a lot of money by reducing gasoline expenses and utilising government incentives and tax cuts.
Because they have fewer mechanical components prone to failure than ICE vehicles, Electric Vehicles are intrinsically more dependable than ICE fleets. They frequently provide better information to enable more preventative maintenance, which lowers maintenance costs. Additionally, ‘at work’ charging, which takes place while workers are on the job, can boost productivity and guarantee that fleet drivers always start the day fully charged, boosting savings throughout your entire organisation.
2. Contribute to CSR Activities
Regulations are always changing, but moving to Electric Vehicles lowers the likelihood that your company will not adhere to ever-stricter government regulations, protecting your brand.
Businesses that adopt corporate Electric Vehicle fleets can strengthen their brand reputation by showcasing green leadership and stronger sustainability credentials. This will increase customer loyalty, appeal to potential new hires, and increase employee engagement. Consumers and employees are becoming more concerned about the environmental impact of the companies they buy from and work for.
3. Monetize Electric Vehicle Facilities
Electric vehicle charging stations can be a possible source of value for your business rather than a cost in a number of ways. Businesses can immediately create income and benefit from supply-side incentives by installing on-site power and storage equipment to facilitate EV charging. With the development of vehicle-to-grid technologies, this potential will only expand.
The indirect advantages may potentially be greater. Retailers and leisure enterprises, in particular, can monetize their Electric Vehicle facilities and create a new revenue stream by installing charging infrastructure.
4. Increases Employee Loyalty & Retention
As a result of local air quality improvements and reduced exposure to hazardous NO2 and other pollutants, employees experience enhanced health and safety. Since your company will be facilitating simple access to on-site charging stations, installing Electric Vehicle infrastructure, such as smart charging, can increase recruitment.
Employee engagement, employer attractiveness, and retention have all been found to improve when a firm shows a commitment to decreasing its carbon footprint via fleet operations or daily commutes. Even cheaper transportation expenses.
Key Considerations for Corporate Electric Vehicle Managers
- Large changes can be successfully managed. Preparedness is the key. A strategic placement of charging points and how they will link to the grid is required.
- You can use the simulation models we offer to better understand where to locate your charging infrastructure to cut expenses.
- The next recommendation is to link your current IT infrastructure to a generic charging optimization system.
It is already obvious that electric vehicles will replace conventional combustion-engine vehicles we have used for almost a century. By the end of this decade, electric vehicles should be the standard as consumers and fleet management businesses move toward this choice.
Fleet management firms must upgrade their fleet management systems to handle the new set of variables, challenges, and advantages that a Corporate Electric Vehicle Fleet presents in order to keep up with this development.