The future of fleet management with mixed and electric vehicles

Fleet management is evolving rapidly as electric vehicles (EVs) and advanced technologies reshape the industry. Businesses and fleet managers now face the dual challenge of integrating electric vehicles into their current processes while maintaining efficient operations. 

The transition to mixed and EV fleets  

The global push towards sustainability is making EV adoption a priority for many businesses. However, a 2024 survey conducted by CardSmart, shows only 15% of fleets currently have at least one EV, and infrastructure and costs remain obstacles to broader adoption. By 2030, over half of businesses aim to have 10%-25% of their fleet operating on EVs. 

Benefits of transitioning include: 

• Cost Savings: EVs typically have lower five-year operating costs compared to petrol or diesel vehicles. 

• Sustainability Goals: Achieving environmental targets is crucial as carbon reporting mandates begin to roll out, especially in New Zealand. 

• Long-term Strategy: With fuel options evolving (e.g., hydrogen and hybrids), fleets that electrify now will have better operational flexibility in the future. 

Top challenges for mixed and EV fleets  

While transitioning to a mixed EV fleet offers substantial benefits, it requires overcoming key challenges such as: 

1. Range anxiety: The fear of insufficient battery charge remains prevalent, with charging infrastructure being a major hurdle.  
2. Driver downtime: Finding charging points and waiting for vehicles to charge lead to lost productivity.  
3. Infrastructure limitations: Charging infrastructure in regional and rural areas is notably lacking, complicating transitions for nationwide fleets.  
4. Knowledge gaps: Many fleet operators and drivers are hesitant due to unfamiliarity with EV operation and maintenance.  

Solutions to accelerate fleet evolution  

Despite these challenges, significant opportunities exist to facilitate EV adoption and mixed fleet management: 

• Integrated solutions: Fleet expense management tools like CardSmart +Electric simplify operations by combining fuel expenses, EV charging, servicing, and more on one tax-compliant invoice.  

• Driver education: Training programs for operating EVs help reduce downtime and improve efficiency.  

• Government and industry support: Tax incentives and infrastructure improvements, such as interoperability of charging stations, play critical roles in ensuring smooth transitions.  

• Flexible strategies: Hybrids offer a balanced approach, serving as a bridge during the transition from internal combustion engines (ICEs) to EVs.  

The role of sustainability in fleet revolution  

Sustainability continues to be a driving force behind fleet transformation. Government mandates are beginning to require carbon footprint reduction and reporting from businesses. For instance, New Zealand with policies requiring large companies to report their carbon emissions at the start of 2025. 

Fleet managers can align with these regulations by: 

• Planning for EV adoption on a phased basis.  

• Leveraging carbon offsets where EV adoption is currently impractical.  

• Choosing greener fuel options to reduce overall emissions. 

Actionable takeaways for fleet managers  

Now is the time for fleet managers to take action and prepare for the future of fleet operations: 

1. Evaluate your fleet’s current needs and readiness for EV integration by conducting a cost-benefit analysis.  
2. Use tools like CardSmart +Electric to simplify vehicle expense tracking and drive operational efficiency.  
3. Stay informed about government incentives and industry developments in charging infrastructure.  
4. Build an EV training program that educates drivers on charging procedures, energy-saving driving strategies, and EV maintenance.  
5. Monitor advancements in alternative fuels, such as hydrogen and biofuels, for long-term fleet diversification.  

Fleet management is entering a bold new era where mixed fleets, sustainability, and cutting-edge technology intersect. By staying ahead of these trends, your business can thrive while achieving operational efficiency and environmental responsibility.