While sustainability for many means supporting the long-term ecological balance by not harming the environment or depleting natural resources, this means – for fleet managers – the use of more than zero-emission vehicles.
To learn more about what to expect in terms of fleet and mobility in 2022, including a list of some of the most sought-after electric vehicles (EVs) for the year, download Global Fleet’s latest e-book at the subject.
Five of the seven steps to a sustainable strategy (Global Fleet 2022 eBook)
• Encourage employees to use video conferencing to avoid travel.
• If travel is essential, ask staff to choose transport with the least CO2 impact, such as trains.
• Identify fleet vehicles with trip profiles within the EV range.
• Identify drivers with off-street parking at home who can install a home charging station.
• Assess workplace parking lots where EV charging stations can be installed.
Fleets are responsible for three greenhouse gases (GHGs), namely carbon dioxide (CO2), methane (CH4) and nitrous oxide (N20), harmful emissions that could be reduced with zero emissions.
In North America, only a small percentage of light passenger vehicles sold domestically fall into this category, or to say those without an internal combustion engine (ICE). As the United States accounts for over 90% of the fleet market in the region, this will be the focus below. Also note that alternative fuels such as hydrogen are only a fraction of the market, so I will address electric vehicles.
In 2021, about 9.75% of new vehicles sold in the United States were electrified and when considering 100% battery electric vehicles (BEVs), the share was 4%. While BEV sales increased 89% to 487,460 units, hybrid and plug-in hybrid (PHEV) sales increased 84% to 969,407 units.
Although these numbers exceed electric vehicle sales in Latin America, they are lower than those seen in Europe and China. The transition to electric vehicles, however, will accelerate in the coming years given public and private sector discussions, with California being the current leader.
California, as a standalone market, is the 10th largest auto market in the world and that’s why subscription platform startup EV Autonomy is starting there, according to co-founder George Bauer (left picture).
“We are currently on order for 500 Tesla Model 3 cars and expect to have 10,000 electric vehicles by the end of 2022,” Bauer told Global Fleet.
Today, battery production consists primarily of the Gigafactory in Nevada operated by Tesla and Panasonic and Tesla’s new factory in Austin, Texas. According to the US Department of Energy, at least 13 other battery factories are currently being built in the country, eight of which are joint ventures between automakers and battery manufacturers.
In terms of charging infrastructure, the U.S. Department of Transportation and Energy this year has planned $5 billion in investment over the next five years to build a nationwide electric vehicle charging network along interstate highways and designated alternative fuel corridors.
A second grant program (seen at $2.5 billion) to further increase access to electric vehicle charging will also be announced in late 2022. The investments are part of the National Electric Vehicle Infrastructure (NEVI) formula program in the under the $1.75 trillion Federal Infrastructure Act, which includes building electrification infrastructure and clean energy projects.
President Biden also announced his intention to purchase only 100% zero-emission light-duty vehicles for his fleet starting in 2027, and that all vehicle acquisitions will be emission-free models by 2035. Last year (2021 ), the federal government had about 650,000 cars. and trucks of which less than 1% were electric.
Meanwhile, there has been a flurry of multibillion-dollar EV investment announcements from most major automakers.
While Ford Motor Company has planned at least $30 billion in investment from 2016 to 2025, General Motors more recently announced $35 billion from 2020 to 2025, and that doesn’t include projects from companies like Tesla. , Hyundai, Toyota, Volkswagen, Stellantis, Mazda, Lucid, Nikola, Canoo and a host of smaller EV startups.
“We are currently collaborating with companies like Amazon and Uber to offer all-electric utility vehicles (LCVs) for urban transportation and logistics and distribution expected to begin in late 2024″ Electric vehicle manufacturing startup Indigo Technologies Chief Strategy Officer Greg Tarr (pictured right) told Global Fleet.
With all this activity in the market, US fleet managers can expect a wave of electric vehicle launches over the next few years, giving them more ways to help their businesses meet their environmental sustainability goals.
According to a report from Bank of America analysts, more than 85 new models are expected to launch in the 2022-2025 model years, so fleet managers, keep your eyes peeled!