More than half of Australian businesses are planning to transition from petrol to electric cars within the next two years in an effort to reduce transport emissions, according to energy management firm Schneider Electric. The finding was revealed as part of Schneider Electric’s third annual sustainability study, which also highlighted varying levels of progress across different industries. The company predicts that Australia will experience a significant increase in electric vehicle sales next year if fuel-efficiency standards are implemented to improve supply. This research follows the release of the Australian government’s National Electric Vehicle Strategy and a record-breaking number of electric car sales in June. Schneider Electric’s study, which surveyed over 500 executives from small, medium, and large businesses as well as industry groups, found that 51% of companies were likely or very likely to invest in low or zero-emission transport within the next two years. Additionally, 22% of businesses were allocating more funds to electric vehicles compared to two years ago. Schneider Electric home and distribution vice-president Chris Kerr stated that electric fleets are gaining momentum and businesses are aware of the necessary steps to be taken. However, Kerr noted that some businesses and industries are progressing faster in reducing transport emissions than others. The study found that medium-sized organizations were most likely to invest in electric transport, followed by small businesses, while large organizations were lagging behind by 11%. Manufacturing and construction firms were the most inclined to replace petrol and diesel vehicles with zero-emission models, at 68% and 62% respectively. On the other hand, healthcare and retail companies showed lower adoption rates at 43% and 48%. Kerr emphasized that the next challenge for these industries would be establishing adequate charging infrastructure and ensuring the availability of renewable energy for vehicles. He also mentioned that sourcing enough electric vehicles remains a challenge in Australia, but the introduction of a fuel-efficiency standard in federal parliament could encourage more imports of zero-emission vehicles and improve supply. Kerr believes that the growth of electric vehicle adoption in Australia has been surprisingly rapid and anticipates even more significant progress in the future. Electric vehicle sales in Australia have seen a substantial increase, accounting for 7.4% of total sales in the first half of 2023 compared to 3.8% in 2022. Battery-powered vehicles reached a record high of 8.8% of new car sales in June. The number of electric vehicle models available in Australia is expected to expand once the government introduces a fuel-efficiency standard that sets an emissions cap on automotive fleets. Transport Minister Catherine King aims to complete draft legislation by the end of 2023, followed by its introduction to parliament.
Company fleets are rapidly considering a switch to electric vehicles, fueling the demand for EVs
In recent years, there has been a notable shift in the transportation industry as an increasing number of companies are contemplating a switch to electric vehicles (EVs) for their fleets. This shift represents the growing acceptance and recognition of the significant benefits offered by EVs, not only in terms of environmental sustainability, but also from an operational and cost perspective.
One of the primary drivers behind this switch is the urgent need to address climate change and reduce greenhouse gas emissions. Companies are increasingly under pressure, both from governments and the public, to adopt more sustainable practices and reduce their carbon footprint. As the transportation sector is a major contributor to global emissions, transitioning to EVs can be a significant step towards achieving a greener and more sustainable future.
Moreover, with advancements in technology and a significant drop in the cost of battery production, electric vehicles have become more practical and cost-effective for companies. The initial investment may have been a deterrent in the past; however, the long-term benefits of switching to EVs are now outweighing the upfront costs. Companies are recognizing that while EVs may have a higher initial purchase price, they offer considerable savings over their lifetime due to lower maintenance and fuel costs.
The adoption of EVs within company fleets also brings operational benefits. Electric vehicles are known for their superior performance in terms of acceleration, torque, and overall driving experience. Companies are realizing that EVs can enhance their operational efficiency and provide a competitive edge. Additionally, the reduced noise pollution and improved air quality associated with EVs make them an attractive choice for companies operating in urban areas where emissions and pollution are major concerns.
The demand for EVs within company fleets is further being fueled by various government incentives and regulations. Many countries and regions are offering financial incentives, such as tax breaks or subsidies, to companies that adopt EVs. In addition, some areas are implementing regulations that require companies to have a certain percentage of electric vehicles in their fleets, further pushing companies towards this transition.
As a result of these various factors, both large multinational corporations and small businesses alike are reevaluating their vehicle fleet strategies and seriously considering the integration of electric vehicles into their operations. The automakers have also responded to this rising demand by increasing the production and availability of electric models, offering a wider variety of options to meet the diverse needs of companies.
With the global push for sustainability and the increasing attractiveness of EVs, the future for company fleets looks markedly electric. The potential environmental benefits, operational advantages, and cost savings associated with electric vehicles have contributed to the rapid rise in their adoption within company fleets. As the world moves towards a greener and more sustainable future, electric vehicles are poised to play a pivotal role in transforming the transportation landscape and shaping the way companies operate their fleets.