ELECTRIC VEHICLES/EV CHARGING
CHARGED FOR SUCCESS: THE BUSINESS CASE FOR FLEET ELECTRIFICATION
W
hile the benefits of fleet electrification are often well understood by operational teams
close to the vehicles, translating that knowledge into a compelling argument for the boardroom is a different challenge – and it’s one that many fleet managers are yet to fully solve. Chief among the obstacles is a persistent myth: that electric fleets cost more to run than a fleet of combustion engine vehicles. This, however, is no longer true. Understanding how things are today, rather than where they stood even a few years ago, is now a commercial necessity. Fleet electrification, presented purely as a cost,
will face resistance. Presented as a strategic investment with a clear return profile, a predictable cost base, and a driver of business-wide improvements, and it becomes a much easier conversation. The data supports this approach – and increasingly, so does the experience of fleets that have already made the transition.
THE ECONOMICS NOW FAVOUR ELECTRIFICATION It is still more expensive to buy a new EV than an equivalent internal combustion engine (ICE) vehicle, but the gap is narrowing, falling significantly from around +50% in 2020 to nearer 20% in 2025. Manufacturers are also now committed to producing a wider range of cheaper electric models. But in a commercial environment, total cost of ownership is arguably more important, and the persistent assumption that EVs cost more to run than ICE vehicles has not held up to scrutiny for some time. Fuel is the most immediate saving. Electricity costs
significantly less per mile than petrol or diesel. Charging on a standard home or depot tariff typically costs around 8p per mile, compared with 13-17p per mile for a petrol or diesel vehicle. For fleets that charge overnight on off-peak tariffs or use on-site renewable energy, those savings compound further. A fleet running 50 vehicles covering an average of 20,000 miles
Fleet electrification is a strategic programme that, when correctly implemented, is a fundamental factor for business success. Natasha Fry, head of sales at Mer Fleet Services, explains
per year is looking at a material reduction in one of its largest variable costs. Maintenance is needed less often, and costs less.
Electric drivetrains have substantially fewer moving parts than combustion engines. There is no oil to change, no exhaust system to service, no timing belt to replace. Across a fleet, that translates to fewer vehicle-off-road days, lower servicing costs and more predictable maintenance schedules. For operations managers, that predictability is valuable. EV values have stabilised. Where depreciation has
historically been a concern with EVs, the market has matured. EVs are now as reliable as ICE vehicles and have lifespans that are roughly equivalent – and in some cases surpassing petrol vehicles. Battery warranties of up to eight years have helped stabilise residual values, and as demand for second-hand EVs continues to grow alongside the wider transition, fleet operators are finding that the exit value of their vehicles is increasingly competitive.
LOGISTICS AND OPERATIONS: THE CASE BEYOND COST Electric fleets also deliver a number of operational benefits that contribute to better business and competitive advantage. Energy management becomes an operational asset. In ICE fleets, start and end fuel levels are highly dependent on how the vehicles are driven, and whether a driver has remembered to stop for fuel. EV fleets, however, can start every shift at a known, consistent state of charge. It reduces lost driving time or diversions to fill up mid-route, increasing vehicle availability and on-time deliveries. Where vehicles do have to operate beyond the depot range, the UK’s public charging network continues to widen, in particular with the number of ultra-rapid chargers growing by 40% in the last year. Better fleet data for better business results. Data
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from electric vehicles is richer and more actionable than most operators realise until they are living it. State of charge, range, charging patterns, driver behaviour – all of this feeds into a clearer picture of how a fleet actually operates day to day. It’s a foundation for genuine route optimisation, smarter vehicle deployment and ultimately better decisions about where to invest to improve service delivery. Greater driver satisfaction improves driver retention. EVs are quieter, smoother to drive, and have been preferred for years by van drivers who spend significant time behind the wheel, and many of whom may also drive an EV at home. In a market where recruiting and retaining commercial drivers is a genuine operational challenge, the vehicle experience is not a trivial consideration.
EV TRANSITION IS A BUSINESS DECISION Fleet electrification is not a procurement decision to be made in isolation, it is a strategic programme that when correctly implemented is a fundamental factor for business success. Despite sensational news headlines that imply otherwise, the direction of travel towards electrification is clear. Policies continue to accelerate in the direction of electrification. For example, the Zero Emission Vehicle (ZEV) mandate requires manufacturers to sell a rising proportion of electric vehicles each year, while EV sales are growing every year – a 26% increase in 2025. So the question at the heart of your business case
shouldn’t be whether your business makes the transition – it is whether to lead or be led by it. Because while the rest of the market catches up, the businesses that have already made the switch are quietly building a competitive edge that is becoming increasingly difficult to close.
Mer Fleet Services
https://uk.mer.eco/
ENERGY & SUSTAINABILITY SOLUTIONS - Spring 2026 19
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