With rising fuel costs and the global response to reducing all forms of carbon emissions building momentum, fuel conversion (23%) remains a key challenge with EV supply, alongside purchase price and charging infrastructure concerns, according to a Teletrac Navman survey of more than 1,800 global fleet operators.
One-third (32%) of respondents said that the conversion to next generation fuels is one of their largest areas of expense (second to purchasing new vehicles).
Conversion is also high on the agenda for fleet owners due to concerns about their environmental impact. More than a third (41%) of those surveyed said environmental effects is their biggest concern about the current economic environment; outside of transitioning to next generation fuels — of which 30% were looking to transition to EVs in the next 12 months — maintenance of existing fleet continued to be largest expense for 39% of those surveyed.
“With supply chain issues continuing to impact EV vehicle availability and cost, some fleets are struggling to start the transition and are having to find ways to safely extend vehicle life through preventative maintenance and more conscientious use on the road,” says Mayank Sharma, head of global product management & UX. “However, those with the available capex to be early movers to EVs could gain a competitive advantage as they won't be exposed to any further rising petrol or diesel costs, they'll be reducing their environmental impact which is coming more into play in customer contracts and will likely benefit from government grants and subsidies that will later be removed.”
Overall, the Teletrac-Navman survey revealed that rising fuel costs (39%), disruption due to the impact of COVID-19 (32%), and supply chain pressure (31%), are the top challenges fleet operations face.
“The last 12 months have created new complexities for fleets, but fuel cost rises are the number one concern for operators globally,” says Alain Samaha, President & CEO of Teletrac Navman, in a news release. “As the cost per gallon of fuel spiked throughout last year, many operators looked to overcome the rising costs with driver behaviour programs and EV transition plans.”
Conducted across the UK, North America, ANZ, and LATAM, the business surveyed more than 1,800 fleet operators, to uncover the biggest challenges global fleets are facing, and how they are responding in a vastly changing and increasingly complex business environment. To explore more of the responses to the survey visit here.