Fleet owners operating both electric vehicles (EVs) and their gas counterparts have higher levels of satisfaction with their EVs, according to a new report from Cox Automotive.
The report, Future of Fleets: Path to EV Adoption, found EVs bring higher scores among fleet owners in key metrics such as “overall satisfaction,” “cost of ownership” and “vehicle usage and capabilities” as compared with vehicles powered by internal-combustion engines (ICE).
Conducted in Q1 2024, the survey collected data from fleet decision-makers in various regions and across differing fleet sizes. Data shows that 14 percent of fleets presently operate EVs, with a significant trend toward EV adoption expected in the next five years.
EV Expansion Expected
Zo Rahim, senior analyst of Research and Market Intelligence at Cox Automotive, offered the survey showed the electric-vehicle story isn’t just the retail story.
“In many ways, electric vehicles can be an ideal solution for many fleet operations, which often have set routes of known distances, vehicles that routinely overnight in the same location, and operations that prioritize the cost of ownership,” said Rahim in a press statement with the report. “The fleet business is significant in the U.S. market, and we expect the EV share of the fleet market to expand in the coming years.”
Among fleet operators who run both EVs have the highest “overall satisfaction” and “total costs of ownership” satisfaction scores. When asked about the “ability to complete the business purpose” and “vehicle usage and capability,” EV satisfaction scores were higher than ICE scores, although approximately four in 10 respondents judged them to be about the same.
Key Takeaways
In all, the top takeaways of the report include:
- Most fleets expect to own an EV in the next five years, with the greatest adoption coming from those that already own and operate EVs.
- Current factors around cost are reasons many fleets are not considering an EV. However, fleet EV incentive awareness is high and viewed favorably compared to the retail market.
- Faster charge times and longer driving range is needed to improve EV consideration. Charging station availability is a key concern for many fleets.
- EVs see maintenance services—including emergency service–performed slightly more often than ICE vehicles.
- Generally speaking, fleet owners are more satisfied with EVs, including in total cost of ownership and capabilities.
The study reports that fleet operators that currently employ EV have a 90 percent likelihood of acquiring additional EVs in the next acquisition cycle. Among the total sample of fleets owners (those with and without EVs), 87 percent expect EVs to be added to their fleets in the next five years.
Cost Concerns
Among operators currently managing EVs, those with the most experience with EVs expect more rapid growth in the next five years—58 percent for those EV fleet owners compared with 43 percent who do not have EVs.
One similarity between fleet and retail consumers—acquisition cost is a primary concern particularly for those considering EVs. For EV owners, their concerns are more about the lack of charging stations and supporting infrastructure.
Low mileage range and battery replacement costs were other reported barriers to further adoption.
EV Maintenance Frequency Higher
When it comes to maintenance and repairs, fleet operators that employ both EVs and ICE vehicles are more satisfied with their EV vehicles. Respondents indicated EVs have a slightly higher frequency of service compared to ICE vehicles, but nearly half of EV fleet owners (48 percent) are more satisfied with their EV products.
Comparatively, 27 percent of owners are more satisfied with their ICE products when it comes to service; 24 percent see no difference in satisfaction level between ICE and EV products.
Wear-and-tear services such as tires and brakes are the most regularly serviced items among EV fleet owners. Emergency services are relatively low overall across all products but higher among EVs compared to gasoline and diesel vehicles, according to the survey.
“It is a good sign that overall satisfaction with EV in the fleet business is relatively high,” added Rahim. “There are certainly challenges in shifting a business away from traditional ICE powertrains, but if owners and operators are generally satisfied with the outcome and see tangible savings, EV adoption could certainly accelerate through the end of the decade.”
