WEX Inc.

09/18/2024 | Press release | Distributed by Public on 09/18/2024 00:07

Survey: how New Zealand is navigating the transition to commercial mixed-energy fleets

We can expect more mixed-energy fleets on the roads as they're projected to increase over the next few years. A recent study by Frost & Sullivan, commissioned by WEX, indicates a significant rise in mixed-energy fleets as commercial EV adoption accelerates. In fact, according to the survey, 80% of fleet operators who already have a mix of internal combustion engine (ICE) and electric vehicles (EVs) plan to have at least 25% of their fleet be electric by 2030. Nearly 50% anticipate that EVs will make up half or more of their fleet by then.

The shift is driven by a growing emphasis on sustainability. As Carlos Carriedo, Chief Operating Officer, Americas Payments & Mobility at WEX said: "Decarbonization has become a top priority for organizations of all sizes and transitioning towards mixed-energy fleets is one effective way to achieve that. Fleet managers aren't debating if they should go electric, they're figuring out the best way to integrate EVs and internal combustion engine (ICE) vehicles."

The benefits of incorporating EVs into commercial fleets are clear - but the transition takes time. EV adoption can align with environmental goals, meet public and policy demands for zero-emission transportation, and appeal to eco-conscious customers. However, the path to electrification isn't without its challenges. High upfront costs, infrastructure concerns, and varying adoption rates across companies and governments all play a role.

To better understand the commercial EV adoption landscape, the researchers surveyed over 500 commercial mixed-energy fleet operators (ranging in size from 2 to 500+, with at least 1 EV in the inventory) across Europe, North America, and Asia-Pacific. You can read more about what's happening in New Zealand further below.

The findings highlight several key trends driving the shift to mixed-energy fleets:

  • Decarbonization is the key driver of the transition: 70% of respondents say it is an "important" or "cornerstone" component of their business strategy, and only 3% are not considering decarbonization at all. This underscores its importance to organizations' strategies for cost savings, sustainability, and brand image.
  • Operational efficiency is paramount during the transition: Despite electrification challenges like high upfront costs (64%), 50% of surveyed organizations have already invested in charging infrastructure.
  • Streamlining charging and payments is crucial: Most organizations (78%) have on-site charging, but charging en route and at home are also common. The ability to use the same payment options for both ICE and EVs is a top priority.
  • Smart digital solutions could help future-proof fleets: Over half of the respondents (58%) struggle with route planning, while 49% struggle to collect data and 40% face challenges integrating fleet management software for ICE vehicles and EVs.

The takeaway? The transition to mixed-energy fleets is well underway. While challenges to adopting EVs remain, the benefits are clear and organizations are actively seeking solutions to streamline the process.

Specific insights for New Zealand

Here's a look at how surveyed organizations in New Zealand (60) reported navigating the transition to mixed-energy fleets.

  • Organisations are driven to go green mainly by brand image (79%), followed closely by a genuine commitment to sustainability (74%). Saving money and meeting market demands are also factors, but reputation seems to be the primary motivator in New Zealand decarbonization efforts.
  • You won't find many commercial fleets charging in your neighborhood - only 12% have drivers charging up at home (the lowest utilization for any market). Fleet operators prefer to keep things centralized, as the vast majority (75%) use their own charging hubs or in-yard facilities.
  • 85% of New Zealand fleet operators see public charging as the most cost-effective option, even though they admit the inconsistent charging speeds can be problematic.
  • Though route planning for mixed-energy fleets is a common problem for all market operators, the Kiwis seem to have figured out the software integration side of it. Fewer than a third of fleet operators said it's challenging to juggle different vendors or software systems, both common pain points cited in the research.
  • For over half of New Zealand operators (55%), transaction security is paramount when it comes to payments. They also value real-time account management and 24/7 customer service.

Read the press release announcing the report's launch.

Dig into insights from other markets:

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