Transitioning to EV Fleets: 9 Things Australian Businesses Need to Know

Electric vehicles (EVs) are fast becoming a common sight on Australian roads. It’s not just a trend driven by environmental concerns; businesses are seeing the real-world benefits of integrating EVs into their operations.

From potential long-term cost savings to aligning with sustainability goals and preparing for future regulatory changes, there’s a compelling case for going electric. 

If you’re a business leader considering the transition to EVs, or if you’re in the early stages of fleet planning and weighing the electric option, this guide provides a comprehensive look into the why, what, and how of EV fleet management in Australia.

The Best Time to Transition to EVs 

There was a time when electric vehicles (EVs) felt like an exclusive item on a tech enthusiast’s wishlist. Not anymore. The landscape has evolved, making EVs more accessible and financially sensible for businesses. But when exactly is the right time to transition? Here are some factors to weigh:

• Cost-Efficiency: As EV technology improves, prices are dropping, while their performance is on the rise. Consider the long-term cost benefits, from fuel savings to potential tax incentives and reduced maintenance expenses.

• Environmental Commitment: If your business is looking to bolster its sustainability credentials, transitioning to EVs is a clear step forward. It’s a tangible way to showcase commitment to reducing carbon emissions and embracing green initiatives.

• Infrastructure Availability in Australia: Electric vehicle users now have nearly 2,400 public charging spots to choose from. A recent study by the Australian Electric Vehicle Council (EVC) highlighted significant growth in 2022, with charging stations jumping from 1,614 to 2,392. This increase is mirrored in the rise of individual charging plugs, which surged from 3,413 to 4,943.
• Regulatory Environment: With governments worldwide pushing for greener transportation, regulations favouring EVs (and penalising traditional fuels) are on the horizon. Being ahead of the curve can position your business advantageously.

• Brand Image & Public Perception: The public’s growing awareness of environmental issues means businesses embracing eco-friendly practices often enjoy a more positive brand image. Transitioning to EVs can be a key differentiator in the marketplace.

Given these considerations, it’s evident that for many businesses, the “right” time to consider going electric might just be now.

Industries Best Suited for EVs 

The shift to electric vehicles (EVs) isn’t merely about being on-trend; it’s about practicality and aligning with industry needs. While almost any industry can benefit in some way, certain sectors are perfectly poised to harness the full potential of EVs:

Service-Oriented Businesses

• Local Operations: Businesses like plumbers, electricians, or home services that operate within city or town limits can capitalise on EVs’ efficiency in short, frequent trips.
• Lower Maintenance: With fewer moving parts than traditional vehicles, service providers can benefit from reduced downtime and lower maintenance costs.

Delivery Businesses

• E-commerce Surge: With online shopping at an all-time high, delivery vans making short, regular trips can see substantial savings over time.
• Eco Credentials: Position your delivery business as green and sustainable, appealing to a growing segment of eco-conscious consumers.

Sales Professionals

• Urban Mobility: For those darting from one client meeting to another within cities, EVs offer smooth, quiet rides and efficient city driving.
• Branding: Beyond just transportation, an EV can serve as a branding tool, showcasing forward-thinking and eco-responsibility to prospective clients.

If your business model resonates with any of the above, or even if you’re just starting to see the intersection of EVs with your industry, now’s a prime time to consider how going electric might drive you ahead of the competition.

Australia’s EV Scene: What’s Everyone Driving?

Wondering what everyone’s driving in Australia? Here are the most popular EVs in Australia. 

Top 10 best-selling electric vehicles in July 2023

Rank	Make and Model	Sales (July 2023)	Sales (YTD 23)
1	Tesla Model Y	3330	17,332
2	BYD Atto 3	1005	7201
3	Tesla Model 3	604	12,179
4	Polestar 2	306	1453
5	MG ZS EV	234	2021
6	Kia EV6	167	702
7	Volvo C40	96	781
8	Cupra Born	86	260
9	Hyundai Ioniq 5	78	526
10	Mercedes-Benz EQB	73	380

The Business Benefits of Going Electric 

While the sleek and silent drive of an electric vehicle (EV) does turn heads, there’s a lot more under the hood that makes EVs an enticing option for businesses:

• Cost Efficiency in the Long Haul: While the upfront cost might be a pinch, over time, businesses often find that EVs can be friendlier to the wallet. Think about it: fewer parts to replace, no fuel stops, and often lower maintenance costs. The savings stack up over the years.

• Sporting Those Green Credentials: In an age where sustainability isn’t just a buzzword but a genuine concern, having an EV fleet can set you apart. It says, “We care about our environment, and we’re taking actionable steps.”

• Tax Incentives & Breaks: Many governments, including Australia’s, are offering businesses attractive tax incentives to go green. 

• Boosted Brand Image: In today’s marketplace, where reputation matters, driving electric can send a powerful message to customers and partners alike. It speaks volumes about a company’s forward-thinking approach and commitment to innovation.

• Employee Satisfaction: Don’t underestimate the feel-good factor! Employees appreciate working for companies that value sustainability. Plus, who wouldn’t love driving around in a cutting-edge vehicle?

Charging Expenses: How it Works with EV Charging 

The trusty fuel card, a staple in many businesses, is evolving. As the tide turns towards EVs, traditional fuel companies are recognising the need to pivot. 

The emerging solution? EV charge cards. These cards function similarly to their fuel-based predecessors but with a focus on EV charging. They offer flexibility, allowing drivers to charge both on the road at various charging stations and at home. 

Additionally, they streamline payment and reporting, just as fuel cards did for petrol and diesel expenses. 

Leading fuel companies are actively developing and integrating these systems, ensuring they remain relevant and effective in an EV-dominated landscape.

Here’s how the Australian landscape is currently looking: 

Shell Card

The Shell Card, once exclusively known for fuel payments, is evolving to embrace the green shift in transportation. Shell has expanded the capabilities of their card to cater to EV drivers. 

Now, alongside traditional fuel purchases, the Shell Card can be used at a vast network of EV charging stations. This means drivers with electric vehicles can conveniently charge up using the same trusted card, streamlining the payment process. 

WEX Motorpass

WEX offers a comprehensive solution for businesses transitioning to electric vehicles (EVs). With their EV charge cards, businesses can conveniently charge on the go at an expanding network or approve home charging sessions with direct driver reimbursements. 

Their unified payment system allows businesses to handle both charging and fuel expenses under one credit line. 

The EV Fleet Converter tool aids in decision-making, suggesting which vehicles to transition and estimating potential savings. 

On-Site Charger: Yay or Nay?

One big question often pops up: “Do we invest in an on-site charger?” Let’s break it down:

• Charging Speed: Just as you wouldn’t enjoy waiting hours for your morning coffee, your fleet doesn’t want to be idling too long. Chargers come in various speeds. While some give a quick jolt to get you moving, others offer a slower, overnight charge. Consider how quickly you need your vehicles back on the road.

• Cost Implications: Chargers aren’t a one-size-fits-all affair. From basic units to high-end, feature-packed ones, there’s a wide price range. Factor in not just the initial cost but also the long-term savings. Remember, time saved is money earned!

• Space & Setup: Got a sprawling space or operating in a tight urban nook? Charger sizes vary, and so does their setup complexity. You’ll want something that fits snugly without turning your parking area into an obstacle course.

• Future Proofing: As tempting as it is to look for a quick fix, think long-term. Will your chosen charger adapt as your fleet grows or as technology evolves? Opting for a scalable solution now might save a lot of future hassle.

In essence, while having an in-house charger can be great, it’s essential to choose one that aligns with your business needs. So, yay for the charger, but make it the right one!

Post-Switch Challenges: What to Watch Out For

Adopting EVs is fantastic, but it’s not without its hitches. Training staff, keeping an eye on energy usage, and ensuring infrastructure is on point are some areas to keep in mind.

• Training Staff: While EVs might be simpler to operate, they’re a different beast from their petrol counterparts. Your team might need a crash course (figuratively, of course) on how to handle, charge, and maintain these vehicles.

• Keeping Tabs on Energy: With a fleet of EVs, your electricity bill’s going to feel different. It’s crucial to monitor usage patterns and consider peak and off-peak charging times to get the best bang for your buck.

• Infrastructure Integration: Sure, you’ve got the cars, but do you have ample charging points? And are they fast enough for your needs? If your business often requires quick turnarounds, waiting hours for a full charge might not be on the cards.

• Maintenance: While EVs generally have fewer parts to worry about, when something does go awry, it can be a tad more complex. Ensure you have access to skilled technicians and the right parts.

• Range Realities: Not all EVs are created equal. While some can cover vast distances on a single charge, others might need more frequent juice-ups. It’s vital to select vehicles that match your business’s operational range.

In a nutshell, while EVs are undeniably the future and packed with perks, it’s essential to stay sharp and address these challenges head-on. With a bit of prep and foresight, you’ll be cruising smoothly in no time.

Tax Incentives by State

The electric vehicle buzz in Australia is getting louder. Back in 2022, EVs made up just 3% of new car sales. Fast forward to the first half of 2023, and they’ve more than doubled that, zooming to a 7.4% market share.

With a national push towards cleaner skies, here’s how Aussie governments are revving up incentives to steer buyers towards electric rides.

Jurisdiction	Incentive/Rebate	Details
Federal	Luxury Car Tax (LCT) Threshold	$76,950 for most cars; $89,332 for fuel-efficient vehicles (including ZEVs)
	Customs Duties	Removed for BEVs, PHEVs, FCEVs below LCT threshold (except vehicles from Russia and Belarus: 35% duty)
	Electric Car Discount Bill 2022	Exempts vehicles below LCT threshold from Fringe Benefits Tax (FBT)
New South Wales	EV Rebate	$3,000 for first 25,000 new BEVs & FCEVs; specific categories apply
	Stamp Duty	Exemption for EVs under $78,000
Australian Capital Territory	Registration	Two years free for new/used zero emissions vehicles till June 30, 2024
	Stamp Duty	Exemption for new zero emissions vehicles
Victoria	EV Rebate	$3,000 for new EVs < $68,740 (program ended June 30, 2023)
	Stamp Duty	Exempt from luxury rates; flat rate applies
	Registration	$100 annual discount on ZEVs & some plug-in hybrids
Queensland	EV Rebate	$6,000 for new EVs < $68,000; Businesses may get $3,000
	Stamp Duty	33% discount for electric & hybrid vehicles
South Australia	EV Rebate & Registration	$3,000 rebate + 3 years free registration for select vehicles < $68,750
Western Australia	EV Rebate	$3,500 for first 10,000 buyers of new ZEVs < $70,000
Tasmania	Stamp Duty & Registration	Tasmania currently has no electric vehicle uptake incentives in place.Waiver for all new/used EVs till June 30, 2023
Northern Territory	Stamp Duty & Registration	$1,500 discount on stamp duty + free registration for BEVs and PHEVs
	EV Charger Incentive	Up to $2,500 for charger installation till June 30, 2024

Fleet Management Software 

The key to an efficient EV fleet? Smart management. There are plenty of software solutions that help you track, manage, and optimise your electric fleet’s charging needs.

• Actionable Data: Software provides a platform to track and monitor your fleet and assets, giving you a clear overview of operations.

• Safety: It monitors driving patterns, identifying potentially risky behaviours. This helps in promoting safer driving practices.

• Efficiency: By analysing routes and vehicle utilisation, the software aids in enhancing productivity and reducing unnecessary costs.

• Compliance: With changing regulations in the transport sector, the software ensures you remain compliant, updating you on important regulations.

• Security: Protecting both vehicles and drivers, it reduces risks associated with theft or misuse.

• Sustainability: Leveraging telematics technology, it offers solutions to reduce carbon emissions, pushing towards a greener fleet operation.

The Best EV Fleet Management Software 

Samsara

• Best For: Real-time tracking and analytics
• Features: Real-time GPS tracking, route optimization, fuel usage monitoring, safety tracking, and comprehensive reporting
• Industries: Transportation, food and beverage, construction, and more.

Geotab

• Best For: Customization and strong analytics
• Features: Vehicle tracking, engine data, battery health, fuel usage, and safety analytics
• Industries: Delivery, utilities, government, and more.

Verizon Connect

• Best For: Large fleets and comprehensive solutions
• Features: Real-time tracking, ELD compliance, fuel monitoring, vehicle diagnostics, and safety analytics
• Industries: Almost all, including agriculture, construction, and delivery services.

Teletrac Navman

• Best For: Compliance and safety features
• Features: Real-time tracking, fuel management, safety analytics, and compliance management
• Industries: Construction, transportation, utilities, and more.

Fleet Complete

• Best For: Small to mid-sized businesses
• Features: Real-time tracking, asset tracking, dispatching, and reporting
• Industries: Delivery, field service, construction, and more.

Mix Telematics

• Best For: Safety and compliance
• Features: Real-time tracking, driver behaviour, fuel management, compliance management
• Industries: Oil and gas, construction, logistics, and more.

Ready to Shift Gears to an EV Fleet? We’re Here to Guide You!

Navigating the EV landscape might seem daunting, but with us by your side, it’s a smooth ride all the way. 

From keeping your vehicles charged and road-ready to simplifying your reporting with EV charge cards, we’ve got you covered. Make expensing a breeze and ensure your fleet’s always powered up. 

Don’t just follow the trend – lead it. Reach out today and let’s take the journey together!

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