The future scope of electric vehicles – it begins now

Electric vehicles (EV) are the future of transportation. They’re a key piece of the puzzle when it comes to improving environmental sustainability, and we’re therefore seeing the shift towards EVs and new technologies gain ground. This applies to commercial vehicles, such as fleets of LCVs, just as much as passenger cars.

A fleet management solution can help manage electric vehicle fleets smarter and more efficiently for the sake of the environment, but also for the sake of your budget. Beyond utilising electric vehicles for a sustainable future, the EV market can also help you simplify compliance with emissions regulations and reduce your operational costs—the best of both worlds. So, it’s high time we took further steps towards electrification.

Let’s dive into the ins and outs of the future scope of electric vehicles and why it’s worth your while to electrify your fleet.

The status quo and future trajectory

Currently, electric and hybrid vehicles still represent only a small proportion of the Australian market. However, this landscape is poised to change dramatically—we’re on the cusp of real change. 

For instance, EV sales in the first half of 2019 increased by 90% compared to the same period in 2018. This is especially encouraging given that overall vehicle sales fell by 8.4% during that time. Furthermore, the electrification of fleets is also picking up, with business fleets accounting for 63% of total EV sales in 2018. This upward trend demonstrates how electric vehicles are the future of transportation in Australia.

There are various reasons why the future scope of electric vehicles looks bright—not least the benefits they can bring to your fleet and business:

Benefits of fleet electrification

Environmental: An electric vehicle fleet reduces emissions and helps to tackle climate change. Showing a commitment to sustainability in this way has the knock-on effect of improving your brand reputation. It’s also a great way to comply with emissions regulations.

Economical: Although the purchase price may be higher for electric vehicles with new battery technology, the running costs are much lower than ICEs, making them more economical in the long run. 

Social and health: Electric vehicles produce less noise and are very comfortable to drive – for example, gear changes aren’t necessary. This helps improve the drive experience and reduce fatigue.

In addition to the advantages fast charging EVs bring to fleet managers, the measures that governments are implementing to encourage electrification further indicate that electric cars are the future.

Governmental emission reduction targets

Like a lot of countries in the world, Australia is committed to taking action against climate change and CO2 emissions. On a broad level, the Australian government has set an emission reduction target for 2030, like in Europe. This is to reduce greenhouse gas emissions to 26-28% below 2005 levels by 2030. The electric vehicle market can clearly play an important role in reaching this target, especially given the fact that Australia could eliminate 6% of its total greenhouse gas emissions if everyone drove battery electric vehicles with lithium-ion batteries (BEV) charged by renewable energy. As a result, the government is planning a national strategy for transitioning to electric vehicles and building charging infrastructures, which is expected to reduce emissions by up to 10 million tonnes by 2030.

These governmental commitments underline the importance of electric vehicles to a sustainable future with zero emissions. 

Tax benefits and purchase incentives

Not only does adopting electric vehicles bring many benefits for fleet managers and automakers, pivoting to an electric vehicle fleet is also being financially incentivised by the state. This comes in the form of two EV purchase incentives(1):

• Sponsored financing for EV purchases: EV buyers receive a 0.7% discount on financing purchases.

• Reduced registration costs: Some states or territories offer discounts on annual registration costs. For example, Victoria gives drivers of electric plug-in cars or plug-in hybrid electric vehicles a $100 discount, while EV owners in Australian Capital Territory receive a 20% discount.

Embracing the future scope of electric vehicles with Verizon Connect

Given that electric vehicles are the future of transportation, we’re committed to supporting you in managing electric vehicle fleets. Our existing fleet management solutions are already powerful tools at your disposal. Now, we’re launching various new features throughout 2023 to better support electric vehicle tracking and management in Reveal. These features are specially designed to help ease you into the adoption of electric vehicles in your fleet, meet your sustainability goals, and reduce costs.

The key features include:

• Fuel Type: Select “Battery Electric Vehicle” fuel type to help you distinguish your EVs from your ICEs (internal combustion engine vehicles).
• EV Icons: New icons to help you quickly identify your EVs on the Live Map, Reports, and Alerts.
• Mobile support: See your vehicles, EVs, and Asset location and status on the go with the Spotlight app.

Learn more about Verizon Connect solutions with our free Fleet Management Buyer's Guide.

Learn what sets Verizon Connect apart, and how local Aussie businesses benefit from partnering with us for fleet management solutions.

(1) Verizon Connect does not provide tax advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax advice. You should consult your own tax advisors to seek the proper advice.