Future-proof your fleet
The effort to transition from fossil-fuel-powered passenger cars to electric vehicles (EVs) has been well documented, especially over the last few years. Consumers, aided by a rising tide of social awareness, government tax incentives, and the promise of widespread access to charging stations are embracing EVs in their quest for lower emissions, and a healthier planet.
With electric vehicle adoption projected to continue – EVs are expected to account for 45% of the automobile market by 2035 (1) – the commercial trucking industry is now undergoing a similar transformation mainly due to the damaging impact diesel trucks have on the environment.
Consider:
- In the United States, diesel-powered medium and heavy-duty vehicles (HDVs) account for 27% of transportation carbon dioxide emissions despite making up only 6% of the vehicles on the road. (2)
- Diesel trucks are significant producers of hazardous NOx emissions and air particulates, harmful pollutants that contribute to all kinds of adverse medical conditions, including asthma and respiratory illness. These pollutants have a particularly harsh impact on communities near major truck routes. (3)
In March 2024, the Environmental Protection Agency unveiled strict new emission standards for heavy-duty trucks manufactured between 2027 and 2032. The new regulations mean that companies and fleet owners must act now to comply and underscores the government’s commitment to getting more electric trucks on the road sooner rather than later.
Even before the EPA’s announcement, numerous fleets and companies had already embraced the idea of an electric fleet. In the U.S., sales of electric heavy-duty vehicles surged by 53% in the first half of 2023 compared to 2022, with leading global brands spearheading the charge. (4)
For instance:
- Amazon introduced its first electric delivery vans in 2022 and now has more than 10,000 across the US
- FedEx has been using electric trucks since the early 2000s and plans for its entire parcel pickup and delivery fleet to be electric with zero-tailpipe emissions by 2040. (5)
- Frito Lay unveiled its first 100% electric truck fleet in 2023 in Charlotte, NC, with a goal of having 700 electric trucks making deliveries by the end of 2023
While government regulations and corporate citizenship pressures are driving the electric movement in commercial trucking, so too is profitability. What might come as a surprise to many is that research shows that converting a truck fleet from diesel to electric isn’t just good for the planet; it’s also good for business.
Putting a Charge Into Your Bottom Line With an Electric Fleet
Despite a higher initial sticker price, a variety of factors make electric heavy-duty trucks a savvier investment than their diesel-fueled counterparts – for today and especially for the future.
Some of the advantages, many of which mirror those of passenger EVs, include the following:
- Lower Fuel Costs
As outlined in a report by the International Council on Clean Transportation (ICCT), electric trucks offer significantly lower fuel costs than diesel—some reports of 50% savings — especially since electricity prices are more stable than volatile diesel prices. (6)
- Lower Maintenance Costs
Much like electric cars, electric heavy-duty trucks have simplified drivetrains, with far fewer parts than a diesel truck. This translates to less maintenance and downtime over the truck’s lifetime.
- The Declining Price of Batteries
Advancements in technology and production efficiency have reduced the price of the batteries needed to power long-haul trucks and tractor-trailers. Whereas the cost of batteries used to be a significant factor in the sticker price difference between electric and diesel HDVs, the lower battery price will continue to significantly narrow the money-down gap. (7)
- Government Incentives
Policies like the Inflation Reduction Act and Bipartisan Infrastructure Law offer fleet owners financial subsidies and tax breaks, making the transition to electric trucks even more financially palatable and cost-effective.
- Lower Total Cost of Ownership
Perhaps the most compelling financial argument for going electric is the total cost of ownership (TCO). TCO goes beyond just the initial sticker price and considers the entire range of expenses associated with owning and maintaining a vehicle. Expenses like fuel and expected maintenance are important variables among many.
A comprehensive analysis by the North American Council for Freight Efficiency (NACFE) found that electric trucks can achieve cost parity with diesel trucks within a few years of operation, depending on factors such as electricity rates, incentives, and maintenance costs. (8)
The EPA, while announcing their new heavy-duty truck emissions policy, calculated that new electric trucks would save operators $3.5 billion in fuel and other costs from 2027 to 2032, paying for themselves in two to four years. (9)
Making Electrification Work for The Long Haul.
The transition to electric represents a win-win for fleet owners and companies, offering the opportunity to be more socially responsible and profitable. In business, it’s not often that the two align so well.
With lower fuel and maintenance costs, declining battery prices, and beneficial government subsidies, electrification presents a unique opportunity to create a greener and cleaner planet while maximizing economic returns. Despite a higher purchasing price, electric trucks offer a lower overall total cost of ownership. This explains why several of the world’s most recognizable brands are already enjoying the bottom-line benefits of electric trucks.
As corporate America is compelled to comply with stricter emission standards by 2027, commercial fleet owners should be poised to lead the charge toward a healthier and more prosperous transportation future. Partnering with a company that can provide the charging infrastructure and solutions that meet the daily needs of an active electric heavy-duty fleet is critical. Now’s the time for fleet owners to get ahead of the curve – and the competition – with an electrified fleet.
In response to the changing landscape in the commercial trucking industry, Kempower can help identify and install the infrastructure you need now and as your fleet grows.
Written by
Joshua Mueller
Head Sales Manager, Fleet & OEM
