In the US, more than 1.4 million plug-in EVs were sold in 2023, 50% more than 2022.
People and fleets are rapidly switching internal combustion engine (ICE) vehicles for electric vehicles (EVs).
In this article, we’re going to look at some of the main reasons for this shift and whether fleet managers should consider electrifying their fleet sooner rather than later.
Benefits of Electric Vehicles
Lower Fuel Costs
Unlike ICE vehicles, which rely on gasoline or diesel – both of which fluctuate in price – EVs run on electricity, which tend to be more stable in terms of price.
With an EV, you’re looking at savings of around $0.08 mile compared to an ICE. When you multiply this by the thousands of miles a fleet vehicle drives each year, those savings add up fast.
You can also use smart charging software to optimize when and how your EVs charge. The software adapts your charging schedule to focus on off-peak hours when electricity rates are lower.
Reduced Environmental Impact
EVs have zero tailpipe emissions which is great for air quality, especially in cities and large towns. It means fewer harmful pollutants in the air, such as nitrogen oxides and particulate matter.
In terms of climate change, EVs reduce greenhouse gas emissions compared to ICE vehicles that burn fossil fuels. An average fleet avoids 5.7 tonnes of CO2 emissions over the lifespan of an EV, compared to an ICE.
Many corporate sustainability strategies include a commitment to carbon footprint reduction. Electrifying your fleet can help meet these sustainability goals. Using fleet management software, you can track and report these environmental benefits, with real-time data on emissions reduction and efficiency gains.
Lower Maintenance and Repair Costs
EVs have far fewer moving parts than ICEs, which means no oil changes or gear repairs. You can also run predictive maintenance software for your EV, which monitors your fleet in real-time and flags up when problems might be about to occur.
Predicting maintenance needs and proactively addressing them leads to less vehicle downtime and reduced spending on emergency repairs.
Advantages of Internal Combustion Engines
Widespread Availability of Fuel
It’s easy to find gasoline and diesel, wherever you are in the world. The established fuel supply chain is strong with a mature infrastructure of gas stations in place to support it.
Grid constraints in the energy infrastructure means EV fleet charging is challenging to set up in some areas. However, EV fleet management systems help to overcome these challenges by optimizing charging schedules and balancing the load during peak hours. The software can also integrate with renewable energy sources such as solar or wind to further reduce grid reliance.
Longer Driving Range
With a full tank of gas, ICE vehicles can cover hundreds of miles, making them ideal for long-distance travel without the need to frequently stop.
However, EVs are rapidly closing the gap. Battery technology has moved on in recent years and modern EVs offer ranges that were unthinkable just a few years ago. Some models can cover 450 miles or more on a single charge.
Another way to maximize range is to use range management tools integrated into fleet software. These tools take the vehicle's current charge into account, the distance to the next charging station, and real-time traffic conditions to optimize route planning.
Established Infrastructure
Whether in a city or remote highway, finding a gas station is rarely a problem. This makes ICE vehicles convenient for drivers who need to refuel quickly and continue their journey.
On the other hand, EV infrastructure is rapidly expanding due to government and private sector investment. Many countries are prioritizing EV charging network development as part of their sustainability goals. The private sector is also helping, with companies like Tesla, ChargePoint, and others leading the way in charging station provision.
Fleet management software helps you plan routes that take advantage of existing charging stations, as well as forecasting future needs. This means fleet managers can strategically plan where to locate charging stations for their fleet, ensuring that EVs are always within range of a charge.
Comparing Efficiency and Performance
Energy Conversion and Efficiency
The electric drive system in an EV typically loses only about 15% to 20% of the energy it uses, whereas gasoline engines lose a whopping 64% to 75% of their energy. This is due to the fact that EVs convert a much higher percentage of their battery energy into actual movement, whereas ICEs lose a lot of energy as friction and heat.
Another big plus for EVs is regenerative braking. This technology allows EVs to capture energy that would normally be lost during braking and reuse it, further boosting their overall efficiency. ICEs can’t do this, which means all that energy is simply wasted as heat during braking.
Fleet software helps to drive up efficiency even further by analyzing a lot of data in real-time, from state of charge to driving habits like speed, braking patterns, and idle times. The software can suggest routes that minimize energy consumption or recommend driving behaviors that extend battery life.
Acceleration and Torque
Unlike ICE vehicles, which need to rev up to reach peak torque, EVs hit full torque instantly from a standstill. This is ideal in scenarios where quick acceleration is key, like merging onto highways or driving through stop-and-go city traffic.
What’s even more impressive is that electric motors maintain high torque across a much broader RPM range compared to ICE vehicles. For example, even though the peak torque numbers might be similar between an EV like the BMW i4 e40 and a high-performance ICE car like the BMW 440i, the EV often feels more powerful across a range of speeds.
Fleet management systems analyze data to optimize torque. The systems understand specific driving conditions and habits, and ensure that each fleet vehicle delivers its best performance, by optimizing routes or adjusting driving patterns.
Are Electric Motors Better Than ICE?
Electric motors offer several benefits over ICEs in many scenarios.
- Smoother, More Responsive Acceleration: With instant torque from standstill, EVs respond immediately to driver input. This eliminates the lag or hesitation of ICE vehicles, which need to build up RPMs to reach peak torque.
- Reduced Wear and Tear: Electric motors have fewer moving parts compared to ICE engines, which means less wear and tear over time. This reduces the likelihood of mechanical failures and maintenance needs. Engine, gear, and exhaust components in ICE vehicles are more complex and prone to wear.
- Performance Improvement: You can continuously assess and improve EV performance through data capture. Modern fleet management systems monitor how the electric motor is performing, analyze driving data, and suggest improvements to extend the life of the vehicle. This is harder to achieve in ICE vehicles with less sophisticated on-board computers.
Noise and Vibration Levels
Research into EV noise levels shows that when running at low speeds (below 30 km/h), EVs are 4-5 dB less noisy than similar ICE vehicles at constant speed. During deceleration by engine braking, EVs are 2-4 dB less noisy than ICEs.
At higher speeds (above 30-50 km/h), the difference in noise levels becomes less significant as tire/road noise becomes dominant for both types of vehicles.
Since there are fewer moving parts and no combustion, the amount of vibration in EVs is drastically reduced. This adds to ride comfort and causes less wear and tear of vehicle components, increasing longevity.
Will Electric Vehicles Last Longer Than ICE?
In general, yes. EV battery longevity has improved in recent years, with many modern EVs expected to surpass 200,000 miles before the battery needs to be replaced. Most automakers offer warranties of around 8 years or 100,000 miles, but real-world data suggests that many EVs can go well beyond this.
For example, some Tesla models have shown that they retain over 70% of their battery capacity even after 150,000 to 200,000 miles. With advancements in battery technology and improved battery management systems, it's likely that EVs will continue to achieve even greater mileage.
Fleet software monitors the health of your EV batteries in real-time, keeping an eye on factors such as charge cycles and temperature, kind of like a health tracker for your fleet. You can use it to avoid full charges and discharges, which degrade the battery faster, helping extend the life of each EV in your fleet.
Considerations for Cost and Affordability
Upfront Purchase Price
The upfront purchase price of an EV is higher than an ICE, but it is shrinking over time. A report from June 2024 revealed that the upfront cost of an EV is around 12% more than an ICE. The gap appears to be closing over time, which means it could be level within a few years.
However, the payback period – the time it takes for savings from lower fuel and maintenance to outweigh the higher upfront cost is less than one year for 30% of the EVs in the report. Another 25% of the vehicles could achieve payback within 2 ½ years or less.
This means the TCO is lower for EVs and most EV owners start to save money within four years of ownership. Fleet management software makes it even quicker, as it optimizes energy usage.
Operating and Maintenance Expenses
This is where EVs have a clear advantage over ICEs. First off, EVs have much lower operating costs, as electricity is cheaper than gasoline or diesel when you factor in off-peak charging.
Maintenance is another area where EVs shine. There’s less to go wrong with an EV as they have simpler mechanical systems. With the help of predictive maintenance software, you can monitor EVs in real-time and see when parts need servicing. This keeps your cars on the road and costs low.
Government Incentives and Tax Credits
The great thing about EV fleets is that there are a lot of incentives available at the moment to reduce the upfront cost. Below you’ll find an outline of the main incentives.
Federal Tax Incentives
The Inflation Reduction Act (IRA) offers a 6% federal tax credit for each EV charger you install, with a maximum credit of $100,000 per charger through 2032. This cuts the upfront cost of setting up EV charging infrastructure, making it easier to start seeing a return on your investment sooner. This credit is ideal for large-scale installations, such as bus depots or logistics hubs.
State and Local Grants
Depending on your location, state and local governments often provide additional grants and incentives that can further lower the initial costs. These are great if you’re installing chargers in underserved areas or for public transit fleets. Stacking these local incentives with federal tax credits, helps reduce the total cost of your project, making it more financially feasible.
Fleet-Specific Funding
If you're considering electrifying a public transit or heavy-duty truck fleet, there are specific grants available to help cover these costs. Additionally, incorporating smart charging systems that manage energy demand efficiently might qualify you for further rebates, which lower your ongoing operational expenses.
Maximizing Financial Benefits
The U.S. Department of Energy’s Alternative Fuels Data Center is a great resource for finding incentives and grants you might qualify for.
Make the Switch to EVs More Profitable with Ampcontrol
Electrifying your fleet is a big decision. There are upfront costs of the vehicles and charging infrastructure to consider. If you want to maximize your ROI, smart charging software like Ampcontrol can help.
It optimizes your charging schedules to take advantage of low-cost energy, cutting your electricity bills. Integrating telematics and fleet management systems, takes things to the next level, helping you minimize downtime and keep your fleet running on time and optimally.
Ampcontrol also avoids costly peak demand charges by managing the load across multiple charging stations. This load balancing prevents potential grid overloads, which might lead to costly penalties.
See what Ampcontrol can do for your fleet efficiency – book a demo today.
