Fleet decision makers are seeking evidence amid slow adoption of battery electric vehicles
Escalent’s Fleet Advisory Hub™ for Fleet Brand Electrification report highlights concerns and challenges hindering mainstream battery electric vehicle adoption for fleets of all sizes
LIVONIA, MI, Nov. 16, 2023 (GLOBE NEWSWIRE) — While many headlines point to growing adoption of battery electric vehicles (BEV), traction remains slow in the commercial vehicle and fleet sector, with policymakers citing several reasons to be apprehensive. , including searching for manufacturers that demonstrate their ability to provide reliable products and easy-to-implement electrification solutions.
Surprisingly, vehicle brand is neither a primary motivator nor a barrier to considering battery-powered cars. Only 5% of fleet decision makers cite “brands offering BEVs” as the top three reasons they would consider BEVs, while 5% also cite it as a challenge or barrier to adoption. On the other hand, attributes that define brand reputation and support the brand promise – such as vehicle cost, quality/reliability/durability and performance – resonate with decision makers.
These are the latest findings from the latest Fleet Electrification Brand Landscape report from Escalent’s Fleet Advisory Hub™, a leading insights program designed to explore the needs, expectations and sentiments of commercial vehicle and fleet decision-makers. This report explores the views of nearly 1,000 fleet decision makers on manufacturer brand sentiment across four major fleet and commercial vehicle segments: light passenger, commercial vans, commercial vans, and medium/heavy duty vehicles.
Legacy brands like Ford, Chevrolet/GMC and Ram currently benefit from well-established relationships in the fleet sector, which may provide a short-term advantage to BEV consideration among fleet decision makers. However, established brands may face challenges from emerging startups – particularly Tesla, which already has a stronger foothold in retail than other startups, especially Rivian, which is performing strongly among those who are familiar with the brand and may It has now opened order books beyond its contract with Amazon.
Most importantly, with half of decision makers (51%) needing to prove that BEV technology works, fleet leaders are waiting for real-world, relevant, objective use cases that demonstrate the reliability and performance of BEVs so that BEVs can have a place in their future. Consideration groups.
“There is a need for a seamless journey, which means an end-to-end customer and ownership experience that proves that BEVs can meet business needs, are reliable, and are worth the long-term investment,” said Lukas Ludden, Insights Consultant and Head of the Fleet Advisory Hub. In Escaliente. “In order to gain traction with battery electric vehicles in the commercial vehicle market beyond early adopters, manufacturers and regulators must demonstrate that the transition is beneficial.”
While the study found that nearly a quarter (23%) of decision makers are incorporating battery electric vehicles into their fleet, and 40% believe that battery electric vehicles are the future, overall commercial vehicle market penetration is still at about 1%, which indicates that companies are integrating only a few battery electric vehicles at a time rather than replacing them on a large scale, resulting in less traction in the market than many expect.
Driving range, battery life, replacement costs, charging time, charging infrastructure and total cost of ownership are some of the most important areas for industry stakeholders to address to better meet the business needs of fleets, according to the study.
“These challenges are unacceptable to most fleet decision-makers. BEVs will not gain as much importance in the commercial vehicle and fleet sectors if these areas are not addressed by industry stakeholders,” Lowden added. “Early adopters are typically larger fleets.” Be willing and able to take risks as well as endure less than ideal experiences. However, fast adopters are less receptive to risk and have a poorer ownership experience, which is why they need more evidence. If they hear or have had negative experiences, they will choose not to adopt battery electric vehicles until they feel the problem areas have been corrected.
However, there are concepts that industry stakeholders should embrace that can help mitigate the risks of electric vehicle adoption that come with acquiring and owning traditional vehicles. Fleet decision makers say they are more likely to consider battery electric vehicles with pilot testing programs tailored to a company’s specific needs (52%), fleet-as-a-service initiatives (49%), or off-the-shelf solutions that provide full support for and Powering battery electric vehicles in commercial operations (46%).
As the automotive industry navigates this dynamic and unpredictable path toward electrification, Escalent’s Fleet Advisory Center provides indispensable insights to product manufacturers and service providers serving the commercial vehicle and fleet market. With nearly 12,000 fleets comprising over 1 million vehicles, it is one of the largest collections of commercial vehicle and fleet decision maker insights available in the market today.
To learn more, visit escalent.co.
About Fleet Advisory Center™
The reported findings come from Escalent’s 2023 Fleet Electrification Brand Landscape Report on the brand sentiment of decision makers at commercial vehicle and fleet manufacturers across the light passenger, commercial truck, commercial van and medium/heavy vehicle segments. These findings include a subset of commercial vehicle and fleet decision makers drawn from the Fleet Advisory Center population. Participants were recruited through an online panel of business decision makers and were interviewed online. Escalent will provide the exact wording of any survey question upon request.
Ishit is an award-winning data analytics and consulting firm specializing in industries facing disruption and business transformation. As a catalyst for progress for over 40 years, we accelerate growth by creating a seamless flow between primary, secondary, shared and internal business data, and providing consulting services from insights to execution. Our team numbers 2,000, following the acquisition of C Space and Hall & Partners in April 2023. Escalent is headquartered in Livonia, Michigan, with locations throughout the US, Australia, Canada, China, India, Ireland, the Philippines and Singapore. South Africa, the United Arab Emirates and the United Kingdom. Visit escalent.co Let’s see how we help shape the brands that reshape the world.
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