Why fleets, dealers, OEMs need EVs in their businesses

Why fleets, dealers, OEMs need EVs in their businesses

Forty percent of all drivers plan to eventually purchase an EV – and younger drivers are more likely to be interested.

The rise of electric vehicles (EVs) is one of the hottest topics in the automotive industry and larger mainstream discourse right now. Many companies have already converted, or are looking to convert, their existing fleets to EVs – but with updates and changes almost daily, fleet managers, dealerships and OEMs might be challenged by the need to keep up with all these trends.

Here’s why retailers must consider implementing EVs into the future of their business model moving forward.

Don’t get left behind

Rich Pinnock, executive vice president, fleet services, ACERTUS

Auto logistics and transport companies, such as ACERTUS, are already making investments in EV-charging infrastructure – both stationary equipment and chargers that can be used on the go – so its drivers and carriers can successfully complete transports and keep operations moving.

A number of other businesses and automakers are also converting their fleet units to be electric, while traditional OEMs are ramping up their EV production. Companies like Rivian are filing to go public after experiencing significant success in its early adoption of EVs.

In addition, Ford plans to build mega campuses valued at more than $11 billion that will be used solely for EV production. General Motors’ new electric commercial vehicle unit, BrightDrop, is focused on van production in addition to expanding its overall EV lineup.

The government’s path forward

The push for EVs, particularly in the United States, has a lot to do with government at the state and federal level. While states still work to determine compliance requirements for EVs, particularly when it comes to the International Fuel Tax Agreement (IFTA), auto-transport and logistics companies have and are preparing the tools to help businesses prepare for any forthcoming EV compliance needs.

Meanwhile, the Biden administration wants EVs to make up 50% of vehicle sales by 2030 and aims to achieve net-zero emissions by 2050. Congress is even discussing an EV trade-in program that proposes consumers swap their existing gasoline-powered vehicle for zero-emissions vehicles. GM and the state of California are also pledging to sell only zero-emissions new vehicles by 2035. If other states and automakers follow suit, analysts predict 25% of all new vehicle sales by then will be EVs – meaning 13% of all cars on the road would be electric, including fleet vehicles. The International Energy Agency (IEA) also projects EV sales across the world to hit 145 million by the end of the decade.

People want to be part of the EV movement

EV sales are soaring across the United States, China and Europe – meaning interest is peaking and people in the top automotive markets want to drive them. This is good news for fleet managers, dealers, OEMs and other retailers as they look to hire more people and expand their business.

According to a Consumer Reports survey, 40% of all drivers plan to eventually purchase an EV – and younger drivers are more likely to buy electric vehicles than older ones. Public perception of EVs is also “inching toward the mainstream” as 78% of millennials plan to eventually purchase an EV. Additionally, more than 70% of those surveyed believe EVs will reduce climate or air pollution and that automakers should offer other types of environmentally friendly vehicles, such as plug-in electric pickups and SUVs, alongside their current EV models.

How logistics can help with EVs

As EVs become more available and are adopted en masse, it’s important to evaluate what that means for your business and understand the impacts on logistics. Companies across the industry continue to monitor changes and adapt accordingly, in preparation for the changes ahead. As such, a logistics partner can be critical to help meet these new demands and navigate the shift to electric.

ACERTUS is the only full-scale, tech-enabled automotive logistics platform designed to move, store, recondition and title and register finished vehicles. This proven, complete and comprehensive start-to-finish service is driven by a transformative combination of technology, people and experience that turns logistics into a competitive advantage for auto manufacturers, fleets, dealers and anyone in the country that moves vehicles. With one company to handle the entire vehicle journey, this strategy dramatically improves efficiency and reliability for customers.

As executive vice president, fleet services at ACERTUS, Rich Pinnock focuses on global initiatives including proprietary technology development as well as having P&L responsibility of the driveway and compliance service lines.

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