Financial Hurdles and Making the Business Case
Upfront cost remains one of the most significant hurdles in fleet electrification.
Total Cost of Ownership Breakdown (Indexed) Total Cost of Ownership Breakdown (Indexed)
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
5
20
20
Electric vehicles still typically carry a higher purchase price than their diesel or petrol counterparts, especially for vans and trucks. Recent industry research confirms that cost, not range anxiety, is now the number-one barrier to choosing an EV for fleets and drivers alike [22] . This is not surprising: when comparing list prices, an electric van can be many thousands of pounds more expensive
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35
55
40
than an equivalent diesel van. Likewise, installing charging infrastructure at depots or workplaces entails substantial capital expenditure. Many operators report struggling to quantify and justify the large upfront investment needed for chargers and grid upgrades [23] . In one government-commissioned survey of van fleets, even
10 12 14 16 Cost per 100 Miles: Electric vs Diesel (£) Cost per Mile: Electric vs Diesel (£)
Diesel (Index)
Electric (Index)
Purchase
Fuel/Energy
Maintenance
Tax & incentives
13.5
those aware of the available OZEV grants said the cost of major power supply upgrades was a major barrier , and they found it difficult to make the financial case to their boards for such spending [23] . Fleet decision-makers often operate within tight budget cycles, where capital budgets are planned 1–2 years in advance [24] . This means that to fund EVs and infrastructure in, say, 2025–2026, the business case needs to be built now and approvals lined up well ahead of time.
0 2 4 6 8
4.5
Electric (off-peak/home)
Diesel van
6
Electrifying UK Fleet Operations: Challenges, Strategies, and the 2035 Deadline
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