Custom Fleet NZ switches over its own fleet

This story first appeared in the June issue of AutoTalk – CLICK HERE to download the magazine FREE

Custom Fleet NZ takes delivery of the first six EVs for its own vehicle fleet in mid-June, selecting the Hyundai Ioniq Elite and Volkswagen e-Golf.

Offering a comprehensive range of fleet management and leasing products, Custom Fleet NZ’s team has been managing EVs within customers’ fleets for the past five years.

So the team has built up significant expertise about EVs and charging solutions.

The six initial EVs will be deployed across Custom Fleet’s offices in Auckland, Wellington and Christchurch and it expects at least 50% EVs in its own fleet by the end of 2021.

“To assess which vehicles we would transition to EVs we applied the same methodology we use with our customers,” Custom Fleet NZ country leader Michelle Herlihy says.

“Our strategic consulting team (experienced fleet and data and analytics specialists) carried out a review of our fleet to identify which vehicles would be the most appropriate to transition to an EV.

“The team have a suite of tools to assess utilisation, trip and distance data. They then completed whole of life costings to make recommendations of vehicles based on price, range and fit for purpose.”

Custom Fleet NZ had to negotiate with landlords to install charging solutions at each site.

“We were due to renew our lease in our Auckland office so the timing worked to enable us to negotiate having the landlord install charging units in our building as part of our new lease arrangements,” Herlihy says.

For Wellington and Christchurch offices, a mix of at work and at home charging has been installed using Schneider Electric charging solutions.

While there were no issues around the transition for Custom Fleet, especially as staff buy-in was extremely positive, Custom Fleet NZ says a lack of availability of some models – SUVs and light commercials in particular – has made large scale transitioning difficult for some customers.

Price remains the biggest barrier for many customers, but Custom Fleet expects to see price parity between EVs and internal combustion engine (ICE) vehicles within five years.

“In the interim, we would love to see the Government introduce incentives such as fringe benefit tax reductions to make EVs a viable option for businesses looking to transition their fleets,” Herlihy says.

As part of Custom Fleet NZ’s EV solution, it has training and education packs for customers to help guide them, as they get used to their EVs.

The EV’s lack of engine noise resulted in an intriguing problem.

“We had one customer come back to us very soon after we had deployed EVs into their fleet to say that there was a significant issue with the vehicles as the batteries were going flat after driving short distances,” Herlihy explains.

“We had installed telematics in the vehicles so we fretted that the telematics devices might be draining the battery.

“It turned out the drivers, who were not used to driving such quiet vehicles, were forgetting to turn the vehicles off when they got home at night as they didn’t have the noise of the engine as their cue to switch off the ignition.

“Needless to say, this is now built into our communication and training packs.”

Staff buy-in to the switch for Custom Fleet’s own passenger vehicle fleet was so

good that the initial six EVs were oversubscribed.

The company’s own fleet comprises “tool of the trade” vehicles for the team to visit customers around the country.

Outside of business hours the EVs become family vehicles.

Custom Fleet NZ says it’s looking to bring on more EVs and will go through the same level of assessment and review next time to get to 50%.

Meanwhile, Custom Fleet is progressing well with its EV+ programme, delivering a complete EV ecosystem to customers for simplicity and ease.