Fuel cost has companies exploring EVs

Fuel costs are prompting more businesses to investigate including electric vehicles in their fleets.

That’s a trend noticed by Driveline, one of New Zealand’s leading vehicle leasing and finance companies.

A 26% increase in requests for EVs through Driveline has come since April, its chief executive officer Lance Manins says.

He says that’s potentially due to regional fuel taxes and fluctuating fuel costs putting businesses ‘under the pump’.

Manins predicts the EV trend will continue to skyrocket in 2019.

“Businesses embracing electric vehicles is something we’ve been watching closely for several years and we’ve seen an influx of enquiries from those interested in adding electric vehicles to their fleet,” he says.

“Buying EVs can be a big financial outlay and leasing is becoming a more attractive alternative for many.”

More than 10,000 EVs are now on New Zealand roads – up from 440 just four years’ earlier, the growth tracking towards the Government’s target of having 64,000 EVs on our roads by 2021.

Recent Ministry of Transport findings reveal a higher number of private individuals own EVs, as opposed to companies, and currently EV ownership is most prevalent in Auckland. However, Manins predicts this will change.

“Progressive companies are looking at being sustainable and making a positive environmental and social impact,” he says. “EVs fit the bill in those areas, as well as providing tax advantages.”

With EV charging networks being available throughout 88% of the country and indications that an EV can soon be charged at one of those stations within 15 minutes, business commuters have reduced range anxiety and more viable options for getting to destinations, Mannins says.

“We are expecting to see a big line-up of EV releases in the local market in the next five years. This will be a game-changer with increased mileage of some vehicles reaching 400km and purchase prices dropping. Next year, for example, the Tesla Model 3 will be available, and the cost to buy won’t be much more than the outlay of purchasing an imported model of the latest Nissan Leaf.”

Drivers that transition to an EV from an internal combustion engine (ICE) vehicle could also save on annual servicing which amounts to around $400, as well as fuel and taxes which add up in the long-term, Manins says.

“It’s just a matter of time before EVs will be common-place within businesses. The key thing is education on future environmental benefits and the financial benefits for change to happen.”