Whisper-quiet electric vehicles took over Sydney’s Eastern Creek speedway on July 4 when fleet managers test drove one of the largest selections of EVs assembled in Australia.

The Clean Energy Finance Corporation (CEFC) organised the NSW EV Drive Day to demonstrate why EV (electric vehicle) sales are gaining momentum around the world and encourage fleet buyers to use their market influence to super-charge Australia’s move to electric fleets.

CEFC CEO Ian Learmonth said fleet buyers could play an important role in helping Australia tackle one of its toughest emissions challenges – transport. Australia has some 19,000 organisations operating fleets with 20 vehicles or more, representing more than 2.1 million vehicles in total.

“Australians have traditionally been early adopters of new technology, but we have fallen behind the pack when it comes to EVs,” Mr Learmonth said.

“Fleet buyers purchase as many as one in five new vehicles in Australia. We want to see EVs become their fleet vehicle of choice. It’s about using their market power to influence the way we use our roads and the impact we have on our environment.”

Market lag

Australia is the world’s 16th largest car market but ranks 21st in new EVs sold, according to the 2019 EV Outlook from Bloomberg New Energy Finance. While there are about 9100 EVs in Australia, this is 25 per cent lower than in the much smaller New Zealand market.

“In a smaller market like Australia, we know it will take time for more EV models to become available, and for prices to come down to make EVs more affordable for personal buyers. For fleet buyers, where driving needs are different, there is an opportunity for the EV transition to occur more quickly,” said Learmonth.

Cars and light-duty vehicles were responsible for 75 per cent of Australia’s total transport emissions of 102 million tonnes in 2018, according to the National Greenhouse Gas Inventory. The data also shows that transport was the equal fastest growing sector for emissions (along with fugitive emissions) from 2000 to 2018, with continued growth expected to 2030.

Modelling produced for the CEFC and the Australian Renewable Energy Agency by Energia in 2018 found that – with the right combination of incentives, models and infrastructure – EV sales in Australia could surge from as soon as 2021. The Energeia report forecast that EVs could represent 90 per cent of all cars and light commercial vehicles by 2050, supported by $1.7 billion in investment in new public-access fast charging points.

The NSW EV Drive Day gave fleet buyers the chance to test the driving experience and performance of a range of vehicles and discuss vehicle operating considerations with manufacturers and industry experts. On show at the event was the latest range of battery EVs, plug in hybrids and hydrogen fuel cell EVs, across 16 models and 21 vehicles. More than 100 registered fleet managers and buyers met representatives from BMW, Hyundai, Jaguar, KIA, Mini, Mitsubishi, Nissan, Renault, SEA Electric, Tesla and Toyota.

Buying intentions

The test-drive day’s participants were surveyed by CEFC on current EV take-up and intentions, with the following statistics compiled:

• 65 per cent currently have no EVs, 15 per cent have one, and 10 per cent have two in their fleets
• 75 per cent expected to increase the number of EVs in their fleet in the next five years, with 42 per cent of these predicting it to happen in 2-3 years 
• 78 per cent were more likely to include EVs in their fleet as a result of the NSW EV Day  

Attendees also ranked the factors with an impact on their decision to include EVs in their fleet.

Emissions and environmental benefit ranked highest for 63 per cent; lower operating cost ranked top for 26 per cent of participants, followed by showing leadership, and EVs suitability for regular short journeys. The least important reason for buying EVs was an attraction to new or latest technology.

More than 40 per cent of the test-drivers said they would consider investing in their own charging infrastructure, while 11 per cent already have already done so. 

Public sector interest

Support for introducing EVs in the government sector is rising, according to Rob Wilson, Manager IPWEA FLEET.

“Interest in EVs from our fleet community has increased significantly over the last two years, with many fleets planning, implementing or already operating EV options,” he said.

“IPWEA is actively involved in supporting the adoption of EVs by fleet operators and is a member of the Charge Together Fleets Core Working Group, a program to assist fleet and sustainability managers transition to electric vehicles and future mobility models through the provision of knowledge, networks, tools and resources.”

IPWEA FLEET provides industry knowledge on EVs through our e-newsletter FLEET InTouch , the IPWEA Australasian Fleet Conference and at Plant and Vehicle Management Workshops.