CAP's Green Fleets Business Case Series

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EVs are expected to reach price parity with internal combustion engine vehicles (without subsidies) by 2024. This is due to the plummeting costs of EV batteries, following a similar cost curve to solar power. Battery pack prices fell by 85% between 2010 and 2018, from US$1,160/kWh to US$176/kWh11. In some markets, EVs are already competitive with other vehicles on a total cost of ownership (TCO) basis, especially for vehicles with high usage rates.

The market for electric vehicles is rapidly expanding. In 2017, a new global sales record of over 1 million cars was reached. Over 5 million electric vehicles are now on the road worldwide.

Customer charging is good for customer engagement. The retail sector sees charging facilities as an added service for its customers.

EV integration can dramatically reduce the running costs of fleets. Our EV100 member Deutsche Post DHL, for example, is already seeing 60-70% savings on fuel costs and 60-80% savings on maintenance and repair from its StreetScooter EVs compared to internal combustion engine vehicles. City of Seattle example, for 2018 it was estimated that they save $6,000 USD in fuel costs in consumption to a gasoline car over a 10-year life cycle.

EVs are becoming increasingly price competitive. Battery pack costs - one of the major price factors for EVs - have gone down 85% since 2010. Bloomberg New Energy Finance (BNEF) predicts that unsubsidized up-front costs for battery electric vehicles will be less than internal combustion engine vehicles by 2024.

OEMs are rapidly moving away from petrol and diesel. Over $300 billion of investments in electric vehicles has been announced by global automakers.

Air quality legislation is expected to increasingly restrict polluting vehicles. Cities such as London, Paris, Los Angeles, Seattle, Mexico City and Tokyo, have already committed to creating zero emission zones by 2030.