ALD Automotive and JLR pave the way to electric
Many companies are examining which way to go with their car policy over the next few years. Facing CSR pressures, WLTP and rising fuel costs, most fleet managers are convinced that electrification is a sine qua non.
ALD Automotive, Europe’s largest leasing company, and Jaguar Land Rover, who have just launched their very first electric car, the new all-electric Jaguar I-Pace, recently organised a round table discussion with clients on how to go about electrifying their fleet. 30 key fleet decision makers were invited from across Europe to attend an independent platform to exchange information, experiences and best practices.
“The agenda was created to discuss and present the topic from different angles by dedicated subject matter experts but also to create an open forum for international fleet managers”, explains Dennis Rachow, Global Sales Manager, Jaguar Land Rover.
One such expert was Nicolas Meilhan from consultancy firm Frost & Sullivan, who provided a detailed outlook of EV sales, charging infrastructure, battery costs, range expectations and TCO.
An operational conundrum
Attendees on the whole seemed convinced of the arguments in favor of EVs, but they also expressed reservations regarding:
• The availability of charging infrastructures in most markets and the different options available (home charging, public charging and super charging)
• How to assess the available range of EV products available in the market to date
• Support from manufacturers and lease companies in order to provide detailed TCO analysis to paint a fair picture on the pricing of powertrain models
• Assessing the true TCO of PHEVs and using driver profiling and policies to enhance their competitiveness.
“We noticed thatmany questions raised during the roundtable were operational. Clients were interested in finding out how to introduce electrified vehicles into an international fleet and, in particular, how tocompensate for home charging, implementing charging facilities, driver profiling, and so on”, comments Jeremy Cleary, Head of International Sales - New Business, ALD Automotive.
Customers not only expect EVs that are easy to use, but also practical support to make e-life easier. “That is what leasing companies like ALD Automotive are offering an operational lease package that includes the provision of a home charging solution and split billing for the electricity used to charge the car”, highlights Jeremy Cleary.
On top of that, fleets require transparency on TCO. They need involved parties to work together to overcome any TCO gaps that may arise between ICE and EV. “In addition, fleet managers are expecting a more holistic approach considering that this is a relatively new technology,” added Dennis Rachow.
Key takeaways from ALD Automotive and JLR’s roundtable:
• There is high interest from fleet managers to integrate electrified products into their international fleets
• The market share is growing, but there will be more potential once current obstacles have been addressed. Confidence has, however, risen considerably in the technology.
• The technology is progressing quite rapidly and creates more space for EV’s in car policies.
• The adoption rate is heavily impacted by taxes and geographies
• A full package offering (EV + charging solutions + policy) is a must to simplify and encourage adoption
• Different technologies are needed to match different driver profiles and ICE vehicles will certainly continue to play a major role in the foreseeable future