Partners to build on mutual synergies, push fleets to embrace sustainable, electrification agenda
In the automotive industry’s march towards decarbonization, one key aspect has been that of fleet electrification. Fleets have often been indicted for their high emission levels, underscoring the impact that electrifying fleets will have on environment-friendly transport practices.
Today, fleet electrification is becoming not just a “nice-to-have” but a “must-have” goal. Governments have begun clamping down on vehicular emissions with increasingly stringent emissions targets. Simultaneously, technological advances are on track to neutralize a key challenge of electric vehicles (EVs) being much more expensive than their internal combustion engine (ICE) counterparts. Such trends are serving to highlight the benefits – environmental and economic – of fleet electrification.
According to Frost & Sullivan’s Fleet & Leasing Database, the electrification rate of company cars in the US was at 1.1% as of 2020. This signals a huge potential in the next five years, emphasizing that this is the right time to invest in reinforcements, i.e., charging infrastructure.
The signs are propitious. In a bid to fast-track the transition of company fleets towards EVs, fleet management company LeasePlan USA recently entered into an agreement with EV charging network ChargePoint. What will each of the partners bring to the table and how does this symbiotic partnership envision helping company fleets realize cost-effective, sustainable mobility?
Collaboration to Make Charging More Accessible and Promote Adoption of EV Fleets
From our perspective, this agreement is an obvious and much-needed one, bringing together two leading players in the fields of EV charging and fleet management services. The partners will be pooling their competencies to provide LeasePlan’s customers with software and EV charging hardware. This will be backed by a comprehensive range of services spanning implementation to management. In short, the partnership will provide LeasePlan’s corporate fleet customers access to all the necessary resources, services, and solutions to “enable fully-managed EV charging at home and work.”
There are two aspects to consider here: at-home charging and public charging. In terms of at-home charging, ChargePoint will enable monitoring and managing energy prices and achieve effective energy management via its cloud subscription services.
At-home charging notwithstanding, access to robust public charging infrastructure is critical to allaying concerns over range anxiety and taking eMobility to the next level. With this agreement, LeasePlan’s customers can charge their vehicles at ChargePoint’s extensive network covering over 100,000+ charging stations. Moreover, they can also charge their vehicles at thousands of other EV charging outlets associated with networks with which ChargePoint has roaming agreements.
Economic and Environmental Benefits Beckon
As a signatory to the EV 100 global initiative that seeks to make “electric transport the new normal by 2030,” LeasePlan will look to this partnership to meet its commitment of reducing emissions across its nearly two million strong fleets to net zero over the next decade.
It also reinforces the company’s EV consultancy program that seeks to support companies with strategic and financial advisory aimed at easing their shift from conventional fuel-powered powertrains to their electrified equivalents.
We believe that this synergistic collaboration between LeasePlan and ChargePoint will birth a virtuous cycle. By making EV charging easier and more accessible, it will encourage more fleets to adopt EVs.
In general terms, we expect fleet electrification to trigger new growth and revenue-generating opportunities across the e-Mobility value chain for EV leasing providers, EV manufacturers, energy suppliers, and charging point operators. For corporates, electrifying their vehicle fleets will allow the rationalization of operational costs while moving them closer to achieving their sustainability targets.
