Hybrid fleets are becoming increasingly attractive to businesses looking to reduce emissions and optimize fuel efficiency. In 2024, global sales of fully electric and plug-in hybrid vehicles rose by 25%, in no small part due to business fleets. Toby Poston from the British Vehicle Rental and Leasing Association confirms that, “Fleet registrations continue to drive the uptake of EVs.”
Despite the many benefits of hybrid fleets, some companies are still hesitant to make the transition. There are four key concerns preventing businesses from adopting hybrid fleets, but these challenges can all be addressed.
What Does the Term 'Hybrid Fleet’ Mean?
Fleets are groups of vehicles owned or leased by businesses, government agencies, or other organizations rather than by an individual person.
A hybrid fleet is made up of vehicles powered by different energy sources, usually a mix of traditional gas-powered vehicles and electric vehicles (EVs). Businesses use hybrid fleets to balance the reliability of traditional fuel vehicles with the sustainability and cost-savings of EV technologies.
Defining Hybrid Transportation
Hybrid transportation refers to vehicles that use two or more power sources, most commonly combining a gasoline or diesel engine with an electric motor. The two systems work together, allowing the vehicle to use less gas. This results in better fuel efficiency and reduced emissions.
A hybrid approach allows companies to transition toward increased sustainability while still ensuring efficient operations.
The Business Benefits of Adopting a Hybrid Fleet
Businesses are increasingly transitioning to hybrid fleet management because it comes with several advantages:
Fuel Savings: Hybrid vehicles consume less gasoline and diesel than traditional vehicles powered only by internal combustion engines (ICE). This approach reduces operational costs for businesses.
Lower Emissions: A mix of hybrid and electric vehicles helps companies meet environmental regulations and corporate sustainability goals.
Government Incentives: Many governments offer tax credits, rebates, and other financial advantages for businesses that invest in hybrid technology.
Public Relations: Hybrid fleets can improve a company’s reputation for sustainability and innovation.
Flexibility: A hybrid fleet made up of both fuel-powered and electric vehicles allows for uninterrupted operations even if charging infrastructure is unavailable.
A 2024 RMI analysis proved that these incentives for fleet operators translate to real business benefits. Among the findings: Electric vehicles have a 9% lower total cost of ownership than equivalent fossil fuel vehicles, even when the cost of charging infrastructure is included.
Why Aren’t Businesses Investing in Hybrid Fleets?
Despite these benefits, some companies haven’t added hybrid vehicles into their fleets because of several concerns:
1. The Initial Set-up Costs of ‘Younger’ Technology
Investing in hybrid vehicles involves significant upfront costs. The price of buying and integrating hybrid technology can be a major deterrent, especially for smaller businesses with tight budgets. While long-term fuel savings can offset these costs, the high initial investment is still a barrier to entry for many companies.
2. Concerns About Reliability
Hybrid technology is still evolving, and many businesses have concerns about the longevity, maintenance costs, and charging needs of electric vehicles. Reliability is crucial for companies, and they may worry about integrating hybrid fleet management systems and new vehicle types into their existing operations.
3. Long-Distance Transport and Current EV Battery Life
Long-haul transportation remains a challenge for hybrid and electric vehicles. Heavy Duty Vehicles (HDVs) are a major source of greenhouse gas emissions – HDVs make up only 5% of road traffic in the United States but create 25% of transportation emissions. Still, in 2023 electric trucks made up less than 0.1% of total truck sales in the U.S.
Battery technology and charging infrastructure gaps are the main issues holding back electric long-distance transport. One California-based distribution company president highlighted this challenge, stating, “There’s a lot of added weight [due to heavier batteries] to get the travel range you need.” Extra stops and long charging times mean current long-haul EVs can’t compete with their traditional fuel-powered predecessors yet.
4. Drivers and Employees Don’t Fully Trust the Technology
Employee adoption is another hurdle for hybrid fleet adoption. Drivers used to traditional fuel-powered vehicles may be wary of transitioning to hybrid models, concerned about performance, refueling time, and unfamiliar technology. Without proper training and education, fleet operators might resist the change, slowing down companies’ adoption of hybrid fleets.
Overcoming These Roadblocks in the Future
Advancements in technology and infrastructure will make hybrid fleet management more practical for companies down the road:
Battery Technology: Improvements in solid-state batteries and faster charging solutions are expected to improve performance and reduce concerns about range limitations.
Charging Infrastructure: Expanding charging networks will lessen drivers’ range anxiety over access to charging stations for hybrid and electric vehicles.
Decreasing Costs: As EV technology matures, the high initial investment for hybrid vehicles will decrease and integrating EVs into fleets will become more accessible.
Employee Training and Incentives: If businesses increase focus on educating and incentivizing employees to adopt hybrid and electric vehicles, it will ease the transition to hybrid fleet operations.
Hybrid fleets are a crucial step for businesses and organizations making the move to sustainable transportation. As current barriers are addressed and emerging technologies develop, more companies will be able to use hybrid fleets to enhance efficiency, reduce costs, and meet their environmental goals.
For more on how EVs will power our future, check out this article: The Future of Electric Vehicles: Exciting Tech Advancements
