Fleet Advantage announced at the IAA Transportation 24 Conference the launch of its latest innovative offering, a new “EV Path” program designed specifically to support heavy duty fleet organizations in their transition to electric vehicle (EV) and alternative fuel trucks. This pioneering initiative aims to facilitate the shift toward alternative fuel vehicles in a practical way, aiding fleets in meeting their sustainability goals while reducing emissions.
As the transportation industry faces increasing pressure to adopt alternative fuel technologies, the transition to electric trucks represents a significant investment. Understanding the challenges associated with this shift, Fleet Advantage developed its new EV Path program to provide a practical solution built with flexibility in mind for fleets navigating this complex change. The adoption of EV trucks has been closely watched on a global scale, and nearly half of fleet respondents to a recent IAA Conference survey (49%) said they believe Europe is ahead of the U.S. in heavy duty truck transportation and logistics, with 26% citing zero-emission tractors as the main reason.
Under the new program, Fleet Advantage will match the monthly lease payment on the lease of the electric truck, to that of a diesel truck, which represents a more digestible investment level for the fleet. This could represent savings to the fleet of up to $3,000.00 per truck, per month, in addition to off-loading the bulk of the equipment’s residual risk. The majority of fleets today are still taking a calculated and measured approach to the EV truck acquisition strategies as they continue to look at the buildout of their alternative fuel infrastructure, such as charging stations and maintenance operations.
While the companies remain responsible for the buildout of their infrastructure needs in procuring and utilizing electric trucks, Fleet Advantage is planning a rollout later this year of an extension of its fleet services offerings where they will introduce additional consultative services to help fleet clients with a suite of solutions to maximize the acquisition, utilization, maintenance, and surrender of EV and alternative fuel truck leases.
In an industry benchmark survey conducted in February 2023, 65% of respondents said they were most interested in electric trucks, while 15% cited hydrogen and 25% CNG. Forty-five percent of the respondents also noted that the time frame to deploy alternative fuel trucks would be 5-10 years. This past year in a follow up survey it was noted that those numbers were shifting, with 33.3% indicating EV over the next 5-7 years (29.6% saying another 10 years), and 38.5% indicating hydrogen. This timetable for electric truck adoption continues to change, as three years ago the majority (54%) said they didn’t plan to deploy electric trucks for 5-10 years. Also interesting is that the most recent survey shows that roughly 25% of fleets still do not see the value in adopting electric nor hydrogen trucks, respectively. All of this change reinforces the fact that fleets have unique timelines in how they wish to bridge over to alternative fuels.
“Adopting electric trucks is not just an environmental mandate but also a significant financial commitment,” said Brian Holland, President and CEO of Fleet Advantage. “Our innovative EV Path program is yet another pioneering initiative developed by our team, designed to bridge the gap between traditional diesel fuel vehicles and the future of alternative fuel-powered transportation. By offering flexible financing solutions with practicality in mind and fleet services support, we aim to empower fleets to make the transition smoothly and effectively.”