Australia’s electric vehicle market has reached a new milestone, but Chau Le believes the next stage of growth will depend on one segment stepping up faster than the rest: fleet.
Le, who is General Manager, E-mobility at Origin Energy and Chair of the Electric Vehicle Council, said the broader EV market is moving quickly, but fleet uptake is still lagging behind its influence on the total new vehicle market.
“Vehicle sales on the fleet side represent 50% of new car sales, but on the EV side, 20% of EVs are sold to Fleet,” Le said.
That gap matters because fleet has always played a major role in shaping the Australian car parc. If fleets are responsible for about half of all new vehicle purchases, then they also have the power to accelerate the transition to lower-emission transport far more quickly than private buyers alone.
For fleet managers, procurement teams and sustainability leaders, that makes the current moment more important than just another sales milestone. It highlights a missed opportunity.
Private buyers have moved faster than fleets
The broader EV market has gained momentum this year, supported by more model choice, lower entry prices, the FBT exemption through the Electric Car Discount, and the sharp increase in petrol prices.
That combination has helped push EVs beyond the early adopter phase and into the mainstream.
But while private buyers and novated lease customers have responded quickly, many fleet programs are still working through the internal complexity of transition.
Le said fleet customers are increasingly coming to Origin to understand what is involved in making the switch, but the process is far more involved than simply replacing one vehicle with another.
“With fleet, it’s a little bit more involved than just getting the car and handing it to the driver and saying off you go,” she said.
That complexity is familiar to many fleet operators. An EV transition can involve charging at work, at depots, at drivers’ homes, or on the road. It can also raise questions about reimbursement, fuel card policies, infrastructure ownership, driver training, and who inside the organisation actually owns the project.
The 2030 clock is getting louder
Le said many organisations now have decarbonisation and emissions reduction targets tied to 2030, which means time is running short.
“They’ve got three and a half years left,” she said.
That comment goes to the heart of the fleet challenge. A business that delays action today may still be locking itself into petrol or diesel vehicles that remain in service well beyond its stated target dates.
Le warned that if organisations do not start now, they risk creating a mismatch between their vehicle replacement cycle and their emissions strategy.
“If they don’t start doing something now, they’re going to be stuck in a five-year lease over a petrol car beyond 2030,” she said.
For fleet decision-makers, this is not simply about choosing an EV when the next order is placed. It is about aligning asset replacement planning with broader corporate commitments and avoiding a situation where transport emissions become the part of the target that cannot be delivered on time.
EV transition is a whole-of-business project
One of the more useful insights from Le’s interview is that EV adoption in fleets is rarely just a fleet department decision.
She said the process often starts with a sustainability manager pushing the emissions agenda, then expands to include the fleet manager, facilities teams, energy specialists, HR or people-and-culture teams, and eventually the drivers themselves.
“It’s a lot of stakeholders in this EV transition,” Le said.
That reflects the reality many fleet operators are now discovering. The fleet manager may be expected to lead the project, but the practical issues cross several functions inside the business.
Charging infrastructure may fall under property or facilities. Home charging reimbursement may involve finance and HR. Driver education may require support from line managers and operations teams. If depot charging is involved, the business may also need energy expertise to assess power supply, site design and future capacity.
Le said the businesses that move fastest are often the ones with clear executive backing.
That is an important lesson for fleet teams. EV transition programs can stall when responsibility is spread across too many stakeholders without a clear sponsor to make decisions and create urgency.
Passenger vehicles are no longer the hard part
Despite the complexity, Le believes the case for electrifying passenger vehicles is now much stronger than it was even a few years ago.
“I would say with passenger vehicles, there shouldn’t be any more barriers or objections to making that switch,” she said.
That is a strong statement from someone working with customers on transition projects every day. It suggests that for many passenger car and SUV applications, the market has matured to the point where the remaining barriers are more organisational than technical.
Charging options are improving. Typical EV range now covers normal daily driving comfortably. Whole-of-life cost savings are easier to demonstrate. And businesses now have more case studies from early adopters to draw on.
The next challenge, Le said, is moving beyond passenger cars into fit-for-purpose commercial vehicles.
“We’re looking at Utes. We’re looking at vans,” she said.
That is where many fleets are now focusing their attention. Passenger vehicle electrification is increasingly seen as achievable, but light commercial segments still require more choice, more confidence around payload and range, and more operational testing.
The pilot phase is ending for some fleets
There is also evidence that some fleets are moving beyond the pilot phase.
Le said customers that started the journey with Origin two years ago are now reaching the point where they are ready to scale.
“They’re at the point now where they are switching 100% of their fleet over. It’s not just a trial or a pilot of one or two vehicles anymore,” she said.
That should give confidence to organisations still hesitating at the first step. The earliest adopters have already done much of the heavy lifting around charging, policy, driver engagement and business case development. Their experience is now helping create a pathway for the next wave of fleet transitions.
Fleet has to lead the next phase
Australia’s EV transition is no longer waiting for consumer interest. The demand is there, the policy settings are having an effect, and the economics are becoming more compelling.
What is still missing is a stronger response from the fleet sector.
If fleet continues to account for half of new vehicle purchases, then its decisions will have an outsized impact on emissions, vehicle supply, charging demand and the second-hand market that helps spread EV adoption more broadly.
The message from Le is clear: fleet cannot afford to sit back and watch the transition happen around it.
For many organisations, the question is no longer whether EVs are suitable. The question is whether their internal processes, leadership and replacement planning are moving quickly enough to keep up.
