As organisations worldwide increasingly prioritise sustainability, the shift towards electric vehicles (EVs) is accelerating, offering both environmental and economic benefits. The 2024 Regional Spotlight report, titled Accelerating Fleet Decarbonisation in Australia and New Zealand, highlights the region’s progress and outlines strategies to overcome challenges in this transformative journey. Christopher Tulloch, President of Custom Fleet in Australia and New Zealand, underscores the importance of sustainability in the fleet sector, stating, “In Australia and New Zealand, sustainability is one of our strategic drivers, so we walk the talk aligned to our strategy; this is why we’ve already achieved full electrification in our internal ANZ fleet.”
EV Uptake in Australia and New Zealand
Australia and New Zealand have seen remarkable growth in EV adoption, driven by supportive policies, advancements in technology, and a broader range of EV options. By 2023, Australia had over 180,000 EVs on its roads, a figure that more than doubled from 2022. New Zealand’s rebate scheme, which ended in 2024, alongside accessible entry-level pricing, propelled EV numbers to over 78,000.
From an environmental standpoint, transitioning from internal combustion engine (ICE) vehicles to EVs significantly reduces lifecycle emissions, aligning with national goals for carbon reduction and net-zero targets. This transition is not only critical for reducing greenhouse gases but also for improving air quality in urban areas, leading to public health benefits.
Economic and Operational Benefits of EV Adoption
The report identifies several economic advantages for businesses adopting EVs. Although upfront capital costs remain higher, EVs offer long-term savings through lower operating costs, including reduced maintenance needs and cheaper, more stable electricity prices compared to fuel. As Tulloch points out, “The challenges for fleet and business leaders are significant, but they are becoming more manageable.”
The total cost of ownership (TCO) for EVs is improving as global production scales up, creating cost-competitive options, especially in the commercial light-duty vehicle (LDV) sector. By 2025, it is anticipated that EVs in this market could achieve cost parity—or even become more economical—compared to ICE vehicles.
Challenges in Transitioning to EVs
Despite these benefits, transitioning to EVs is not without its hurdles. Limited availability of fleet-specific EVs, high upfront costs, and the complexity of charging infrastructure remain significant challenges for organisations. Additionally, range anxiety and unfamiliarity with EV technology can deter both fleet managers and drivers. However, these concerns are gradually being addressed through improved charging networks, telematics solutions, and proactive charge management plans.
Infrastructure development is crucial for accelerating adoption. Both Australia and New Zealand must expand their EV charging networks, particularly in urban areas and along major highways. This calls for collaboration between governments and the private sector to deliver efficient and accessible charging solutions.
Recommendations for Fleet Decarbonisation
The report offers actionable strategies to help businesses navigate the EV transition:
- Create a Roadmap for Fleet Decarbonisation: A detailed change management plan is essential. This includes stakeholder engagement, updated policies, monitoring frameworks, and impact assessments.
- Assess EV Readiness: Organisations should evaluate policies, infrastructure, and services to support large-scale EV rollouts. Training programs for drivers and fleet managers are critical for fostering familiarity and confidence in EV technologies.
- Leverage Telematics Data: Telematics systems can provide valuable insights into vehicle usage, fuel consumption, and maintenance needs. This data enables smarter decision-making and optimised charging strategies.
- Pilot Small-Scale Deployments: Initial EV deployments allow businesses to assess real-world impacts, address concerns such as range anxiety, and refine operational strategies for larger rollouts.
- Focus on Economic Opportunities: The EV transition opens doors to industries like battery manufacturing, smart grid technology, and renewable energy. Australia, with its competitive edge in lithium mining, stands to benefit from the growing EV supply chain.
Policy and Consumer Impact
Strong policy support is vital for driving EV adoption. Incentives, research funding, and clear regulatory frameworks can stimulate infrastructure development and promote sustainable practices. Business fleets adopting EVs can also influence consumer behaviour, normalising EV technology and expanding the second-hand EV market.
Custom Fleet’s full electrification of its internal fleet sets a strong example. As Tulloch reflects, “Sustainability becomes the standard rather than the exception,” urging businesses to align operations with global sustainability goals.
Conclusion
The shift to EVs is no longer a distant objective but a pressing necessity for Australia and New Zealand. With proactive strategies and continued collaboration between stakeholders, the region can not only meet its climate goals but also emerge as a leader in green technology. As Tulloch aptly summarises, “This report provides valuable guidance on accelerating your journey to fleet decarbonisation.”
This journey, while challenging, offers a unique opportunity for businesses to lead in sustainability, balancing financial and environmental goals for a resilient future.
