The global push towards sustainability and reduced carbon emissions has catalyzed a significant shift for fleet operators revolving around fleet electrification. As companies transition from traditional internal combustion engine (ICE) vehicles to electric vehicles (EVs), they encounter a unique set of challenges. It’s become increasingly crucial to prepare for these challenges, especially as a recent report by Arval found that fleet managers in Europe anticipate that 20% of their fleet will be EVs in the next 3 years. In this blog, we discuss the need for specialized services and rising total cost of repairs (TCR) as well as how fleet managers can stay ahead of the curve.
The challenges surrounding fleet electrification
From a sample of 8,605 fleet managers, Arval found that fleet electrification is viewed as the primary challenge for the foreseeable future, with 15% saying it’s their number one challenge and 35% ranking it among their top three challenges. Therefore, it’s crucial to first understand the unique challenges EVs and fleet electrification bring to the table before developing strategies for efficient aftesales services management.
The need for specialized services and qualified repairers
In Europe, 42% of companies have implemented or are considering EVs for their passenger car fleet in the next 3 years. While 25% of companies with light commercial vehicle (LCV) fleets are considering the same. With more and more EVs on the road, fleet operators must be aware of the fact that EVs present an entirely different challenge when it comes to fleet servicing.
EVs require specialized maintenance and repair services where traditional service providers may not be equipped to handle the unique needs of EVs. Key components such as high-voltage battery systems and electric motors need specialized knowledge and tools. This means that existing repair and maintenance facilities may require significant upgrades in terms of equipment, training, and EV certifications to handle these new technologies effectively.
This challenge is further reinforced by the shortage of technicians skilled in EV maintenance and repair. Traditional automotive training programs often do not cover the specific needs of EVs, leading to a skills gap. Repairers must either invest in specialized training for their existing staff or hire new technicians with the required expertise, both of which can be costly and time-consuming.
Rising total cost of repairs for fleets
It’s noteworthy to mention that there is concern among fleet managers that there will soon be a significant rise in total cost of repairs (TCR) as a result of fleet electrification. TCR includes the lost business benefits while the vehicle is off-road, repair handling costs, as well as the direct repair costs. The shortage of qualified technicians also contributes to this as this leads to higher labour rates. Moreover, in a case by Fleet Europe on the home care unit of Hjørring, a city in Denmark, damages increased by around 20% since they switched their fleet to EV and the cost of individual repairs is 40% higher than their ICE vehicles. While GDV, the German Insurance Association, found that on average EV repairs cost between 30-35% more.
This then contributes to longer repair times, which is primarily due to the availability of replacement batteries which increases replacement vehicle costs. Thatcham Research reported last year that EVs take 14% longer to repair than ICE vehicles. This adds onto a fleet vehicle’s off-road time and thus leads to a higher total cost of repairs.
How leveraging Fixico’s platform can ensure a seamless transition to EV fleets
At Fixico, we understand the challenges surrounding not just fleet electrification but also EVs in general. The specialized knowledge and equipment required for EV repairs can create significant logistical and financial challenges. That’s why we’re committed to creating a solution designed to help fleet managers efficiently manage this transition so that their fleet is back on the road in no time and in top condition.
Fixico’s platform connects fleet operators with certified EV service providers. Our network of over 3,000 service providers includes technicians who have relevant EV training and are qualified to work with EVs, ensuring high-quality services and minimizing vehicle off-road time. Moreover, fleet managers can make use of data and the expertise in a repairer network on the Fixico platform to make informed decisions and choose the EV certified service providers that best match their business’ needs leading to smarter repair allocation. Echoing Arval's confidence in the future of fleets, we’re actively expanding our network with more specialized EV service providers to better support the growing demand for EV repairs.
By leveraging digital repair management, fleet managers can streamline the entire repair process, reducing administrative burdens through automated workflows. Additionally, the digital driver journey ensures a convenient and efficient process for damage handling. Fleet operators can also receive real-time updates on the status of repairs, enabling them to manage their fleet repairs more efficiently. All of which reduces a fleet’s total cost of repairs through optimizing the different cost components.
Fleet electrification is a crucial step towards a sustainable future, but it comes with its own set of challenges. As the need for specialized services and the rising total cost of repairs for EVs become more prominent than ever, Fixico’s digital solution is designed to ensure a seamless transition and optimized processes for your fleet. Get in touch with us using the button below to see how we can help you on your fleet electrification journey!