Change is always present in the fleet world, and moving towards mixed-energy fleets is one of the more impactful shifts in recent memory.

The transition to electric vehicles (EVs) is not a question of when, but how best to integrate them. Just as the combustion engine overtook the horse-drawn carriage and digital cameras replaced film, better technology always prevails. EVs are no longer an experiment but a global movement driven by undeniable economic, environmental, and technological advantages.

Fleet transformation often involves combining a variety of vehicle types, including gasoline, diesel, EVs, and hybrids. This approach allows businesses to leverage each technology's strengths and create more flexible operations, but understanding the complexities and opportunities of mixed-use fleets is crucial for long-term success.

Late last year, fleet management solutions provider WEX commissioned market research firm Frost & Sullivan to survey 500 organizations with commercial vehicles across the U.S., Europe, and Asia Pacific. The survey's results, “The Commercial EV Transition: Global Insights on a Mixed-Energy Fleet Future,” showed that 80% of fleet operators surveyed intend for at least 25% of their fleets to be EVs by 2030.

External Forces are Driving EV Interest 

Several factors, including sustainability goals, regulatory pressures, and operational efficiency, drive the move to embrace EVs. Together, they are reshaping how businesses manage their assets as a mixed-energy fleet model. 

One of the biggest factors, decarbonization, plays an important role, with the Frost & Sullivan survey revealing that 70% of respondents point to decarbonization as either an “important” or “cornerstone” component of their business strategy. Overall, nearly two-thirds (63%) of fleet managers specifically noted they had a low-carbon goal they needed to achieve by or before 2030. 

Of course, the bottom line will always be a force for change, and reducing operational expenses is an attractive proposition in a challenging business environment. When surveyed, respondents said cost savings ranked third as the top 10 drivers for fleet adoption of EVs, behind reducing carbon emissions and decarbonization goals. Larger fleets ranked cost savings as the most important driver above carbon-related categories.

“The big differential between diesel and electricity cost is a huge opportunity for fleets,” said Dr. Jose Serras-Pereira, Director of Mobility Advisory for Frost & Sullivan, during a recent WEX-hosted LinkedIn Live panel discussion. “The electricity costs can be 10 to 20% of the cost of diesel. This is a huge component of reducing the total cost of operation when building a mixed-energy fleet.”

The Challenges of Mixed-Energy Fleet Integration

The transition to mixed-energy fleets is not without its obstacles. One of the most significant hurdles is the increased complexity of fleet management. Managing different energy sources, optimizing routes, and ensuring vehicle uptime requires a sophisticated approach. Fleet managers must balance EV charging with traditional refueling while maintaining efficiency and meeting service-level expectations. 

This requires robust data management and advanced analytics to track vehicle performance, energy consumption, and charging patterns. Many fleet managers still rely on legacy systems that struggle to integrate EV-specific data, leading to data fragmentation and hindering optimization efforts.

Infrastructure gaps also pose a significant challenge. Public charging infrastructure remains inconsistent, particularly for long-haul and rural operations. While the number of charging points is increasing, the pace is often insufficient to meet the growing demand. This is particularly true for commercial fleets that require reliable and fast charging options. 

Solutions to Simplify the Journey

To overcome these challenges, businesses must adopt innovative solutions. Smart energy and route planning, leveraging advanced telematics and real-time analytics, can optimize energy use and reduce downtime. Predictive tools can help plan routes based on charging availability and energy efficiency. 

Expanding charging access through a mix of depot, home, and en-route charging solutions is also essential. Collaboration with governments and private sector players can accelerate infrastructure deployment.

Extracting the cost benefits of adding EVs to a fleet through data analysis also plays a part in optimization. That data will be an important proof point when fleet managers want to come back to the business and share how EVs are saving the company money.

The benefits of mixed-energy fleets appear to outweigh any issues. Key insights from Frost & Sullivan’s research reveal that businesses are lowering maintenance and operational costs while leveraging advanced tools and technologies to overcome integration challenges. EVs are connected, data-driven assets, enabling continuous over-the-air upgrades, predictive analytics, and deeper fleet insights, capabilities that ICE vehicles cannot match.

A comprehensive approach can help to ease the transition to EVs, including these vital steps:

• Assess & Plan: Leverage data and expertise to assess the most cost-effective and practical construct for a mixed-energy fleet, including which vehicles are best to transition, for what purpose, and when.

• Operate: Streamline operations with a single card or mobile app to pay for charging and fueling, and use integrated reporting and invoicing. Enable drivers to access low-cost energy at private depot sites or homes, where drivers can be reimbursed for their home energy usage.

• Track Performance & Maintain: Measure vehicle emissions, gain insights to maximize savings, generate automated monthly compliance reports, track progress to meet business performance and sustainability goals, and continue to optimize the mixed-energy fleet.

“Fleets run on tight margins and run complex operations,” said Serras-Pereira during the WEX LinkedIn Live EV panel last March. “Any big transition like adopting EVs will create some doubts and concerns. Mixed-energy fleets will exist for many years for many fleets, and the question of how to optimize their operations, data, and technology will be the key to this transition."