The electrification of commercial fleets is no longer just about hitting sustainability targets – for many organisations, it’s fast becoming a financially-motivated strategy.
That’s the message from a new report released by EO Charging, based on a survey of more than 300 senior decision-makers across the UK and US responsible for vehicle fleets of over 100 units.
According to the findings, 43% of fleet leaders anticipate reduced total cost of ownership (TCO) from their switch to electric – indicating that the transition is now being viewed through a commercial lens, not just a compliance one.
“This research clearly highlights that commercial fleet electrification has now evolved from what was once primarily a legislative led initiative to meet environmental targets to a mainstream business strategy,” said Richard Staveley, CEO at EO Charging.
“Driven by seeing tangible cost efficiencies, organisations across multiple industries have long moved beyond small trials and pilot schemes to embrace electrification as a transformational business benefit.”
Electrification past the pilot phase
The research, carried out by independent agency Vanson Bourne, found that on average, 53% of fleets are already electrified – with the transition well under way even with five years to go until the UK’s 2030 phase out on new petrol and diesel car sales.
Nearly all surveyed organisations (84%) had introduced at least a partial net zero transport initiative, with a further 16% planning to do so. But critically, cost savings were cited as the primary motivation by 54% of respondents – ahead of environmental or reputational concerns. Public sector bodies are further ahead than their private counterparts, with 47% reporting fully implemented net zero transport strategies, compared with just 23% in the private sector.
While commitment appears high, the report also notes that early adopters, categorised as ‘Pioneers’, are not always the ones seeing the strongest returns. In fact, they were less likely than more recent adopters to report operational or fuel-cost benefits, suggesting that rushed rollouts or insufficient infrastructure planning could blunt the potential financial gains.
Known barriers still slowing progress
Despite growing momentum, the report highlighted several persistent blockers to widescale electrification.
The most commonly cited challenges include:
- High upfront costs for EVs and associated infrastructure (42%)
- Difficulty integrating EVs into existing fleet management and data systems (38%)
- Limited availability of fast charging infrastructure (36%)
- Operational disruption caused by changing working practices (34%)
Public sector operators were more likely to flag infrastructure availability, particularly on-route charging, as a key concern. Meanwhile, private sector fleets tended to focus more on back-end integration and ROI modelling.
Uncertainty around policy and energy markets is also creating hesitation. A significant 81% of respondents said fluctuating government policy is making it harder to plan for the long term, with more than half (54%) admitting they are not looking beyond the current administration when setting strategy.
In the UK specifically, energy price volatility is proving problematic – 88% of fleet operators said it makes building a financial case for electrification more difficult. Additionally, 80% highlighted rising global tensions as a growing risk to battery and component supply chains.
Staveley believes collaboration and clarity will be key to overcoming these hurdles. He noted, “Fleet electrification has reached a pivotal inflection point, as businesses seek further clarity at a governmental level to plan for the long-term and maximise the benefits they’ve seen from initial EV adoption.
“In the UK, the Government’s Industrial Strategy marks positive steps in this direction with clearer mandates around policy timelines and decarbonisation targets. However, to scale with confidence businesses should make sure they are engaged with industry bodies, work closely with manufacturing and energy partners, and frequently review government guidance. Working in a collaborative manner will help ensure fleets are best poised to scale efficiently and realise the full promise of electrification.”
Skills gaps and infrastructure still critical
Almost all organisations (99.7%) surveyed said they faced internal skills gaps related to fleet electrification, spanning maintenance, electrical system design, data analysis, and driver training.
Specifically, EV-specific maintenance (35%), charging infrastructure operations (33%), and financial modelling for TCO (29%) were frequently cited. As fleets move from trial phases to scaled operation, internal capability appears to be a key determining factor for success.
When asked what would most help accelerate their electrification journey, organisations pointed to faster and more reliable charging solutions (47%), better analytics tools for fleet management (44%), and more affordable charging infrastructure (38%).
