Introduction
Today, sustainability is at the top of everyone's minds. As a result, reducing the carbon footprint has become a must for businesses of all kinds, and one of the simplest ways many companies aim to achieve their sustainability goals is by switching their fleets completely to electric. But switching entire fleets to electric comes with its own set of challenges. But of all, a high up-front cost is a problem that often finds its solution in business car leasing. Let's understand how.
Challenges businesses face while switching to electric fleets
Here are some of the common challenges that businesses face while switching their fleets to electric:
High initial cost
Electric cars have been here for a while now. Still, the premium to get an electric vehicle remains high, and that is one of the many reasons why there has been a slow adoption of electric vehicles, especially four-wheelers. Not many businesses can overnight think of completely switching their fleets to electric because of the initial cost of down payments or full payments for buying four-wheelers on a large scale.
EV charging infrastructure
Another important factor hindering the switch to electric power is the lack of EV charging infrastructure, even in metro cities. The lack of proper charging infrastructure also pushes companies to postpone their plans to shift to electric fleets as they can bring operational and range anxiety concerns. But the government is keen on solving this particular issue as you would have seen a slew of new electric charging stations are being set up across all major cities and towns. The goal is to make the switch to electric vehicles faster and smoother.
Range anxiety
Range anxiety is one of the reasons why businesses often find switching to an electric fleet a skeptical move. Having range anxiety is normal. But you should note that this particular challenge is being solved by OEMs. These OEMs are launching newer vehicles with an impressive range per charge, along with lower charging times.
Maintenance and repairs
Last but not least, maintenance and repair costs can also lead to increased worries for companies and car fleet operators. As a result, most companies are postponing their plans to switch to electric.
How business car leasing can ease the shift to electric car
A corporate vehicle lease can help companies switch to car leasing by offering an electric car fleet without a massive upfront cost. In a corporate vehicle lease, companies are not required to pay a massive down payment, but only a small leasing solution fee per month. This makes switching to an electric fleet much more affordable in the initial phases.
Another reason why corporate fleet management can help companies gain more confidence towards switching to electric is that a corporate car lease company covers the maintenance and repair expenses. As a business, all you need to pay is a monthly rental fee to fleet car leasing companies.
So, this means that a business car leasing solution offered by fleet car leasing companies can actually solve two of the four major issues faced by businesses in switching to an all-electric fleet.
Do you know?
According to the IMARC Group, the global car leasing market size reached US$ 594.6 Billion in 2023. This trajectory suggests a steady growth rate (CAGR) of 5.49% between 2024 and 2032.
In India, various corporate car lease companies provide business car leasing solutions. This helps businesses offset the initial cost of investing in an electric car fleet. These platforms have a wide range of electric vehicles from all leading OEMs in the country.
Conclusion
A corporate vehicle lease can significantly ease companies' transition to electric vehicles (EVs) by mitigating upfront costs and reducing financial risks. Leasing EVs allows businesses to adopt the latest technology without the substantial initial investment required for purchasing, making it financially feasible to switch from traditional to electric vehicles. Long story short, corporate vehicle lease solutions indeed make corporate fleet management much easier for companies of all sizes.
If you want to upgrade your corporate fleet, meet Quiklyz - one of the leading fleet car leasing companies offering clear and transparent pricing. Quiklyz empowers you to optimize fixed expenses for predictable budgeting. Take control of your fleet today.