Navigating the Global Electric Transition During Turbulent Times

Hello, everyone! Recently, Amélie de Valroger and I had the honor of presenting at the Global Fleet Summit in Cascais, Portugal. It was an incredible experience, and today, we’d like to share some of the insights and strategies we discussed on navigating the global electric transition during these turbulent times. Our goal is to help you understand and adapt to the ever-evolving EV landscape. 

We are standing at a pivotal moment in the automotive world. The urgency for corporations to adopt sustainable practices has never been more evident. Electrification shines as a beacon of hope and efficiency in our quest to reduce CO2 emissions. With 70 million new vehicles sold annually, a significant portion belonging to commercial fleets, the potential for impact is monumental. Predictions indicate that by 2030, 60% of all vehicles sold will be fully electric. 

However, despite the rapid advancements in electric vehicles (EVs) and growing market adoption, not all regions are equally prepared for this transition. We are navigating through turbulent times, marked by economic uncertainties, fluctuating EV prices, and varying levels of market readiness. This environment of volatility, uncertainty, complexity, and ambiguity (VUCA) challenges our strategic planning and execution. 

The Current Landscape 

The EV market is currently influenced by a mix of macroeconomic and specific factors contributing to its unpredictability. High retail electricity prices and a competitive OEM price war that began in early 2023 have created a volatile market. Political agendas, regulatory changes, and the phasing out of subsidies further amplify this uncertainty. 

In this context, feedback from global fleet managers, particularly in industries like pharmaceuticals, underscores the increasing complexity of managing a fleet. These managers face challenges such as obtaining accurate data, navigating regulations, and developing effective EV transition strategies. 

Real-World Example 

Let’s consider a global pharmaceutical client with a fleet of 7,890 vehicles across 38 countries. Their powertrain mix includes a variety of fuel types, with a goal of achieving carbon neutrality by 2030. Our comprehensive analysis and support exceeded their expectations, providing clear CO2 reduction plans, TCO analysis, and tailored charging solutions. 

Our Approach 

At Wheels and Ayvens, we have developed a global, tailor-made methodology powered by data to bring Vision, Understanding, Clarity and Agility to our clients. Our approach includes: 

1. Define: Establish clear goals and parameters for the transition. 
2. Scan: Conduct a thorough analysis of the current fleet and market conditions. 
3. Optimize: Identify opportunities for efficiency and impact. 
4. Recommend: Provide actionable insights and strategic recommendations. 
5. Implement & Monitor: Support the execution and continuous improvement of the strategy. 

Key Takeaways 

• Take a “Global” Approach: Balance global strategies with local adaptations to meet specific market needs. 
• Seek Impact and Efficiency: Focus on actions that drive significant results. 
• Be Flexible: Adapt to regulatory changes and new market dynamics. 
• Involve Stakeholders Early: Engage employees and stakeholders from the start and keep them informed. 
• TCO Approach: Include charging patterns in total cost of ownership analyses. 
• Adapt to New Brands/Models: Stay open to new options and be ready to adjust. 
• Play with Mileage and Duration: Optimize based on usage patterns. 
• Select OEM Partners Wisely: Consider discounts, price stability, and maintenance support. 

Conclusion 

As we navigate these turbulent times, our commitment to driving sustainable mobility forward remains unwavering. By embracing a strategic and flexible approach, we can turn challenges into opportunities and lead the charge toward a greener future. Let’s make a lasting impact together. Together, let’s go far! 

By Laura Jozwiak, Chief Client Officer, Wheels, and Amélie de Valroger, Head of Electric & Consultancy, Ayvens