Here’s Why Investing In Electric Vehicles For Business Is Worthwhile

The latest market research shows electric commercial vehicle sales worldwide will grow from 353,000 in 2024 to 3.1 million units by 2030, according to MarketsandMarkets Research. Over the past few years, the electric commercial vehicle segment was comprised of buses only. In recent years, the demand for commercial vans has increased significantly as more businesses shift to electrified mobility. 

Transitioning to electric vehicles is one of the best ways to make your company sustainable. But besides making transportation greener, are EVs ideal for your company fleet? Here’s why investing in electric vehicles for business is worthwhile.

Owning EVs is Cheaper

It’s true that the average cost of an electric vehicle is quite pricey for any business. But charging an electric car is 3.5 times cheaper than refueling conventional cars, according to EnergySage. Charging a compact sedan, for example, costs $0.04 per mile compared to $0.14 to refuel gas per mile. 

You can also reduce the cost of charging EVs by taking advantage of off-peak energy tariffs, using smart meters, solar energy, and smart battery management. Given electric cars have fewer mechanical parts, they are less likely to break down. This means reduced maintenance costs and downtime, so employees stay productive. Businesses also save vast sums of money driving EVs, thanks to tax exemptions offered by the government. 

Available EV Charging Incentives

The federal tax incentives for EV charging apply to home and workplace chargers. For tax credit purposes, it is, therefore, crucial to understand how home and public chargers differ. Note that home charging kits range from level 1 to level 2. Level 1 chargers are slow and function using the standard outlet, while level 2 chargers require a 240-volt outlet. 

For businesses looking to invest in EVs, a level 2 charger is ideal, but experts recommend DC fast chargers for fast charging. Currently, the federal government is giving a 30% reduction of the total cost of EV charging hardware and installation. Tax incentives for workplace charging apply to level 2, DC fast chargers, and vehicles to grid charging. 

Electrified Fleet Shows Corporate Social Responsibility

Purchasing an electric car for your business demonstrates to consumers and potential employees you’re committed to corporate social responsibilities, like fighting climate change through the reduction of carbon emissions. You also protect employees from chronic diseases caused by toxic car fumes when driving. As a result, you attract and retain the best talent and customers. That’s because today’s consumers and employees want sustainable products and business practices, including transportation to reduce their carbon footprint.   

The electric commercial vehicle sector is gaining momentum thanks to increased demand for low-emission commuting from businesses. Apart from reducing carbon emissions, shifting to EVs can benefit your business. Compared to conventional vehicles, electric cars are low maintenance and cheaper to recharge. Businesses also enjoy charging tax incentives and improving their credibility by demonstrating corporate social responsibilities.