Are Commercial Electric Vehicles a Good Investment?

by Ajay Bali · Published June 10, 2023 · Updated June 3, 2023

A growing number of companies are looking into commercial electric vehicles. CEVs are a desirable alternative because of the volatility nature of fossil fuel prices and the emphasis on switching to cleaner energy.

The market for CEVs may reach USD 848.94 billion by 2030. It will only keep expanding after that. In this article, we’ll look at the benefits of CEVs, their drawbacks, and the case for investing in them for businesses with sizable commercial fleets. By 2030, it’s anticipated that India’s CEV market would have increased by 90% from 2023 levels.

Increasing environmental awareness and regulation

This market shift is being driven by regulations requiring cleaner fuels, decreases in greenhouse gas (GHG) emissions, and the growing consumer attractiveness of doing business with “green” organisations. CEVs are economically advantageous because of their higher ROI potential from reduced maintenance costs and downtime, as well as their zero (or, in the case of PHEVs, negligible) GHG emissions and silent motors, which make them perfect for the stop-and-go nature of last mile deliveries.

Types of CEVs and their benefits

Battery Electric Vehicles (BEVs)

Internal combustion engines, or ICs, are absent from fully electric vehicles, or BEVs. By connecting to a charging station that is mainly powered by the power grid, their substantial lithium-ion batteries may get recharged. Other power sources include solar panels and regenerative braking. BEVs include small automobiles, specialty delivery vehicles, large vans, and trucks.

Plug-In Hybrid Electric Vehicles (PHEVs)

In PHEVs, an electric motor, a lithium-ion battery, and a tiny IC engine are all combined. There are the same charging procedures that apply to BEVs here as well, however with PHEVs, the IC will charge the batteries if they run low. They also have the benefit of having a longer, more reliable range and the ability to be “recharged” at any unleaded petrol station, providing them more flexibility — no range anxiety here. It’s expected that 75% of all EVs would be PHEVs by 2030.

What are the benefits of investing in commercial electric vehicles?

Reduced operating costs and greenhouse gas emissions

CEVs have a higher resale and disposition value, allowing you to keep more of your capital investment.

A thriving used car market

There are numerous websites that list CEVs for sale. Rather than selling privately, many businesses prefer to trade up to the latest and greatest, creating an appealing and dependable option for potential buyers.

Reduced operating expenses

The operating cost differential between CEVs and IC vehicles (including acquisition costs) will continue to narrow. CEVs will likely haul the majority of commercial freight within a decade as capacity and range improve.