Purchase incentives, exemption from company car tax, virtually zero maintenance costs, a growing number of charging stations in public spaces, etc.: everything suggests that electric vehicles are carving out a place for themselves in company fleets. With 17,130 vehicles registered in 2018, electric vehicles
now represent 2% of company fleets in France and have seen significant growth in recent months (OVE). What are the associated costs compared to internal combustion engine vehicles? In what situations is it financially advantageous to choose electric?
Cost comparison
Based on manufacturers' list prices, a comparison of purchase prices shows that electric vehicles are 1.5 times more expensive than internal combustion engine vehicles. Added to this is the cost of installing an electric charging station (€700 on average).
Following a study conducted using data from a fleet managed by FATEC Group, a comparison of maintenance costs between an electric car and a combustion engine car revealed two key findings: when considering their use over the same contract duration, the electric car resulted in maintenance costs four times lower; while the analysis per kilometer driven showed identical maintenance costs. The difference in costs over the duration is partly explained by the difference in mileage (the electric car was driven four times less than the combustion engine car over a 3-year contract). Furthermore, comparing maintenance expenses between a Zoe and a Clio, and between an electric Kangoo and a combustion engine Kangoo, revealed that maintenance visits were significantly less frequent over the electric vehicle's lifespan.
In the same fleet, the average €325 spent over 3 years at the garage for an electric vehicle certainly relates to a change of tires; compared to abundant spending on mechanical parts for diesel and petrol cars.
Since electric vehicles are best suited for short trips, their mileage remains lower than that of internal combustion engine vehicles. However, the difference in maintenance costs is also explained by the technical composition of electric vehicles, which require less maintenance. For example, " their automatic transmissions have few complex mechanical parts that could break. The clutch, exhaust system, particulate filters, and timing belt are absent in electric motors; whereas these components are very expensive to maintain in diesel or gasoline engines ," explains Jean-Guilhem de Lanlay, sales representative and electric vehicle specialist at FATEC Group. Furthermore, the so-called "dynamic" braking system uses kinetic energy (the car's momentum) to recharge the battery, creating a magnetic resistance effect that slows the vehicle. The positive externalities of this regenerative braking are twofold: the vehicle's range is increased by 10%, and the brake pads are barely used.
Finally, an estimate calculated based on data from parks managed by FATEC shows that the energy for an electric car (charging + battery) costs on average €11.41 per 100 km traveled, compared to €8.69 for a diesel car (average consumption of 6.25L/100km and average price of diesel at €1.39/L). Electric charging has an average cost of €2.90;
Added to this is the average battery cost of €8.41/100km (calculated based on Renault's rental rates). For leasing, manufacturers offer annual mileage packages: for a purchased Zoe, for 7,500 km driven per year, the battery is leased at €69/month; for 12,500 km, €89/month; and so on. Leasing includes free roadside assistance and battery replacement if its capacity drops below 75%. Whereas, a new battery costs on average €10,000 (source: auto-moto) and comes with an 8-year or 160,000km warranty (replacement if its capacity falls below 66%).
Comparison of uses
Although cost estimates are nearly identical, their uses differ significantly. For example, electric vehicles in professional settings are better suited to car-sharing fleets with known and predictable routes, rather than to the routes of salespeople crisscrossing France. Routes between sites within the same company or city are easily monitored. In these cases, the fleet manager can ensure that each vehicle is parked and plugged in at a specific location at the end of the day. Furthermore, electric vehicles will truly prove their worth for short trips, replacing internal combustion engine vehicles that are driven infrequently and whose maintenance and fueling are burdensome for everyone involved.
However, practical realities sometimes hold surprises. For example, a construction company decided to replace diesel cars with electric vehicles for commuting between the office and construction sites, without anticipating that its night shift workers were accustomed to using their car headlights for illumination: a technique that works with internal combustion engines but quickly drains the electric vehicle's battery. In another case, employees authorized to drive their company vehicles home would have no way to recharge them each night.
Finally, in addition to the comfort and savings generated, electric vehicles can also be a way for a company to send a message. A boss who drives a Tesla, a quiet site, charging stations in front of the building entrance: these are all elements that can contribute to a brand image, to a conviction of eco-responsibility assumed by a business group; and moreover, contribute to the comfort of employees.
FATEC Testimonial
" To implement electric vehicles, you must first consider the use, the routes, the distances and the roads that the electric vehicle will use, taking into account all possible scenarios, "advises Aurélie Carayon, account director at FATEC Group.
FATEC Group regularly conducts analytical studies on its customers' spending and vehicle usage habits to optimize their costs.
