At the 2023 IPWEA Australasian Fleet Conference, Vince White, General Manager at QFleet, shared the work they are doing to help QLD government fleets switch to low emission vehicles. Managing a fleet of 10,000, they have identified 3,600 ‘eligible’ vehicles that will become electric cars by 2026.
White explained how the appetite for electric fleet cars has changed over the last few years. They have seen attitudes move from, ‘it won’t work’ to ‘we can make this work’ in a short space of time. When the departments take the time to trial an EV, they quickly realise that it can work for them.
According to White, demand isn’t the issue anymore. People accept the EV revolution has started and are embracing the transition. Initial objections like range and charging infrastructure are being managed with education and test drives.
During the presentation White shared the QFleet operating model and explained that they need to provide a commercial return for their activities. Historically their competitive advantage was buying power which provided agencies with competitive lease rentals and a profit for QFleet.
The supply issues since 2020 have changed the market dynamics. QFleet are now making money in the used car market. And the profits from the strong used car market are being used to offset the higher costs of electric vehicles and charging infrastructure with subsidised programs for their customers.
As departments transition to zero and low emission vehicles, QFleet is also having the conversation about fleet size and utilisation. The goal is to implement EVs without increasing the overall fleet running costs.
Government departments are now talking about fleet optimisation which means exchanging 15 ICE vehicles for 10 electric ones. Optimising the fleet means QFleet are setting targets for electric vehicles as a percentage of the total fleet rather than looking at the number of cars and SUVs.
As of March 2023, there are 674 electric vehicles on the fleet and by June 2024 they are planning for 2,439. With a strong commitment to the transition, QFleet are placing bulk orders with manufacturers to secure supply. If the EVs arrive, they’ll find a home for them. Supply is still a challenge though the firm commitment of orders sends a signal to manufacturers that Australia is ready.
