The New Zealand government’s Clean Car Discount and Clean Car Standards policy is supercharging fleets to go electric, with listed  vehicle fleet management company FleetPartners reporting that half of its order pipeline is for EVs and hybrids.
The fleet manager, which operates in the Australian and New Zealand markets, took $322 million in total new business writings for half-year ended 31 March 2023 and is a significant player in the vehicle fleet space. FleetPartners claims to be the leading FMO (fleet management organisation) in New Zealand.
In its half-year ended 31 March 2023 report, FleetPartners says that 17% of new business writings in 1H23 were orders for EVs across Australia and New Zealand. The concentration is highest in NZ because, the company says, of its fuel efficiency policies.
“Transitioning to EVs is a key priority for most customers, however the high whole-of-life costs and lack of suitable EVs such as utility vehicles, create significant barriers,” the company says.
“The NZ Gov’t is further progressed with the Clean Car Discount and Clean Car Standard policies designed to address affordability and supply availability, respectively.
“The (Australian) government has introduced the Electric Car Discount policy to help with affordability however a Fuel Efficiency Standard is not expected until Dec-23.
“As the EV transition gains speed, it is expected to be a catalyst for fleet outsourcing given customers’ lack of inhouse expertise (i.e. charging) and obsolescence concerns.”
On novated leases the report notes “Electric Car Discount [NZ] stimulating strong demand for BEVs and PHEVs”
FleetPartners notes the EVs will actually expect to have a net positive impact on their revenue. The report notes that EVs typically have higher purchase prices which generate greater net interest margins.
It notes that while maintenance costs are typically lower resulting in lower maintenance income, the additional revenue from interest plus the fact that they believe the EV transition will be a new catalyst for outsourcing fleet management, the company’s gross revenue from EVs will actually be higher than from ICE vehicles.
In its report FleetPartners sees EVs as strategic opportunity for growth. The report notes “Transition to EVs emerging as growth driver and expected to accelerate customer decisions to outsource.”
New Zealand’s electric vehicle policies are having a big impact with EV market share soaring from 4 per cent to 20 per cent in recent months.
Daniel Bleakley is a clean technology researcher and advocate with a background in engineering and business. He has a strong interest in electric vehicles, renewable energy, manufacturing and public policy.