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PHH Arval Alternative Fuel Vehicle (AFV) Study Part 2: Electric vehicles

October 17, 2012

By Sarah Mallonga, Project Manager, PHH Arval Strategic Consulting

This blog post is the second of a series of analyses of alternative fuel vehicles developed by PHH Arval's Strategic Consulting group. Here we take a look at electric vehicles – the ideal fleet scenarios, as well as pros and cons of including them in your fleet.

Electric vehicles

Electric vehicles (EVs), also known as battery electric vehicles (BEVs), operate on an electric motor that converts electricity, stored in a battery pack, into mechanical power that runs the vehicle. The battery pack is recharged by being plugged into the local power grid.

The idea scenarios for including electric vehicles in a fleet include:

Pool or plant vehicle applications
Depot-style delivery routes
Niche market applications with small driving distances (e.g., urban delivery services)

The following are some of the pros and cons of these vehicles:

Electric Vehicles
Pros	Cons	Additional considerations
Zero emissions from vehicles Reduction in powertrain preventive maintenance Low component wear results in less downtime and maintenance Decreased fuel costs, especially when off-peak electricity rates are utilized Some EVs qualify for HOV lane access in certain areas	Much higher initial acquisition costs than conventional vehicles Driving range “anxiety” Costly battery replacement Battery weight limits payload; battery size limits seating and cargo Technology still evolving Limited availability of public charging stations	Lower resale expectations compared to conventional vehicles Life cycle emissions of EVs depend on sources of electricity used to charge them Uncertain impact on the power grid Cost of onsite charging infrastructure varies; multiple vehicles deploying from same facility could require costly upgrade

For a more detailed analysis of the alternative fuel vehicles that would be best suited for your specific fleet, please contact your PHH Account Team.

Related blog post: Hybrid electric vehicles and plug-in hybrids.

Next up in our series: natural gas vehicles.

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