The Rise Of EVs In Corporate Fleets

The rapid growth in sales of electric vehicles (EVs) in Australia might have tapered from recent record levels, but that doesn’t mean this new motoring frontier isn't advancing fast.

We're predicted to see 17 million in sales by the end of 2024. Electric cars could account for 20% of total car sales by then

and Australian EV sales up to the end of the third quarter have edged past 70,000 units, pushing the total number on our roads past the quarter-million mark.

Whatever the ebbs and flows, EVs are here to stay – and fleets are driving the demand. The Commonwealth Bank recently reported a staggering 235 per cent year-on-year jump for business loans for EVs in 2024

. Vehicle leasing and fleet-management providers like FleetPartners say the number of people choosing an EV via novated lease is growing fast

.

So, what's driving the push to fleet electrification? We examine the trends.

More options, better options, cheaper options

It wasn't that long ago there were just a few EVs, in a tiny number of configurations that weren't always useful to every buyer. And they were perceived as expensive. In 2024, however, there are now about 100 different EVs on offer, kicking off from -$30,000 mark

. They span pretty much every corner of the market, from the small/medium/large car and SUV segments to the people mover, 2WD ute and van classes. Only the top-selling 4WD ute segment remains an unestablished frontier – but not for long. Today's EVs are also much better than those of just a few years ago, with longer driving ranges, improved performance, faster charging and better battery life. Additionally, with the New Vehicle Emissions Standards law coming into force in 2025, it is expected that manufacturers will add more EVs to their range.

Better charging infrastructure

Under the Australian government's Driving the Nation Fund

, investment in EV charging infrastructure is growing and more public-charging sites around the country are being built. A report by consulting firm Next System showed the number of public EV charging sites increased by 90 per cent in 2023

and that number was expected to double again this year.

While Australia's charging network still lags behind those of many other countries, this belated but accelerated growth is allowing more fleets to consider going electric where previously impossible. Some businesses aren't even waiting for public infrastructure to meet their needs. IKEA is installing charging stations in its own warehouses so its EV fleet can venture into areas with insufficient public-charging capacity.

Incentives are incentives

The Federal Government's EV Discount policy

, introduced in 2022, continues to give businesses a big incentive to add an EV to the books, most notably an exemption from Fringe Benefits Tax (FBT) for any EV purchased by a company and/or through a salary-sacrifice deal. State governments around the country also continue to offer various sweeteners to encourage businesses to fast-track the move to a sustainable fleet, such as NSW with its EV Fleets Incentive, which offers funding to help eligible businesses purchase EVs and smart chargers.

These incentives only add to the well-established long-term savings in fuel and maintenance that EVs offer over internal combustion engines (ICE) and other equivalents – another big financial carrot if you're managing a fleet.

EVs are good for ESG

Environmental, social and governance (ESG) considerations are a now-ubiquitous part of business, helping companies navigate an increasingly complex regulatory, environmental and social world while building a more positive reputation. An EV fleet can allow a company to reduce its carbon footprint while aligning better with today's consumer, social and market expectations – another incentive many fleet managers in 2025 are finding harder to pass up.

Disclaimer

Viva Energy Australia Pty Ltd (“Viva Energy”) has compiled the above article for your general information and to use as a general reference. Whilst all reasonable care has been taken by Viva Energy in compiling this article, Viva Energy does not warrant or represent that the information in the article is free from errors or omissions or is suitable for your intended use.