5 Questions to Beatrix Keim

When wanting to make the switch to electric vehicles, there is a lot that needs to be considered. Beatrix Keim, director of CAR Center Automotive Research, brings a wealth of experience from her extensive career in the automotive industry, across multiple markets including Germany and China. Her foresight drives innovative discussions on topics such as e-mobility and sustainable fleet management. In this blog post, we speak with Beatrix Keim where she delves into the multifaceted challenges and opportunities of adopting electric vehicles in corporate fleets, offers her expert perspective on government policies, digital transformation, and the critical infrastructure development needed to support this transition.

What are the primary challenges faced by companies in the widespread adoption of electric vehicles (EVs) in corporate fleets?
The primary challenges include the higher upfront costs of EVs and the inconsistent availability of incentives across regions. While countries in the EU provide support for EV adoption already for some years, others, such as the U.S. and parts of South America and Africa, are a bit behind in incentivising zero-emission vehicles. Additionally, the infrastructure for parts, repairs, and maintenance is still underdeveloped, with many mechanics lacking the training to service EVs. There's also uncertainty around the handling and towing of battery-powered vehicles due to safety concerns as well as knowledge gaps and persistent myths, such as range anxiety, that contribute to hesitation. Furthermore, companies, particularly smaller ones, face economic risks and difficulties in managing the total cost of ownership (TCO).

How can the transition to electric vehicles create opportunities for companies and their corporate fleet? 
Despite the challenges, transitioning to EVs offers significant opportunities for companies to modernise their fleets and enhance their sustainability credentials. Adopting EVs helps reduce emissions, improves a company's public image, and attracts sustainability-focused customers and employees. Companies can also benefit financially through reduced taxes and operational savings over time. Although the initial investment is higher, the long-term benefits – such as meeting ESG goals and appealing to a climate-conscious market – can provide a competitive edge.

What role does government policy play in influencing the adoption of electric vehicles in corporate fleets? Can you highlight any global differences in these policies and share examples of best practices or leading countries in EV adoption?
Government policies play a critical role in driving EV adoption. China is leading the way with substantial government-backed incentives, while the U.S. has introduced policies like the Inflation Reduction Act (IRA) to promote clean energy. However, the U.S. faces slower adoption due to its driving culture and self-sufficiency in oil and gas. In Europe, the situation is mixed, as national-level policies can conflict with EU regulations. Norway is considered a leader in EV adoption which is largely driven by their governments policies offering strong incentives, robust charging infrastructure, and tax deductions. Governments must balance financial incentives with long-term sustainability to avoid overspending, as tax-funded incentives can strain economies if not managed carefully.

How do you foresee the role of digital transformation in accelerating the adoption of electric vehicles in corporate fleets?
Digital transformation will be instrumental in boosting the efficiency of EV fleets. Technologies such as automated driving assistance systems (ADAS) and predictive maintenance tools allow companies to track and maintain their vehicles more effectively, reducing downtime and repair costs. These tools will also extend the lifespan of EVs, making them more cost-effective in the long run. By integrating these technologies, companies can manage their fleets more efficiently, which is especially beneficial for large corporate fleets looking to optimise operational costs and sustainability efforts.

In what ways can the adoption of electric vehicles contribute to a company's sustainability goals, and what infrastructure challenges need to be addressed?
Adopting EVs is key to achieving a company’s sustainability goals, particularly under ESG frameworks. EV adoption demonstrates a commitment to reducing emissions and environmental impact, which can enhance a company's reputation and attract both customers and employees. To achieve this effectively, businesses and individuals need clear guidance and a solid understanding of how different vehicle types and driving behaviors align with sustainable transportation strategies. Moreover, infrastructure remains a major challenge. Governments, OEMs, and energy providers must collaborate to ensure the availability of charging stations and standardisation of technology, such as charging plugs. Additionally, transparency around the costs of charging is needed to make EV adoption more accessible and affordable for businesses and individuals alike. Ultimately, companies need to communicate their sustainability efforts clearly—do good, and make sure to talk about it! Share your progress and goals through sustainability reports to maximise the impact.