Industry Insights: Expert Q&A, TCO Analysis, and Dealer Network Growth

Did you know that fewer than two percent of new heavy trucks sold in the U.S. today are considered ‘non-polluting?’ The time for eMobility is now.

In this latest issue of Drive Green, we bring you our expert view on the eMobility market, including an exclusive interview on Total Cost of Ownership (TCO) with Melissa Tol-Kampen , eMobility Account Manager; insights on how to build a stronger dealer network; and where you can connect with our team this month!

eMobility in the News

According to Nick Antoniou , Global Commercial Lead, eMobility at DLL,

"The transition to eMobility is integral to future growth in the logistics sector. DLL is seeing increased interest from the market with regards to investing in electric commercial vehicle adoption, driven by both environmental concerns and long-term cost savings."

In our latest blog , read more about the road to net-zero, including:

• The current state of the eMobility industry
• Overarching impact of new industry regulations
• How identifying where improvements could be made helps define the financial commitment over the short and the long-term.

Expert Spotlight: Transitioning to an EV Fleet – exclusive Q&A with Melissa Tol-Kampen, Account Manager, eMobility

Melissa, who has been with DLL for three years, with four years at our parent company, Rabobank, shares her learnings and experiences working with customers who have transitioned to an EV fleet.

“After graduating, I started at a captive leasing company and worked there for five years. Because the company relocated their department to Germany, I decided to take on a new job at a bank to develop my banking experience and broaden my horizon. After eight years of banking experience and working within the Rabobank Group, I saw a job opening with DLL which also allowed me to work in an international role and environment. It’s a pleasure and privilege to work with our amazing partners and my DLL colleagues,” says Melissa on her career journey and path to DLL.

What is the common thread among customers who have transitioned to an EV fleet? What were their main financial concerns and how were they addressed?

Electric vehicles come with big investments and margins for dedicated transportation business is thin, and therefore, TCO is an extremely important topic while deciding on EV trucks.

I’m working with multiple companies transitioning to an EV fleet. Everyone going through this process faces the same challenges. Primarily, they are concerned or curious about the range of the battery and how and where they can charge. Charging can be quite the challenge, especially where I am based in the Netherlands, as there are areas where there is congestion and companies cannot get access to the grid.

This has multiple impacts:

1. The planning for charging your fleet depends on external charging facilities.

2. This results in a less predictable planning for your transport (mainly transportation companies have this issue) because companies don’t know when to charge and at what price.

3. The price of charging is higher than it would be at your own location. The investment of EVs can be up to three times higher than diesel assets. We now see purchase prices decreasing, but still at a higher level than diesels. When we look at transportation, specifically companies that have transport as their core business, the margins are thin and it’s all about the capital investment. Meaning the TCO is extremely important to make sure the company has a positive revenue. When we look at companies that can transport their goods for you (as part of the service), the TCO is less important. They like to have a green asset, or often need to have the vehicle to deliver the goods in emission free zones.

What are the most compelling financial benefits of transitioning to an EV fleet?

Lower Operating Costs

If you can charge at your own location, the costs for an EV fleet are less than a diesel fleet. In addition, in most cases, maintenance is lower on an EV asset than a diesel one. Besides the fleet, there can also be a benefit as companies with an EV fleet generate more business based on their sustainability efforts, which they otherwise wouldn’t have had.

Potentially Higher ROI

We see a lot of large multinational companies, as well as governments, requesting sustainable transport that are willing to pay more for it because they know Return on Investment (ROI) is higher.

We noticed it with a company driving for a large supermarket in the Netherlands. The request was to transport with an electric truck, and they were able to get paid more because the electric truck has a higher purchase price, which led to a higher transport price. Companies are willing to pay a higher price if it can help them in their sustainable goals as well, as they focus on scope 1, 2 and 3 emissions. I also see it in the last mile delivery segment. Companies want to have their orders shipped in a green way, meaning the whole journey from the sender up to delivery on your doorstep needs to be sustainable.

How does the TCO of EV fleets compare to traditional ICE vehicles for your clients? What are the most significant cost differences you've observed?

For many companies, the most significant cost difference is the initial purchase of an EV, which is much higher. But also, the struggle with the driving range and how vehicles and routes can be managed to make sure it’s the most efficient way.

The TCO of an EV fleet is still higher than a traditional ICE fleet. But I do see a shift in the Netherlands, as the government is pushing with subsidies, and will be charging tax on ICE vehicles as of 2025. This means the difference between an EV and ICE asset will become more comparable, leaving only the variables like charging and maintenance to make the difference in the TCO.

More on our blog .

Building a Stronger Dealer Network for EV Manufacturers

As the eMobility market continues to grow, the success of electric vehicle (EV) manufacturers hinges on more than just innovative technology and sustainable solutions. A robust dealer network plays a crucial role in accelerating the transition to electric and hydrogen transportation.

Financial solutions tailored to the needs of the EV market can significantly alleviate the challenges faced by OEMs and dealers, including:

• Leasing and finance options
• Floor plan financing
• TCO calculations

A strong dealer network, supported by tailored financial solutions, is essential for driving market adoption and achieving long-term success. By understanding the current eMobility landscape and leveraging strategic partnerships, OEMs can position themselves at the forefront of this exciting industry transformation.

Read our blog on how partnering with DLL can bring several advantages to OEMs and dealers looking to strengthen their presence in the EV market.

Coming Up

DLL will be attending IAA Transportation in Hannover from September 17-22, 2024. If you're attending and would like to set up a meeting, click here .

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