FLEETDRIVE
One of QFleet ’ s key initiatives in the Action Plan is the transition of all eligible passenger vehicles to zero emission by 2026 . Notwithstanding the challenges around the supply of electric vehicles in Australia , this key strategy will likely mean that there will be more than 3,600 electric vehicles in the QFleet fleet .
Innovation in procurement
The global pandemic has presented many obstacles for businesses over the past two years , and the motor vehicle industry is not immune from this . The motor vehicle supply chain is experiencing significant disruption to the production of vehicle componentry and the shipping of vehicles to meet increasing global demand .
In response , QFleet is currently pivoting its procurement approach and buying electric vehicles in bulk lots rather than individual orders . Whilst only early days , this approach has proven to be successful .
Historically , QFleet placed purchase orders for new vehicles only when there was a commitment placed by customer agencies . This approach was not allowing QFleet to secure enough electric vehicles .
QFleet has mitigated any potential financial risk by adopting processes to ensure as many vehicles as possible are allocated to leasing customers prior to their arrival in Australia . This has proven to be a success .
If QFleet did not pivot and adopt the bulk buying approach , we would not have secured enough EVs to meet this year ’ s strategy target of 288 EVs .
As well as working closely with agencies , the team have attended multiple public EV association demonstration days and events , often of weekends , to talk with the public about the great work the Queensland Government and QFleet are doing in supplying EVs .
Team initiative
Although EVs have not yet met price parity with internal combustion engine vehicles , QFleet currently provides incentives for customers to promote the early up-take of EVs .
To assist customers with the uptake of EVs , QFleet has implemented a Standing Offer Arrangement for the provision of EV charging infrastructure , removing one of the main barriers for agencies wishing to introduce more EVs into their fleets .
In addition to bulk purchasing , QFleet has implemented interim incentives to provide financial support to agency customers transitioning to EVs , including :
– setting less conservative residual values ( this reduces the monthly lease rate charged to customer agencies )
– providing a rebate to customer agencies to be used towards EV charging infrastructure or reducing the lease rate cost – this is being achieved by reinvesting strong vehicles sales revenue results
– providing free EV recharging units and cables ( 180 allocated During 2021-2022 ).
At end of lease , QFleet EVs are sold at public auction , providing affordable used EV options to community .
ISSUE 38 DECEMBER 2022 / WWW . AFMA . ORG . AU 9