Electric vehicles are helping to drive energy- and cost-efficiency outcomes for businesses across Aotearoa. Low operating costs offer a substantial incentive to make the switch to EVs, but as with any big change, the transition requires careful planning.

If you’ve been tasked with leading the switch to EVs for your small to medium business, this guide will help you get started. 

Understand the benefits

  • Low running costs

    Electricity is much cheaper per kilometre than petrol or diesel. For businesses with high mileage fleets, the savings quickly add up. On average, EVs cost around 40% less to “fuel” than conventional vehicles.1

  • Low maintenance

    EVs are a lot simpler to maintain than petrol or diesel vehicles, meaning less downtime and lower service costs for your fleet. Because electric vehicle motors have so few moving parts there is less to maintain or go wrong. The latest EV batteries have very good warranties and are built to last for the lifetime of the vehicle. 

  • Low emissions

    Reduce your carbon footprint, and show your customers that you’re committed to a cleaner future. EVs emit 90% less CO2 than petrol vehicles when driven in New Zealand thanks to our highly renewable electricity grid.2

Key components for a smooth transition to EVs

  • People — Keep your team on side by bringing them along for the ride.
  • Data — Get a better understanding of how your current vehicles are used.
  • Financial strategy — Factor all costs into your business forecast, and consider options such as leasing vs owning.
  • Market intel — Do your research to get the best deals on vehicles.
  • Charging — Tailor your EV charging solution to fit your business needs.

Bring your team along for the ride

Switching to EVs isn’t just about technology — it’s about people. Your team’s support and engagement are key to a successful transition, especially when company vehicles are part of their daily routine or benefits package. By involving employees early, addressing their concerns, and highlighting the benefits, you can help ease the transition to EVs and create a smoother, more accepted change across the team.

  • A successful transition requires input from many parts of your business. Finance, operations, communications, property/facilities, fleet and HR. Senior leadership needs to be aligned and actively advocating for the transition.
  • Keep communications open, and be prepared for curly questions from staff around range anxiety, charging, performance and safety.
  • Start with a pilot programme where a small group of employees (your champions) uses EVs before rolling out the transition company-wide.
  • Gather feedback from your champions and use their positive experiences to influence more hesitant employees. 

Analyse vehicle use data

Understanding your fleet data is foundational to unlocking the potential of EVs within your business, helping you build a strong business case for the transition.

By analysing how your vehicles are used — daily distances, routes, idle time, and fuel consumption — you can identify where EVs could seamlessly fit, while also uncovering opportunities to improve efficiency.

This data-backed approach will help you figure out key needs for replacement EVs, like range and performance, while also highlighting potential cost savings, emissions reductions, and even opportunities to downsize or better utilise your fleet. With solid data in hand, you can confidently make the case for change and plan a smooth transition.  

  • GPS tracking is the easiest and most comprehensive way to collect vehicle data, but for smaller fleets, you could look at fuel card data and survey your drivers.
  • Analyse trip start and return times to understand vehicle usage patterns and peak times.
  • Calculate the average length and duration of trips to get an idea of the range you would need on electric vehicles.
  • Consider where vehicles are travelling — do you need vehicles suited for urban or rural terrain?
  • Determine parking times and locations — this will help you determine the best charging solution for your team.
  • Once you’ve got a clear picture of current vehicle use, involve your team to get a collaborative solution for increasing efficiencies. 

Consider your financial strategy

There are some key differences between EVs and petrol/diesel vehicles that make it important to think carefully about the financial side of things. Here are some key factors to keep in mind:

  • Total cost of ownership (TCO) — While EVs often have a higher initial purchase price, their lower running costs make them more economical over time. Factor in savings on fuel, reduced maintenance costs, insurance costs; but also the cost of any charger installations required at an office or a home. Use the vehicle total cost of ownership calculator. 
  • Internal budgets — Transitioning to EVs may require rethinking how vehicle costs are funded and allocated within your company. Consolidating budgets across departments to a single budget holder can help decision making.
  • Owning vs leasing — If your business can support the investment, owning EVs offers a wider range of models to choose from and greater flexibility in how long you keep them. Leasing an EV is ideal where a business doesn’t want capital tied up in assets and can spread operating costs over a known fixed term.
  • Green loans — Many financial institutions offer green loans or special financing for businesses investing in EVs, often with lower interest rates. This can improve the TCO over the vehicle’s lifetime.

Given the financials stack up, it became a no-brainer to convert our passenger fleet to EVs.

Nick Robilliard, Meridian Energy

Work out the total cost of ownership (TCO)

Compare the cost of buying, running and on-selling new electric vehicles with hybrid, petrol or diesel alternatives.

Do your homework to get the best deal

To find the best electric vehicle fit for your company, explore available options by researching different manufacturers, comparing key features such as range and charging speed, and considering total cost of ownership. Engage with suppliers to understand pricing and incentives, connect with businesses that have already integrated EVs into their operations, and participate in EV user groups on social media to gain real-world insights and advice. 

  • Explore beyond the traditional automotive brands. As the EV market has developed, newer or less familiar manufacturers have entered which may offer competitive options.
  • Assess the availability of maintenance and support services in the regions where you operate to ensure ease of servicing and any repairs and to maintain your vehicle warranty.
  • Research market trends and sales to identify the best time to purchase and maximise cost savings. 

Helpful resources

Make a plan for vehicle charging

A transition to EVs means a change to how you keep vehicles ‘fuelled up’ and ready for business. Unlike petrol or diesel vehicles, which can refuel quickly at a gas station, EVs require charging infrastructure that aligns with your operational needs. This is where GPS data can really help with where, when, and how your vehicles will charge to ensure seamless daily use.

  • Home charging — If employees take vehicles home to charge, under Worksafe guidelines you must install wall-mounted chargers with the right RCD protection. They provide higher charging speeds for overnight charging, and make it easy to calculate reimbursement for electricity costs.
  • Workplace charging — Installing workplace charging stations for vehicles based at the site allows overnight charging and/or for employees to top up during the day.
  • Public charging networks — Some businesses may rely partially on public charging stations. Consider setting up access to the major charging networks for longer journeys or where there may be limitations at a workplace or home. 

This guide was created with expertise from Nick Robilliard, Head of Procurement and Workplace at Meridian Energy.

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