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For the past few years, electric passenger cars have been making headlines consistently. China, the world’s largest car market, just set records with sales of 5.67 million new energy vehicles (NEVs) in 2022. This means more than one in every four cars sold in China is electrified! The transition to EVs is truly underway globally.

So, the question is, can industrial vehicles be far behind? Do manufacturing industry practitioners start evaluating a transition as well?

The answer is a resounding yes. At least in three key vehicle applications — material handling, short haul, and last-mile delivery — the economics of logistics fleets have flipped to favor electric vehicles. That said, there are still constraints, and differences, in the way EV fleets operate. Manufacturing needs to understand and account for these to set up EV fleets for success. But if you proactively think through these constraints, you will realize substantially lower total cost of ownership (TCO,) happier drivers/operators, cleaner facilities, and long-life vehicles with minimal maintenance needs.

Short Haul Semis: ‘A typical electric semi will have a lower fuel cost than many pickup trucks’

Electric semis just went mainstream with the Tesla Semi making headlines for covering 500 miles on a single charge. However, most people don’t realize that there are already many electric semis in the market, albeit with shorter ranges.

Semis cover several times more miles than do passenger cars. So, running cost is far more crucial for them. And current-generation electric semis have a running cost so low that every fleet owner must take notice. The constraints are more around the range, and highway charging infrastructure. These are not huge barriers to overcome on short-haul routes.

Using Cargo Vans for LastMile Delivery Plays to All the Strengths of Electric Powertrains Over IC Engines.

Electric drivetrains outperform IC engines by the biggest margin in stop-go, low-speed applications, with limited HVAC use, and short total distances. Last mile delivery is exactly that! With energy wastage in idling and braking drastically reduced, Amazon is waiting for its Rivian EDVs, Walmart is already using Ford e-Transits and waiting for Canoo Vans, and so on. GM’s BrightDrop is meanwhile creating a very compelling ecosystem and solution around its vans. In fact, the only shocking part was when USPS chose a largely non-electric solution last year.

In last-mile delivery, all the advantages above apply, but there is not much to watch out for — EVs are simply better at it!

EV Trucks Provide a Clear Advantage for Material Handling

Electric lift trucks are competitive up to 40,000 lb. capacity and are armed with ~75% lower fuel costs/~40% lower maintenance costs — a clear TCO advantage over propane and other lift trucks. This area is most obvious of the three because electric vehicles have been prevalent here for decades. Electric forklifts with lead-acid batteries predate Lithium-ion batteries, although they were used in niche applications. Today, electric lift trucks cover the broad market, with only the niche area of >40,000 lb. capacity left untouched.

Issues in electric lift truck recharging times, longevity, fire safety, and load-bearing capacity have been largely resolved, especially with the advent of LFP batteries. So much so that newer vehicle forms such as automatic guided vehicles are exclusively manufactured as electric-only.

For commercial vehicles used in manufacturing supply chains, multiple factors together create a strong business case:

• Running costs are paramount for commercial vehicles, which undergo heavy use

• Maintenance costs and time matter way more than they do for passenger cars — EVs require fewer maintenance schedules, saving both cost and time

• Rider comfort and low noise levels are distinct advantages for operators who work with the vehicle all day

• Emissions reporting is becoming a necessary part of business. EVs offer an effective way to show emissions reduction while also saving on TCO

• Eco-friendliness is becoming a crucial part of consumers’ purchasing decisions. Electric vehicles send a message that the company is consciously doing its part to reduce its footprint.

While the three segments mentioned above are very clear business cases for EVs, more and more segments are likely to open as EVs mature, bringing about a transition to EVs in manufacturing supply chains over the next decade.