Addressing the electric vehicle adoption gap for small fleets: A case study of local energy transitions in British Columbia

• There is currently a gap in adoption of electric vehicles (EV) in small fleets. • This study surveys small fleet operators to understand barriers to adoption of EVs. • Barriers are related to cost, incompatibility (real or perceived) and availability of EVs. • Policymakers CAN use targeted programming, such as a bulk-buy, to increase adoption in small fleets. In the transition to replacing internal combustion engine vehicles with electric vehicles (EV), there remains a gap in adoption by small fleets. Researchers and practitioners have posited that this gap may exist for a range of reasons, including: that the fleet electrification is not economically rational, that the needs of fleet operators are too diverse for current market offerings, or that targeted government interventions for this segment are lacking. We conducted a survey (n = 68) of small fleet operators in British Columbia, Canada and categorized the responses into barriers related to cost, incompatibility (real or perceived) and availability. Current EVs are incompatible with the operational needs of some respondents but our results show that, in many cases, the incompatibility is perceived and EVs could meet the stated requirements of such small fleets. We also observed that common customizations to (or “upfitting” of) fleet vehicles can be readily applied to EVs, but specialized use cases must be produced by the manufacturer—which may be a supply-related barrier. We also used a total cost of ownership (TCO) to demonstrate that while economic rationality is generally stronger for lighter duty class vehicles, small fleets that drive longer distances have a greater advantage in electrification. Our findings suggest that government intervention targeted at small fleets, such as bulk purchasing programs, could increase the adoption of EVs in this segment when coupled with purchase incentives. This gap could potentially be filled by local agencies, which can play a critical role in brokering trust between parties involved by being the middle actor at the boundary of government, suppliers, and customers. Lastly, we observe that small fleet operators display some understanding of the TCO of EVs. Incorporating an educational component into a bulk purchase program, as observed in other successful procurement arrangements that we review, could enhance the confidence of fleet operators and ultimately, lead to further adoption.