With consumer demand for electric vehicles appearing to
reach a plateau for the moment, automakers are finding new
customers for their EV stock: daily rental, corporate, and
government fleets. And the top seller into those fleets is Tesla
— constituting nearly one-third of fleet purchases of EVs over
the trailing 13 months.

This makes a certain sense, as Tesla is
building EVs at volumes unmatched by any other OEM. But other
brands are joining the fleet fray as well. Exposing consumers to EV
technology via rental cars and corporate fleets can be seen as a
savvy marketing move — especially for a legacy OEM trying to nibble away at Tesla’s
dominant market share.

As for individual models, the Tesla Model 3 is
the No. 1 EV nameplate sold into fleets. The Tesla sedan is a key
element of an ongoing deal between Tesla and Hertz for the
automaker to supply 100,000 units to the rental car company.

Recent S&P Global Mobility registration
data show the Tesla Model 3, Chevrolet Bolt, and Tesla Model Y as
the three highest registered EVs for fleet use for the trailing 13
months through July 2023. Fleet sales are often sporadic and timed
to certain buying cycles. For instance, Tesla sold more than 13,500
Model 3s into fleets in December 2022 and January 2023 combined and
had spikes of about 4,300 units in both July and October 2022, but
otherwise, fleet sales have been relatively low-key.

Similarly, the Chevrolet Bolt has seen
significant year-over-year increases in fleet sales in 2023, while
both the Hyundai Kona and Polestar 2 showed fleet spikes in June
2023.

Note:
Graphic shows only the top 20 models

Source:
S&P Global Mobility new vehicle registrations to fleets, July
2022-July 2023

©2023
S&P Global Mobility

Offering
EVs as rentals doesn’t just benefit automakers. There is growing
popularity among rental fleet firms to offer trendy new vehicles to
their customers. An EV rental offers a novel experience instead of
the standard sedan, crossover, or minivan. It provides a way for
renters, who might be EV intenders, to experience the EV lifestyle
before fully committing to acquiring an EV. This could be
especially true in courting women buyers,
who vastly trail men in crossing the chasm to EV ownership,
according to S&P Global Mobility analysis.

As such,
the potential customer can sample the instant torque and one-pedal
driving, as well as the real-world range of
the EV, separate from a dealership test-drive. Additionally,
customers can experience the public charging
infrastructure. For example, the difference in Level 2 vs Level
3 charging, charging speed, Tesla vs CCS (Combined Charging
Standard) charging, as well as downloading the various phone apps
to access chargers — all of which have significant learning
curves compared to the familiar gas station model.

Source:
S&P Global Mobility new vehicle registrations to fleets, July
2022-July 2023

©2023
S&P Global Mobility

Commercial
and Government Fleets

Corporate
and government fleets are also demonstrating the implementation of
electrification initiatives to reduce their carbon footprint and
align with sustainability goals by acquiring EVs. The increase in
EV registrations indicates a commitment to transitioning their
vehicle fleets to more environmentally friendly options.

The
Chevrolet Bolt alone represents 39% of government EV fleet
registrations for the trailing 13 months as of July 2023. That is
as much as the entire Ford brand’s government EV fleet
contributions of the F-150 Lightning, Ford Transit, and Ford
Mustang Mach-E.

Source:
S&P Global Mobility new vehicle registrations to fleets, July
2022-July 2023

©2023
S&P Global Mobility

Automakers
and fleet owners have been collaborating to ensure they provide EVs
designed to meet the specific needs of fleet use — such as
range, charging time, and passenger capacity. This collaboration
has led to the development of products such as the Rivian EDV
(electric delivery van), GM’s BrightDrop, and Ford Transit EV. The
US Postal Service also has a purpose-built EV on order from Oshkosh
Defense.

The
commitment of fleet companies and automakers to collaborate on
specialized EV models reflects a collective effort towards a
greener and more sustainable future. As the EV market continues to
evolve, these initiatives mark a pivotal moment in the transition
towards cleaner transportation solutions.

LEARN MORE ABOUT
ELECTRIC VEHICLE TRENDS FROM OUR LATEST INSIGHTS AND
SOLUTIONS

WILL THERE BE TOO MANY
EVS ON THE SHELF?

SUBSCRIBE TO OUR TOP 10
INDUSTRY TRENDS NEWSLETTER

THE EVOLUTION OF THE EV
CONSUMER

WHEN WILL THE HEARTLAND
EMBRACE ELECTRIC VEHICLES?

FOR MORE AUTOMOTIVE
PLANNING AND FORECASTING INSIGHTS

This article was published by S&P Global Mobility and not by S&P Global Ratings, which is a separately managed division of S&P Global.

• SEO Powered Content & PR Distribution. Get Amplified Today.
• PlatoData.Network Vertical Generative Ai. Empower Yourself. Access Here.
• PlatoAiStream. Web3 Intelligence. Knowledge Amplified. Access Here.
• PlatoESG. Carbon, CleanTech, Energy, Environment, Solar, Waste Management. Access Here.
• PlatoHealth. Biotech and Clinical Trials Intelligence. Access Here.
• Source: http://www.spglobal.com/mobility/en/research-analysis/tesla-is-most-popular-ev-brand-for-us-fleet-companies-.html