Project Description

Plugit EV Business Planner – improved revenues

Point 1. Availability of commercial electric vehicles

Because of the strict global CO2 objectives, traditional automotive OEMs were forced to convert their roadmaps and factories green by 2021. Transformation started from personal vehicles, next on the line are commercial vehicles. Shift has been relatively quick, together with improved battery technology (life-time and range).  Today automotive OEMs have the capabilities to produce electric vehicles of all kind.  More importantly, have the actual vehicles out in their retail enabling commercial transportation companies converting their fleet to green.

Point 2. Competitive pricing

Chinese vehicle manufacturers, supported by local battery companies, have been paving the way by introducing numerous new electric vehicle models for many business segments. And not just introduced; sold hundreds of thousands of them, first to their huge home market then globally. Chinese rush has created vehicle body shops and  battery factories around the globe. Traditional OEMs are in a hurry responding this competition, especially in heavy-duty vehicles.

Point 3. Front runners show example

Next, automotive industry is seeking new ways to sell the electrifying fleet to customers, whose business is not ready to digest them without consideration. Even if they would be cheaper.  Typically, the users of the commercial vehicles are not ready with their maths; how robust this new technology is or how it would enable them to twist their business models for improved profitability or even generate new business opportunities?

Bus line and taxi operators have taken the lead now and are electrifying their fleet rapidly. For few years they have gathered early operational experience by using electric buses on their main bus lines as well charging them on depots and terminals. This early experience, working in various business critical environments, has demonstrated that the quality of the new EV technology is solid and can finally be a serious investment with ROI. Due to fast break-throughs in bus and taxi businesses, EV technology is now spreading out into new segments such as garbage trucks, medium size trucks, last mile distribution etc. Those businesses are traditionally very cost sensitive with high investments and low margins. In other terms total cost of operations must be optimized during the whole length of the commercial contract.

Point 4. Commodity

The fact is the commercial vehicles are becoming commodity faster than expected. New commercial electric vehicles are already in use and able to execute their daily transportation operations on-time. Quality of the vehicles is acceptable and the life-time cost is significantly lower than traditional combust engine vehicle. Now, it becomes more difficult for traditional OEMs to request higher price and brand value against low segment competition and market push. When power line is changed to electric, value of the most advanced diesel engine and transmission box will disappear overnight. Traditional OEMs must find new customer value for their brand.

Point 5. Towards sustainable digital ecosystem

The key for success on future transportation industry is, that the vehicles they are using enable higher profitability, balanced OPEX-CAPEX and new sustainable services. Biggest single factor for higher profitability in transportation is the digitalisation of end-to-end business. Electrified fleet requires seamless integration of charging systems and Transportation Operations System  (TOS) to support this transformation and extend digital services outside of the vehicle.

Summary of components required building future proof sustainable digital transportation ecosystem are:

  • Electric fleet
  • Intelligent, multi-purpose charging system with standard APIs
  • TOS which enables dynamic fleet management and open APIs
  • Mixed fleet solution during the transition time
  • Plugit Cloud as digital service platform

Plugit EV Business Planner is the right tool when considering eMobility business.