What Your Business Needs to Know About EV Fleet Electrification?

What is Fleet Electrification?

Fleet electrification is about making the shift from internal combustion engine (ICE) vehicles to electric vehicles (EVs) in fleets used by businesses or governments. But it’s not just a simple swap; it changes the entire way your fleet runs, from how you plan routes to how you manage energy. With EVs, you're no longer dealing with fuel tanks; you can top up at any highway stop. Charging takes time and planning, so everything from daily operations to long-term growth needs to be thought through more carefully. It’s a whole new way of thinking about mobility.

As more companies and countries aim for zero emissions, using EVs is becoming necessary. But it's not as simple as replacing one vehicle with another. It requires changes in infrastructure, how energy is managed, how teams operate, and how workers are trained.

What Happens to Existing Fleets?

As more new vehicles added to fleets are electric, we're already seeing the shift take shape. Over the next few years, the makeup of many fleets will change, with EVs gradually taking the place of traditional fuel-powered vehicles. With that change comes a new set of tools, skills, and considerations.

Managing an EV is different. Drivers are now keeping an eye on battery levels instead of fuel gauges, and mechanics are dealing with software updates alongside hardware. Charging takes longer than fueling, so route planning and scheduling become more precise. Fleet managers are still learning to balance both ICE and EV operations during this transition.

Starting a New Electric Fleet? Here’s What You’ll Want to Think About

Starting an electric fleet isn’t just about swapping diesel buses for electric ones, it’s really about rethinking how your whole operation runs. And that starts with one big piece: charging.

Where will your vehicles charge? Will you need fast chargers or overnight ones? How many will you need, and who’s going to manage them? These choices don’t just affect your day-to-day; they’ll shape how smoothly you can grow your fleet in the future.

Once that’s figured out, energy planning becomes the next big thing. Just to give you a sense of scale, a single electric bus can use up to 150 kWh per charge. That’s a lot of energy being pulled from the grid, and without the right tools to manage this, your electricity bills can spike quickly. But if you plan it right, you can not only control costs but also tap into incentives like India’s FAME II scheme (which gives subsidies for electric buses if you meet certain criteria).

Of course, all of this is new territory for many teams. If you’re coming from an ICE fleet, there’s going to be a learning curve. But it’s not as overwhelming as it sounds and there are now tools and methods that can make this shift way smoother.

You’ll need to start asking:

• Do we want to build our own charging station or rent one?
• Should we lease or own the fleet?
• How do we know if we’re using energy efficiently?
• Can we track how much electricity we’re losing to things like transmission?

That’s where something like Kazam’s fleet software can really help. It brings all your operations—route planning, bus scheduling, energy tracking, real-time bus status, and charging data and all into one place. It also lets you react fast. Say a bus is stuck in traffic or needs an unexpected charging stop, you can reroute, reassign, and keep things moving, without scrambling.

Companies like GreenCell, JBM, and PMI are already running electric-first operations, and they’ve helped shape tools like this through real feedback and use cases. So you’re not starting from scratch, you’re building on what’s already working.

Yes, switching from ICE to EVs is a change. But with the right planning and the right tools, it’s a change that sets your fleet up for success, not just today, but for the long haul.

Why Smart Energy Use Matters?

Electric fleets don't buy fuel, they buy electricity. But if that energy isn't managed well, it leads to major problems: high utility bills, long charging waits, and fewer working vehicles.

To understand the impact: imagine a fleet of 100 electric vans, each using 50 kWh per day. At ₹10/kWh during normal hours, the daily cost is ₹50,000. But if charging happens during peak hours at ₹13/kWh, the same energy costs ₹65,000 an increase of 30%. Over a month, that’s ₹450,000 in avoidable expenses.

Without tools like Kazam, these hidden energy costs add up fast.

What to Consider When Switching to an Electric Fleet

Moving to EVs is more than just changing vehicles—it’s rethinking how your fleet runs. Here are a few key things to keep in mind:

1. Charging Setup: Decide where vehicles will charge at depots, homes, or on the road, and how many chargers you’ll need. The right setup now helps you grow smoothly later.
2. Energy Use: Electricity replaces fuel, so it’s important to understand how much energy you’ll need, when you’ll need it, and how to avoid high costs during peak times.
3. Route Planning: EV range can vary, especially with heavy loads or in tough weather. Planning routes with charging in mind helps avoid surprises.
4. Driver Training: EVs are easy to drive, but different. A little training helps drivers get comfortable with things like regenerative braking and battery management.
5. Maintenance: EVs need less maintenance, but it’s a different skill set. Make sure your team or your service partners are ready for it.
6. Total Cost of Ownership: While EVs cost more upfront, they often save money long-term. Factor in fuel, maintenance, and incentives when budgeting.
7. Mixed Fleet Management: You’ll likely run ICE and EVs together for a while. Use tools that help manage both smoothly during the transition.
8. Regulations & Incentives: Keep an eye on government policies—they can impact timing, costs, and available support for your switch to electric.

New Ways to Own and Use Fleets

Electric fleets are changing how companies handle vehicle ownership and charging. Instead of buying vehicles outright, many now lease EVs by 2024, nearly half of all EVs will be leased. In fact, according to Experian’s State of the Automotive Finance Market Report for Q4 2024, over 50% of new EV purchases were leases during that quarter. Leasing helps businesses lower upfront costs and stay updated with evolving technology.

Coordinating charging can be a bit complex during this transition phase. That's where "Depot-as-a-Service" comes in. It helps fleet owners reduce infrastructure costs and achieve the operational efficiency they're aiming for. For instance, the Andhra Pradesh State Road Transport Corporation (APSRTC) is developing infrastructure to support electric buses at the Vidyadharapuram bus depot in Vijayawada. Under the PM e-Bus Seva Scheme, the district is set to receive 100 electric buses, and approximately 15 charging stations will be established at the depot to support their operation.

Others prefer "Energy-as-a-Service" models, which bundle electricity, chargers, and software into a single monthly fee, simplifying budgeting and maintenance. Companies like Convergence Energy Services Limited (CESL) are facilitating the deployment of electric vehicles across India, including nearly 2000 electric cars and approximately 17,000 electric buses, by providing comprehensive solutions that encompass vehicle procurement, charging infrastructure, and energy management.

Smarter Fleets Need Smarter Tools

As fleets grow, managing them naturally becomes more complex. Operators need more than just spreadsheets; they need real-time dashboards where battery data aligns with route planning, and charging infrastructure grows based on actual usage, not assumptions.

And most of all, transitioning from ICE to EV fleets is new territory for many. Like any big change, it comes with a learning curve and yes, some initial discomfort. But it also brings an opportunity to rethink and improve how things run. To ease the transition, there are tools and strategies that can help maintain and even boost your efficiency.

For example, do you want to invest in your own charging infrastructure, or would renting space work better? Should you buy and own your fleet, or lease it to stay flexible as technology evolves? Once these decisions are made, the next challenge is tracking everything and scaling smartly.

That’s where software like Kazam CMS comes in. With electricity replacing fuel, you need to know how much energy is being used, how much you’ll need to grow, and even how much might be getting lost in transmission. Tools like Kazam can give you that visibility instantly, turning guesswork into informed decisions, and helping you keep your fleet running smoothly as you scale.

Conclusion: Why It’s Time to Act

Electrification isn’t just about going green — it’s about making fleets more efficient, reliable, and cost-effective. But without smart energy planning, EV fleets risk becoming costly and unpredictable.

When vehicles, chargers, and energy systems work in harmony, fleets can reduce operating costs, avoid downtime, and gain a competitive edge.

The future belongs to fleets that act today.

Kazam makes it possible.