Cost optimization: reduce the TCO of your electric vehicles

28 Nov 2024

Managing a fleet of vehicles for a company involves many financial challenges, particularly when it comes to total cost of ownership (TCO). This key indicator measures all the costs associated with leasing and operating a vehicle. For a company managing a fleet, optimizing TCO is very important to reduce expenses, improve profitability and promote ecological choices such as switching to electric vehicles.

What is TCO and why is it important?

TCO is a comprehensive measure that encompasses not only the cost of leasing, but also operating costs such as maintenance, fuel or energy, as well as vehicle depreciation. In a context of energy transition and CO2 emissions reduction, it is essential for companies to understand these costs over the entire life of a vehicle. This enables them to optimize investments and better plan the evolution of their fleets.

The acquisition costs of an electric vehicle and a combustion-powered vehicle are not comparable, but neither are their running costs! So, to compare the real cost of each, it makes sense to use the TCO method. As energy costs are much lower for an electric vehicle, the more it is used, the more advantageous the TCO will become over the entire period of use.

The benefits of electric vehicles in terms of total cost of ownership

In terms of TCO, electric vehicles offer major advantages over combustion-powered vehicles. Firstly, although the cost of leasing an electric vehicle may be higher, operating costs are significantly lower, particularly in terms of energy and maintenance. Electric vehicles don't require conventional fuel, and their simpler mechanical systems mean less maintenance. What's more, the more kilometers they cover, the more competitive the TCO of electric vehicles becomes. Indeed, the more an electric vehicle is driven, the lower the total cost of ownership thanks to energy savings. 

How does Smart Connect optimize the TCO of electric vehicles?

Smart Connect is an advanced telematics tool designed to help fleet managers reduce costs and maximize the efficiency of electric vehicles. Thanks to real-time data analysis, it can monitor and optimize energy use, anticipate maintenance needs and improve overall vehicle performance. For example, with Smart Connect, companies can monitor electricity consumption and adjust recharging strategies to take advantage of the lowest rates, or plan optimized routes based on kilometers traveled and available recharging stations.

Smart Connect: our tips for getting the most out of features

To maximize the benefits of Smart Connect, it's important to set up alerts and reports correctly. For example, fleet managers can set up notifications to inform them when vehicle loads reach a certain level, or when a vehicle is not being used optimally. We also recommend exploiting the historical data provided by Smart Connect to identify consumption patterns. This not only reduces energy costs, but also maximizes vehicle autonomy. Last but not least, it is essential to make drivers aware of these tools. Eco-responsible driving, coupled with the intelligent use of Smart Connect, can lead to significant savings.

Optimizing the TCO of electric vehicles represents not only an opportunity to cut costs, but also a concrete way of making a commitment to the ecological transition. Thanks to tools like Smart Connect, professionals can fully exploit the advantages of electric vehicles, optimize their fleet management and thus improve both their profitability and their environmental footprint. At Petit Forestier, we support this transition to a more sustainable future.