Teachers Mutual Bank says it will save $28,834 per vehicle over five years by switching its corporate petrol cars to electric vehicles. The bank has committed to transitioning its entire fleet of 36 vehiclesto EVs by 2027.
The bank says its investing $2 million in the electric corporate car fleet over 6 years, including 10 EV charging stations at four of its bank offices in Sydney (Homebush and Rooty Hill), Brisbane and Perth. The chargers will be free for use for the Bank’s members.
The bank is also taking advantage of a NSW Government grant covering 75% of the cost of installation of the chargers.
The new EV fleet will be entirely made up of Kia Niro electric SUVs, which have 460km range and fast-charging capability.
The bank has also provided costings over five years showing that despite the higher purchase price, when running costs and resale value are taken into account, EVs work out much cheaper.
The bank’s total cost per EV over five years, factoring in the forecast resale value, comes to $43,997 compared to $72,831 per petrol vehicle. That translates to a saving of $28,834 per vehicle over five years.
EVs are also now exempt from fringe benefits tax (FBT). The new EV FBT exemption was passed through federal parliament in November last year but is effective from July 2022 meaning all EVs purchased through businesses during this financial year are eligible for the FBT exemption.
Fleets act as a “gateway” for EV second hand market
Teachers Mutual Bank says fleet cars act as a gateway to the establishment of a second-hand EV market.
The bank says if Australia’s largest corporate fleets commit to only purchasing EVs by 2025, Australia could see an additional 1-1.5 million electric cars, utes and vans reaching the second hand market by 2030.
Fleet management company FleetPartners, which operates in the Australian and New Zealand markets, recently reported that 50% of its order pipeline is for EVs and hybrids.
The company credits the New Zealand government’s Clean Car Discount and Clean Car Standards policy for supercharging fleets to go electric.
Daniel Bleakley is a clean technology researcher and advocate with a background in engineering and business. He has a strong interest in electric vehicles, renewable energy, manufacturing and public policy.