Manuel Tamayo
Country Head Mexico
Element Fleet Management México
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Expert Contributor

Electricity: The Future Motor of Mobility

By Manuel Tamayo | Thu, 12/09/2021 - 16:57

Electric mobility is a reality, but it also requires greater promotion to encourage people to live more sustainably and thus reduce our dependence on fossil fuels.

Even though developed countries have made many advances in this area, Mexico is doing its part to achieve the transition to more efficient, modern and sustainable means of transportation.

Promoting their adoption should be a priority for governments but also for the private sector, especially if we consider that by 2030, 60 percent of the world's population will live in cities, up from 50 percent now.

In addition, it is expected that more than 2 billion people will enter the middle class in nine years and that most of them will live in cities in emerging economic zones, meaning the number of metropolises with more than 10 million people will continue to grow.

Mexico City is already in this classification, but we will likely add 10 cities with more than 1 million inhabitants in their metropolitan areas, according to the National Institute of Geography and Statistics (INEGI).

It is, therefore, essential to make provisions to expand the portfolio of brands and models available to the market, in order to meet the demand for transportation that will arise in the coming years, but also to ensure the efficient and timely movement of goods in the face of the e-commerce boom.

Another relevant aspect of this formula has to do with infrastructure. There are currently around 2,100 public charging stations in Mexico, although there are already important alliances between private and public companies to expand the network, such as the Charge Now network.

But there are also other very ambitious and important efforts to fuel electro mobility in the country, which include helping companies in their transition to these types of units.

At Element we have joined forces with four important companies to accelerate electric mobility in Mexico. This is the first alliance of its kind, in which each brings its expertise to provide turnkey solutions to customers.

While Element serve with a fleet management solution through a range of services that will include financing (vehicles and infrastructure), insurance, management, maintenance management and telemetry for the units, the Italian firm Enel provides customers with the infrastructure required for the electric recharging of the units by intelligent supplying of 100 percent renewable energy.

EMT, a distributor in Mexico of BYD light goods vehicles ranging from 0.8 to 3.5 tons, is responsible for the bodywork, according to the line of business of the company that uses it, and through its sister company (ASEM) provides maintenance, which has nationwide coverage, using state-of-the-art telemetry tools. 

In this way, we will be able to serve more customers with specific needs in a market that demands specialized and efficient services.

Electric units have several advantages for companies in terms of savings, although there are many aspects associated with hybrid or electric vehicles, such as maintenance costs, because in internal combustion vehicles, the parts with the highest wear are those related to the engine, while in these units the revisions could belong, although its implementation brings several benefits, such as incentives and tax exemptions.

However, a robust cost structure allows a good comparison. It also allows the addition of hybrid or electric units into a fleet. To this end, it is important to have the expertise of a fleet manager that provides accurate and correct leasing solutions, in combination with other services, such as telemetry, to ensure customers have the right solution and number of units to suit their needs.

Telemetry can also be a great ally in the operation of the business, since it allows companies to monitor multiple aspects that help to make the operation more efficient, such as the charge level or driving patterns to maximize the life of the vehicle’s battery.

In addition, corrective maintenance can be performed to enhance the useful state of the batteries and other aspects, while allowing companies to anticipate issues and optimize their operation, although we must not lose sight of the fact that the electrification of the fleet requires data and intelligence collection and analysis processes.

It is, therefore, necessary that the value proposition is supported by data and knowledge-based strategies to reduce the total cost of customer operations and provide a superior and consistent customer experience.

Despite all the fiscal and monetary benefits that migrating to electric fleets can mean for a company, this undoubtedly brings benefits in terms of social responsibility, as it allows them to reduce their carbon footprint; however, it is desirable to define a strategy to achieve this, including the definition of goals and objectives to cover social responsibility and profitability, fleet use, understanding the incentives that exist in the market and evaluating the infrastructure, as well as implementing, monitoring and communicating the results.

The benefits of this migration are substantial in several aspects. This is why this trend is on the rise. In Mexico, we are seeing greater progress toward achieving this transition in terms of the available product portfolio, infrastructure and the necessary change in mindset.

Photo by:   Manuel Tamayo

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