According to The Asean Strategy for Carbon Neutrality, Southeast Asia needs to bridge a 2.6 gigatonne (GT) CO2 gap to achieve its carbon-neutrality goals. Recognising this, governments in the region are increasingly encouraging the switch to electric vehicles (EVs) through regulations and incentives.
The pace of EV adoption varies across Southeast Asia due to differing levels of economic development, government policies and infrastructure readiness. “Both Australia and Singapore are making moderate progress while the rest of Southeast Asia is generally in the early stages of adopting fleet electrification. These countries are developing policies and infrastructure to support future growth but currently face challenges, such as limited charging infrastructure and higher EV costs,” says David Brown, associate vice president of sales for Asia Pacific at Geotab, a fleet management solutions provider.
The cost to switch is the biggest barrier to fleet electrification, especially as most EVs are still more expensive than vehicles running on internal combustion engines. However, the cost benefits of an electrified fleet can create a powerful counterweight to its inertia.
“In reality, shifting to EVs is a cost-saver. Batteries are the most expensive part of an EV, so as long as EV batteries are managed and maintained effectively, fleet managers should make significant cost savings over time. Telematics can help fleet managers monitor how much energy the vehicles consume, track driver behaviour, determine optimal charging times and more,” says David Brown, associate vice president of Sales for Asia Pacific at Geotab, a fleet management solutions provider.
Building the case for fleet electrification
Electrifying a fleet is a complex undertaking as EVs vary widely in performance and suitability and each fleet operator has distinct operational needs. To simplify this process, Geotab's Electric Vehicle Suitability Assessment (EVSA) tool evaluates an operator's existing fleet and provides a customised fleet electrification blueprint.
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“Fleet managers must first understand the total cost of ownership of their existing fleet. They can do so by installing Geotab's telematics devices into their current fleet to get vehicle data, such as the distance travelled, idle time, fuel consumed and maintenance cost,” Brown adds.
“EVSA will analyse those telemetry data to provide lifetime cost and financial analysis. It will also suggest the most suitable EV for the business’s specific need and quantify the cost savings and environmental impact if those EVs are adopted.”
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A mockup of Geotab's EVSA dashboard. Photo: Geotab
Since EVSA uses current real-world data, it empowers fleet managers to confidently build a solid business case for fleet electrification. “Most fleet managers won’t overhaul their entire fleet overnight, so with EVSA, they can decide which existing vehicles to replace to meet their immediate targets, like cutting carbon emissions by a certain percentage over a period,” says Brown.
Fleet managers with older heavy vehicles lacking Electronic Control Units or Onboard Diagnostic ports can still benefit from EVSA. They can monitor fuel usage and fill-ups by connecting Geotab’s Fuel Gauge Tap-In Harness to the fuel gauge.
Brown also highlights that EVSA can address range anxiety or the fear of not having enough charge. This worry might be more pronounced in Southeast Asia as its warmer and humid climate affects the performance of the EV battery. In hotter environments, an EV needs to work harder to keep its battery cool, which affects battery life and shortens the range (or distance) it can cover. Additionally, frequent charging can contribute to faster battery degradation over time.
Since Geotab currently supports 300 makes and models of EVs, it has near real-time data on battery charge, range, energy and fuel usage and charging history of those vehicles. Leveraging that extensive real-world vehicle data, EVSA will recommend EVs with batteries that can still cover the range a fleet operator requires in extreme weather conditions.
Why telematics is key
The fleet electrification journey calls for effective fleet management. With the right telematics solutions, fleet managers can:
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- Make data-driven decisions
Those solutions must capture extensive vehicle data, including location, fuel consumption and maintenance needs. The data must then be unified and presented on a single platform to empower fleet managers to optimise routes, reduce fuel consumption and lower operational costs.
- Enable predictive maintenance
By leveraging predictive analytics, fleet managers can anticipate maintenance issues before they become critical. This proactive approach reduces downtime and extends the lifespan of vehicles, contributing to more sustainable fleet operations.
- Enhance driver safety
Those solutions should monitor driver behaviour in real-time, identifying risky practices like sudden braking, speeding and excessive idling. This data allows for targeted driver training programmes, enhancing overall safety and decreasing the likelihood of accidents, which can lead to lower insurance premiums.
- Better comply with regulations
Navigating the complex regulatory environment in the fragmented Southeast Asian market can be challenging. Therefore, fleet managers should use fleet management tools that ensure compliance with local regulations, such as hours-of-service requirements and emissions standards, to avoid costly fines and penalties.
- Improve fuel efficiency and reduce cost
Telematics solutions must help fleet managers monitor and manage fuel usage more effectively. By optimising routes and shortening idle times, fleets can achieve significant fuel savings, directly impacting their bottom line.
- Scale and adapt easily
Since fleet requirements may change over time, the telematics solutions must be scalable and adaptable to support various fleet sizes and types.
Fleet managers should also look for AI-powered telematics solutions, as artificial intelligence (AI) will supercharge the abovementioned benefits. “AI is expected to revolutionise fleet management by [further enhancing] predictive maintenance, driver monitoring, route optimisation and enhanced safety — all of which will improve efficiency and sustainability. Geotab Ace exemplifies this,” says Brown.
Geotab Ace aims to transform analysing fleet data into a simple and intuitive experience. Leveraging generative AI, Geotab Ace allows managers to ask fleet-related questions in natural language on a chat interface. It can provide information quickly — from vehicle performance and idling times to fuel economy comparisons, vehicle usage and cost savings — reducing the time to insight for fleet managers.
Real-world business impact
Brown says telematics is not a cost but an investment to a business. “Without it, fleet managers can’t comprehensively understand their fleet, preventing them from making insights-driven decisions to improve their fleet performance.”
Geotab’s telematics solutions are currently used by 50,000 businesses globally, of which 1,500 are from Asia Pacific. Among them is Shaziman Transport, which transports petroleum products to southern and central Peninsular Malaysia, Singapore and Thailand. It also provides car carrier services with a fleet of 25 car haulers.
Geotab's solutions enable Shaziman Transport to proactively schedule maintenance for critical components such as brake pads, alternators and starters. By monitoring trends and setting alerts for potential issues, the company can intervene before breakdowns occur. This prevents costly downtime and missing routine inspections and demonstrates to auditors from petroleum companies how it monitors its tankers.
Shaziman Transport's use of Geotab has also improved safety. The platform's fault warning system alerts the company to potential issues, such as low coolant levels, allowing it to take immediate action and prevent breakdowns. Geotab tools also identify driving issues and coach drivers to improve performance and address unsafe behaviour.
Meanwhile, Shaziman Transport uses Geotab to target fuel waste and reduce greenhouse gas emissions. Geotab’s solutions provide detailed data on each vehicle, including idle time percentages and the locations where idling occurs. This information helps Shaziman Transport identify the causes of unauthorised stops by drivers and address the issue effectively.
Fleet electrification might seem challenging, but it is crucial for meeting sustainability goals. Using telematics to optimise fleet operations, enhance driver safety and reduce environmental impact, fleet managers can support Southeast Asia’s shift toward a cleaner, more sustainable future.
