Fleet Electrification: Insights from IAA Mobility 2025
- Mark Goldspink
- Sep 14
- 7 min read
Updated: Sep 16
At IAA Mobility 2025 in Munich, the conversation was as charged as the vehicles on display. The Blue Forum played host to a panel on Fleet Electrification and Alternative Powertrains, moderated by Ben Lawrence of Boston Consulting Group (BCG). Alongside colleagues from Octopus EV, IONITY and E.ON Drive, I had the privilege of contributing PHC Mobility’s perspective on where fleets stand today — and what lies ahead.
IAA Mobility is Europe’s premier stage for mobility innovation. Automakers, technology providers, policymakers and thought leaders converge to set the tone for the industry’s next chapter. That makes it an ideal forum not just for unveiling products, but for tackling the systemic questions shaping the future of mobility.
What became clear in Munich is that the debate around fleet electrification is no longer about if but how. As Ben Lawrence noted in his keynote:
“It doesn’t work today to go to a fleet and talk about electrification for the sake of electrification. It has to solve their broader challenges.”
Those challenges — costs, infrastructure, performance, and trust — shaped both the keynote and our panel discussion. For PHC Mobility, the key is to understand not just the technology, but how payments and data integration can enable fleets to transition with confidence.
Four mega-trends reshaping fleet strategy
1. AI and Data Interoperability
Fleets increasingly rely on predictive analytics to reduce downtime, optimise routes, and anticipate maintenance. Some operators are already experimenting with AI-driven route optimisation that accounts for driver availability, battery state-of-charge, and energy pricing. Others are piloting predictive maintenance tools that analyse vehicle telematics to schedule servicing before breakdowns occur. Looking ahead, AI will not just enhance fleet efficiency but also act as a fraud detection tool, helping spot anomalies in payment patterns or charging behaviour.
2. Decarbonisation and Electrification
Electrification is the most visible trend, but approaches vary. In Europe, regulatory targets drive aggressive adoption. In the US, policy volatility fuels optimism bias - some fleet managers expect a faster transition than infrastructure or regulation may realistically support. Sweden already treats decarbonisation as "business as usual", while in Germany and the UK it remains a top priority but also a source of friction.
3. Consolidation of Purchasing Power
Mega-fleets like Amazon, DHL and DPD increasingly dictate procurement standards, forcing suppliers to meet their demands on vehicle specifications, charging access, and sustainability metrics. By contrast, small and mid-sized fleets often lack the bargaining power to influence suppliers directly, so they rely on outsourced service bundles, effectively buying "fleet-as-a-service". This widening gap between mega-fleets and SMEs is reshaping procurement dynamics across Europe.
4. Autonomous Vehicles
Still viewed as a longer-term play, autonomy is expected to reshape logistics and fleet economics within a decade. Amazon and DHL already run limited pilots of autonomous last-mile delivery vehicles, while cities like Hamburg and Lyon are experimenting with autonomous shuttles. For now, electrification dominates the agenda, but the convergence of autonomy, data, and electrification is inevitable.
The mix of these forces creates both complexity and opportunity. Fleets are diverse in size, purpose and geography, meaning no "one-size-fits-all" electrification pathway exists.
Despite optimism about the proportion of electric fleets by 2035, barriers remain entrenched. According to BCG’s survey of 500 fleet operators across the US, UK, Germany, Poland and Sweden, the top three obstacles are:
High vehicle cost
Charging infrastructure availability
High charging cost
For smaller fleets, cost dominates. For larger fleets, operational performance (vehicle availability, charging reliability) is the priority.
Fiona Howarth, CEO of Octopus EV, underlined this point during the panel:
“When you’re trying to convince individuals, it often comes down to cost and perception. Fleets are more rational. If the total cost of ownership stacks up — if it’s cheaper and reliable — then adoption accelerates.”
That “if” is critical. Fleet managers face pressure not just to decarbonise, but to ensure vehicles are available, drivers retained, and costs predictable.
Vehicle-to-grid (V2G) technologies are beginning to add another layer of complexity and opportunity. As Howarth noted, their recent launch of a commercial V2G solution with BYD shows that cost can be mitigated by monetising flexibility, but only if charging systems, data flows, and policy frameworks align.
Total Cost of Ownership and new service models
From my perspective, this is not a new challenge. Across my 35 years in payments and mobility, the lesson has been clear: fleets care about total cost of ownership (TCO). The conversation must move beyond sticker price to lifecycle economics.
As I shared on stage:
“We’ve been grappling with cost questions for years. It’s all about looking at the entire lifecycle. We need new service models — pay-as-you-go, technical service offerings — that flatten cost spikes and give fleets predictability. Otherwise, we’re asking them to take a Hail Mary rather than a calculated step forward.”
This shift away from asset ownership towards service models mirrors broader trends in mobility, from ride-hailing to Mobility-as-a-Service. For fleets, predictability is the new premium.
Multi-location charging and data integration
Jonas Prudlo, COO of E.ON Drive, highlighted another challenge: charging across multiple locations.
“Fleet managers need seamless integration — at home, at depot, and on the go. The key is data. Without it, you can’t optimise usage or unlock flexibility value for the grid.”
He went further, pointing out that regulation complicates the picture:
“It’s not one-size-fits-all. Different markets have different rules, making integration a complex task.”
This is where payments and mobility intersect. Charging isn’t just an infrastructure challenge; it’s also about billing, settlement, and integration with payroll or fleet management systems. Without seamless data flows, charging quickly becomes a source of friction.
The outsourcing trend
Electrification is accelerating a clear industry trend: outsourcing.
SMEs increasingly outsource to fleet service providers to reduce complexity.
Mega-fleets aggregate demand to gain bargaining power.
This creates opportunity but also competition. Energy companies, OEMs, fuel retailers, and charging specialists now compete head-to-head for fleet relationships. As Ben Lawrence observed:
“In EV charging, there’s no clear winner yet. Legacy providers are competing with new entrants in ways we’ve never seen before.”
For PHC Mobility, the implication is clear: the winners will be those who can integrate payments, data, and mobility into trusted, end-to-end solutions.
Trust and procurement in fleet services
Procurement behaviour is shaped by risk perception. Mega-fleets often prefer legacy providers. Not necessarily because they are cheaper, but because they are trusted to be around in 10 years’ time.
Meta Kessler of IONITY explained:
“Partnerships are at the heart of our business. Fleets want assurance that the infrastructure and providers they rely on will still be here tomorrow.”
Her point was illustrated through IONITY's plug-and-charge solution, which requires deep collaboration across OEMs, charging hardware providers, and energy retailers. The customer simply plugs in and charging begins — invisible complexity made seamless through partnership.
This is both a challenge and an opportunity. Start-ups with innovative solutions must demonstrate not only technical capability but also operational stability. Legacy providers must prove they can evolve quickly enough to meet new demands.
Partnerships and policy as accelerators
Partnerships emerged as a recurring theme throughout the panel. Electrification cannot be delivered by OEMs, utilities, or software providers in isolation. It requires collaboration across the value chain.
Policy also plays a crucial role. As Jonas Prudlo noted:
“I’m not a fan of direct subsidies — they create disruption rather than long-term certainty. What we need are enabling policies: smart meters, grid access, taxation clarity. Otherwise, huge value is lost.”
The contrast across Europe illustrates the point. In Germany, permitting bottlenecks slow down charging rollouts, and grid capacity constraints make urban installations particularly complex. In the Netherlands, permitting is faster but grid congestion has forced new connections to be rationed. The EU’s Alternative Fuels Infrastructure Regulation (AFIR) aims to harmonise progress, mandating minimum charging infrastructure along key transport corridors. But local execution varies, creating patchwork complexity for fleets operating cross-border.
Fiona Howarth pointed to the importance of regulation that supports decentralised energy:
“We need to rethink the system: local generation, local storage, local flexibility. That requires regulators to adapt — not tomorrow, but now.”
Without consistent frameworks, fleets face unnecessary complexity and risk.
The role of payments and data
For PHC Mobility, electrification cannot be separated from payments and data integration. In my remarks, I drew parallels to the evolution of online payments:
“Fraudsters exploit the gaps between silos. In mobility, it’s no different. If fleets face friction at the point of payment — or worse, fraud — trust evaporates. The answer is data, integrated across locations and services.”
The lesson from fuel cards is instructive. Closed-loop systems offered control but limited flexibility and fraudsters found ways to exploit those blind spots. As mobility moves into open-loop ecosystems, the stakes are higher but so are the opportunities. With real-time data, tokenisation, and AI-driven fraud detection, we can close the gaps and give fleets confidence at every transaction.
Payments and data intelligence are not side issues; they are central to making fleet electrification reliable and scalable. Without them, the risk is stranded assets and frustrated customers. With them, fleets can unlock efficiency, resilience, and competitive advantage.
Looking ahead: from hype to integration
As the panel drew to a close, one theme resonated: the future of fleet electrification will be won not by technology alone, but by integration and trust.
Integration of data, payments, and infrastructure to simplify the experience.
Trust in providers to deliver long-term stability, reliability, and value.
Or as I summarised on stage:
“Data, data, data. We’ve got to use it. It will help us get down the experience curve quicker and then we’ll get greater predictability.”
Conclusion: Total Cost of Ownership already favours fleet electrification, but the challenge lies in reframing value.
IAA Mobility 2025 made one thing clear: the fleet transition is accelerating, but uneven. Costs, charging, and policy still present hurdles, but there’s plenty of energy and fresh thinking driving progress.
At PHC Mobility, we see electrification not simply as a technology shift, but as a business model revolution. The economics are already compelling: Total Cost of Ownership favours electric vehicles through lower fuel, maintenance, and downtime costs, yet perception lags behind reality. The challenge is less about cost and more about reframing value—unlocking smarter financing models, modular charging that scales, and cross-sector partnerships that extend far beyond the vehicle. This is why electrification is fundamentally different from incremental shifts like low-sulphur diesel; it rewires the entire ecosystem, from energy supply and financing to data integration and new commercial models.
The real unlock lies in interoperability and resilience. Today’s fragmentation across charging, data, and payments creates friction, but common standards and open APIs will cut costs, build confidence, and accelerate capital flows. With usage-based, contract-backed models, private investment becomes bankable, enabling Infrastructure-as-a-Service at scale.
PHC Mobility’s focus is to help organisations navigate this transformation—connecting mobility with payments, data, and ecosystems to deliver sustainable growth. For fleets, electrification is both inevitable and transformative: those who embrace openness and resilience now will shape the future of mobility and secure lasting competitive advantage.
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