TIP has set itself the goal of equipping 20% of its motorized rental fleet with alternatively powered vehicles by 2030. The independent market leader in the rental business for heavy commercial vehicles has analyzed the advantages: Accordingly, the rental of an electric truck is worthwhile and offers companies looking to future-proof their fleet a simple and cost-effective solution for conversion.
Cost parity with diesel trucks from 80,000 toll kilometers
Calculations by the rental company show that cost parity compared to diesel trucks can be achieved with about 80,000 toll kilometers per year. The extent of the savings is closely related to the existing cost structure of the respective company. Fleet operators, for example, who can rely on their own charging capacities and additionally operate them in combination with solar systems, reduce their costs by a multiple. A holistic approach to alternative energies is once again the key to success in this case.
“In advising our customers, the total cost consideration (Total-Cost-of-Ownership – TCO) is particularly important to us. We offer each customer a comprehensive TCO calculation taking into account the real costs for electricity, diesel, tolls, taxes, and other operating costs, creating a solid decision-making basis,” explains Marcus Burmeister, Commercial Excellence Manager at TIP Group in Germany and an expert in alternative drives. “The most important decision criterion for every entrepreneur is still the costs. It has to be financially viable.”
Increasing Demand in the Heavy-Duty Sector
Rental company TIP is recording a steady increase in customer inquiries for fully electric semi-trucks. Electric trucks find ideal application areas, particularly in regional road freight transport and hub logistics. The regionally active construction industry is also increasingly focusing on emission-free rental vehicles.
“With the positive development in range and the increasing availability of charging options, more and more transport companies are choosing electric machines. Interest among our major customers remains consistently high, and medium-sized businesses are now following suit,” explains Marcus Burmeister. “Unhindered by changing subsidy programs or political decisions, this technology will prevail in the long term. E-mobility in heavy-duty transport is unstoppable.”
Available Short-Term with Long-Term Cost Reduction
In Germany, more than 100 e-trucks are in use with TIP rental customers, and further customer deliveries are pending in neighboring countries such as Austria and Switzerland. TIP's flexible rental solutions offer fleet operators easy access to emission-free mobility without a long-term commitment to high investments. The financial and residual value risk is borne by the lessor. Delivery times for new vehicles, despite increased demand, are moderate and depending on model, equipment, and customer requirements, range from three to six months – in the standard segment, short-term availability is usually possible. The lessor keeps rental rates for electric vehicles at a competitive level, and contract terms are flexibly configurable. TIP expects the holding period of the vehicles to extend from the previous four years to around seven years. This trend is reflected in the current developments in rental contract terms.
“There is no optimal contract term. It depends on the requirements of our customers and their order books. We determine the best term together with the customer in our consultation. In any case, it is worthwhile to rent long-term, as the monthly rates decrease significantly with long-term lease agreements,” confirms Marcus Burmeister.
Rental company TIP has strategically positioned itself with its electric fleet and offers models in standard and low-deck configurations, as well as BDF vehicles and terminal tractors from renowned manufacturers.
About TIP
TIP is one of the leading independent rental and service providers for the transport and logistics industry. Under the brand umbrella of the TIP Group, the areas TIP Rent, TIP Services, and TIP Used Equipment are united. With more than 130 locations in 17 European countries and a multitude of service partners, TIP has a close-knit network of branches and workshops with extensive geographical coverage. The TIP rental fleet in Europe includes around 90,000 units with different specifications. From swap bodies to specialized silo trailers and tractor units, the vehicle offering is broad. Industry and specialized vehicles, as well as vehicles with alternative drives, complete TIP's rental fleet.
The service portfolio covers the entire lifecycle of a commercial vehicle from procurement through maintenance and repair to resale and includes additional vehicle-related and value-adding services. Modern vehicle telematics is part of the service range as well as their own breakdown service and offers for protecting the rental object from damage.
In TIP's own commercial vehicle workshops, customer vehicles are maintained, repaired, and inspected. The TIP workshop service is available to customers with and without contracts and includes mobile workshop vehicles for work on-site at the customer's location. More than 58,000 vehicles from transport and logistics companies of all sizes are currently under maintenance contracts, and many others use the TIP workshop network as needed.
