\n<\/p>\n
Rising and volatile diesel prices \u2013 fuelled by recent disruptions in global energy markets \u2013 are eating into operating margins, prompting more firms to explore electric alternatives.<\/p>\n
EV supplier Hong Seh Group told CNA that demand for electric vans, minibuses and light-duty lorries has been growing steadily.\u00a0<\/p>\n
The company, interpreting data from the Land Transport Authority, noted that such vehicles comprised about 25 per cent of all vehicle registrations last year. Just six months into this year, this figure has hit 33 per cent.<\/p>\n
\u201cThe vehicles have gotten better,\u201d said Mr Edward Tan, executive director of Hong Seh Group.<\/p>\n
\u201c(There is) more technology inside them \u2026 The safety features, which are provided within the vehicles to protect not just the passengers but also the asset of the vehicle itself, have also increased.\u201d<\/p>\n
The company said customers are attracted by lower running costs, with fuel savings helping to reduce operating expenses by as much as half.<\/p>\n
\u201cWith going electric, it saves you money,\u201d said Mr Tan, noting that the government offers incentives to support businesses making the transition.<\/p>\n
\u201cThis helps us lower our cost of the purchase of the vehicle to that of a comparable (internal combustion engine) vehicle, and sometimes makes it even cheaper.”<\/p>\n
For logistics provider Call Lade Enterprises, cost savings were a key factor behind its decision to begin electrifying its fleet.<\/p>\n
Its chief sustainability officer Ryan Hoo said persistently high diesel prices, triggered by the Middle East conflict that broke out in late February, have made long-term planning more difficult.<\/p>\n
\u201cWe really do not know when this will end, and we don’t know when the price will come down,\u201d said Mr Hoo.<\/p>\n
\u201cFor operators like us, especially in today’s climate, the fuel price has hiked up, our cost planning, our operating margins have been affected quite a bit.\u201d<\/p>\n
But economics is only part of the equation.<\/p>\n
Mr Hoo said more customers are demanding greener supply chains and lower carbon emissions from their logistics partners.<\/p>\n
Companies that fail to meet these expectations risk losing business opportunities and contracts.<\/p>\n
So far, around half of Call Lade Enterprises’ van fleet runs on electricity.<\/p>\n<\/div>\n
\n
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