Fleets remain committed to sustainability amid regulatory upheaval, seek bridge to electrification

Despite a dynamic period of regulatory uncertainty, marked by the rollback of emission standards, expiration of electric vehicle (EV) incentives and unpredictable imposition of tariffs, fleets are embracing sustainability. New data from Escalent, an AI-enabled market research and advisory partner with unmatched industry expertise, reveal nearly half of fleet decision-makers have increased their focus on sustainability goals year-over-year even as pressure to go fully electric eases.

This is according to the latest report from Escalent’s Fleet Advisory Hub™ insights program designed to explore the needs, expectations and emotions of commercial vehicle and fleet professionals. The 2025 Fleet Electrification Brand Landscape Report explores the perspectives of more than 1,000 fleet decision-makers who are in the market for battery electric vehicles (BEVs) on their BEV manufacturer brand-related sentiments, future powertrain mix and sustainability initiatives.

“In today’s rapidly evolving commercial vehicle and fleet landscape, sustainability is not only about the environmental impact of operating business vehicles. It’s also about the health and vibrancy of the business itself,” said Dania Rich-Spencer, vice president in Escalent’s Automotive & Mobility group. “With relaxed regulatory conditions, fleet decision-makers are taking the time to understand their options. They’re looking to partners to help them identify the right vehicle for their specific business needs and strike a balance between reducing their impact on the environment and maintaining a profitable operation.”

When asked what their ideal powertrain mix would look like in three years, fleet professionals projected the composition of vehicles in operation to be noticeably different from today. Decision-makers anticipate that nearly half (46%) of all commercial vehicles will be electrified—up from approximately one-quarter (26%) today—with gas- and diesel-powered vehicles falling roughly 30%. While BEV growth is expected to remain flat, desire for hybrid and plug-in hybrid EVs increases considerably and extended-range EVs gain some momentum.

“As the market moves toward an ‘electrified’ mindset, the consideration sets for fleet decision-makers are expanding, creating a more diverse competitive landscape for OEMs,” said Lucas Lowden, an Automotive & Mobility insights consultant at Escalent. “This shift positions legacy brands at a unique advantage, especially as startup momentum stalls and some players exit the market. By leveraging their long-standing relationships with fleets and leaning into their ability to offer alternative powertrain technologies as a ‘bridge’ to electrification, established brands have the opportunity to maintain market leadership for the time being, while also getting their electrified portfolios in order.”