Some of the new entrants in the EV market are focused on the fleet segment because it provides an opportunity for them to get up to scale much faster. The fleet market provides orders that a company can count on and provides an opportunity to ramp up quickly.

However, there are some EV players that are solely focused on the consumer market and view the fleet market as a distraction.

It is important to realize that fleet customers have different purchasing criteria. They will often look at total cost of ownership, which is predicted to be less for EVs and ICEs. Also, fleet owners may be considering ESG reporting requirements, which might cause them to more seriously consider EVs.

As new entrants consider their strategy, they must decide how they want to allocate their scarce resources between the consumer market and the fleet market.