Secure the fleet with electric conversions against unpredictable fuel prices

Dominik Ashkar, CEO HEERO Motors vor HEERO Minibus

Secure the fleet with electric conversions against unpredictable fuel prices

2025-05-26

10

Minutes

Max Knirsch

Product Expert

2025-05-26

10

Minutes

Max Knirsch, Product Expert at HEERO Motors

Max Knirsch

Max Knirsch

Product Expert

Did you know that over 3,500 electric buses in Germany have already received state subsidies? In light of unpredictable diesel prices and stricter CO₂ regulations, the electrification of existing fleets is not a luxury, but a strategic necessity. Those who secure their fleet against unpredictable fuel price fluctuations by retrofitting to electric gain planning security for the next ten years – although the federal KsNI funding ran until 2024.

The topic briefly and concisely

Protect your fleet against volatile diesel prices by converting to electric and benefiting from stable, predictable energy costs.

The state KsNI funding covered up to 80% of the additional costs of a vehicle conversion and 40% of the charging infrastructure until 2024; since August 2024, no new funding calls are planned.

A diesel-to-electric conversion reduces total operating costs (TCO) through lower maintenance, energy, and toll costs while conserving valuable resources through the principle of circular economy.

The volatility of fuel prices and the growing pressure from CO₂ pricing present fleet operators with enormous challenges. Sticking with diesel means accepting rising and unpredictable operating costs. At the same time, legal regulations such as the Clean Vehicles Directive force action. Retrofitting your fleet to electric drive is the pragmatic solution to minimize these risks. You not only hedge against price fluctuations, but also position your company to be future-proof, reduce the total cost of ownership (TCO) and make a measurable contribution to the circular economy. For context: Up until 2024, the state KsNI funding covered up to 80% of the additional costs of a retrofit; new funding calls are not planned, already approved projects will be fully financed.

Cost trap diesel: Why volatile prices and CO₂ taxes force action

Operating costs for diesel fleets are subject to massive fluctuations, making reliable financial planning almost impossible. The CO₂ tax alone will rise to 55 euros per ton in 2025, which will continue to drive up fuel costs. In addition, there are regulatory requirements such as the Clean Vehicles Directive (CVD), which already obligates public contracting authorities to procure low-emission vehicles today – by 2025, 45% of new buses must be "clean". This combination of price pressure and legal requirements creates economic uncertainty that paralyzes many companies. Retrofitting to electric is the direct way to end this uncertainty. A professional amortization calculation shows how quickly the investment pays off. Electrification is therefore not only an ecological but, above all, an economic necessity for long-term stability.

Your 4-point action plan for fleet electrification after the end of the 80% subsidy

The transition to electromobility does not have to be a complex feat. With a clear plan, you can classify the subsidy situation and make your fleet future-proof. The federal KsNI funding ran until 2024; new funding calls are not planned. Until then, up to 80% of the additional costs of a vehicle conversion were subsidized, and the charging infrastructure was part of the guideline.

  1. Carry out a funding check: Check how your project stood in relation to the KsNI funding from the Federal Ministry for Digital and Transport (BMDV). We support you in classifying the up to 80% subsidy on the additional costs of a conversion.

  2. Create a TCO analysis: Compare the total cost of ownership (TCO) of your current diesel fleet with the projected costs after electrification. Studies show that electric commercial vehicles are often cheaper than their diesel counterparts after just four to six years.

  3. Validate driving profile and range: Check whether the ranges of modern electric vans meet your daily requirements. The HEERO eTransporter, for example, achieves up to 500 km on a single charge.

  4. Plan charging infrastructure: Determine the charging infrastructure requirements at your depot. The charging infrastructure was also part of the KsNI guideline, which significantly reduced the investment.

This structured approach takes the complexity out of the process. It enables a well-founded, data-driven decision and ensures your planning security for the next 10 years. The next step is a detailed analysis of the available funding pools.

Classifying funding pools: What support was recently available and what follows from it

The funding landscape has drastically reduced the costs for electrification over the years. The central instrument was the KsNI directive of the BMDV, which explicitly supported the conversion of existing vehicles. Until 2024, it covered up to 80% of the additional investment expenses compared to a reference diesel vehicle. This means that the majority of the differential costs between a conversion and a new diesel truck were borne by the state. Since August 2024, the KsNI has been discontinued; no new funding calls are planned. In addition to vehicle funding, charging infrastructure was also eligible for 40% funding. Many companies left this opportunity unused because they shied away from the bureaucratic effort. With a professional funding analysis, you can bypass this hurdle. This turns a complex application process into a clear path to cost reduction.

TCO Analysis: How Retrofitting Reduces Total Cost of Ownership by Over 50%

The higher acquisition costs of an electric vehicle or a conversion are often perceived as a hurdle. However, a close examination of the Total Cost of Ownership (TCO) proves the opposite. The TCO includes all costs over the entire lifespan of a vehicle, from acquisition through energy and maintenance to residual value. Studies by the International Council on Clean Transportation (ICCT) prove that battery-electric trucks already have the lowest total cost of ownership today or by 2030 at the latest in most classes. The savings result from several factors:

  • Lower energy costs: Electricity is significantly cheaper per kilometer than diesel, even with fluctuating prices.

  • Reduced maintenance costs: Electric drives have fewer wear parts than internal combustion engines, which reduces maintenance costs by up to 50%.

  • Tax benefits & toll exemption: Electric commercial vehicles are exempt from the truck toll in Germany, which represents significant savings.

  • Elimination of the CO₂ tax: The steadily rising CO₂ pricing for fossil fuels is completely eliminated.

The conversion is particularly economical here. It preserves the value of your existing vehicle body while simultaneously making you fit for the future. A detailed analysis of your total fleet costs shows your individual savings potential. This financial attractiveness is underpinned by the technological maturity of the vehicles.

Technology that convinces: Range and charging performance in practical tests

The practical suitability of electric commercial vehicles has long been proven. Modern battery technology and high charging capacities guarantee a smooth operational process. For example, the HEERO DTE-Sprinter achieves a range of up to 425 km. Our vehicles are designed for demanding daily work. The HEERO mid-low-floor bus features a 137 kWh gross battery and charges at up to 165 kW. This means that in just 30 minutes, 80% of the range is available again. All other models, such as the Tourer minibus with a range of up to 400 km, use a 110 kWh battery and charge at up to 135 kW. These performance figures disprove outdated prejudices and prove everyday usability. The available conversion solutions offer the right technology for almost every requirement profile. This makes the transition not only economically but also operationally a clear win.

Circular economy as a competitive advantage: renovation instead of new purchase

The decision to convert is a clear commitment to the circular economy. Instead of scrapping a fully functional vehicle with an expensive specialized body, its service life is significantly extended. This approach not only conserves valuable resources such as steel and aluminum, but also reduces the CO₂ footprint that would be generated during the production of a new vehicle. You retain the proven base of your vehicle and combine it with a future-proof, locally emission-free drive. This protects your original investment while acting sustainably at the same time. This approach of utilizing existing assets is the core of an intelligent and resource-conserving fleet strategy. It proves that economy and ecology can go hand in hand.

HEERO Motors. Electric solutions for real-world, high-demand use cases.

HEERO Motors GmbH, Kurfürstenstraße 1, 80801 Munich.

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© 2026 HEERO Motors. All rights reserved.

© 2026 HEERO Motors. All rights reserved.

© 2026 HEERO Motors. All rights reserved.