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Eco and cost benefits are key drivers for eLCV adoption, Arval finds

The reduced environmental impact and running costs of electric vans are key reasons for fleets going electric, outweighing corporate social responsibility (CSR) and low emission zones.

By 2025, almost half of operators surveyed by Arval expect to have at least some electric vans

Research from Arval Mobility Observatory found that while electrification in van fleets is still very much in its infancy, it’s accelerating fast. By 2025, almost half of operators expect to have at least some electric vans.

And when asked about their motives for alternative fuel adoption, more than half cited eco and cost saving considerations, with the lower environmental impact of electrified vehicles mentioned by the most (55%), tax incentives next (51%), total cost of ownership being in line or lower than petrol or diesel vehicles (50%) and reducing fuel expenses (50%).

Only 40% listed improving company image, and 38% said about being able to drive in low emission zones, amongst other answers.

The research also asked businesses whether they already operated full battery electric vans or were planning to do so within the next three years. In total, 9% said they already had, while 47% already had them or would acquire them.

Shaun Sadlier, head of Arval Mobility Observatory in the UK, said the environment, CSR objectives and being seen to do the right thing in this sense are clearly major incentives.

“More and more businesses are working towards a net zero target and bringing light commercial vehicle fleets into line with this aim is essential. Electric vans are often the keystone of these strategies.

“However, it’s very interesting to see how awareness of the cost advantages of operating electric vans are becoming acknowledged among fleet operators. Half of them say both that total cost of ownership is in line or lower than petrol or diesel vehicles and that there are fuel savings to be accessed. For commercial fleets, that are very much driven by cost considerations, these are major incentives in the transition to electric power.

“Finally, there is also clearly a feeling that government at local and national level will aim to limit movements of petrol and diesel vehicles in the future, with low emission zones and future restrictive policies being mentioned by respondents. They believe that operating electric vans will become a prerequisite to maintaining future access to areas where clean air strategies are being pursued, it appears.”

For its 2022 Barometer, Arval Mobility Observatory talked to decision-makers in 26 countries. Visit bnpp.lk/AMOInsight9 to register for research reports.

  UK Europe
100% battery electric vehicles 9%/47% 8%/25%

Why are you already or considering implementing alternative fuel technologies for your van fleet? Basis: companies having implemented or considering hybrid, plug-in hybrid or electric LCVs

  UK Europe
Because of their lower environmental impact 55% 49%
For tax incentives 51% 35%
Because total cost of ownership is in line or lower than petrol or diesel vehicles 50% 35%
To reduce fuel expenses 50% 44%
To improve your company image 40% 41%
To be able to drive in low emissions zones 38% 32%
To anticipate future restrictive policies 36% 32%
To be compliant with your CSR policy 35% 35%
To fulfil employee requests 30% 20%

 

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Written by Natalie Middleton

Natalie has worked as a fleet journalist for over 20 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day.

Natalie edits all the Fleet World websites and newsletters, and loves to hear about any latest industry news.

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