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Electric vans cheaper to run than diesels, finds new study

The average electric van is 19% cheaper than a diesel in terms of total cost of ownership, yet drivers and businesses are being let down on supply.

The study showed the total costs of owning and running an electric van in the UK are between a fifth (19%) and a quarter less than equivalent diesel vans

A new study by Transport & Environment (T&E) found that the cost of owning and running an electric van in the UK is between a fifth (19%) and a quarter less than equivalent diesel vans (based on analysis completed before the recent fuel and energy price spikes).

Furthemore, a survey by Dataforce for T&E – including responses from 124 British private users and businesses – shows 89% are now ready to go electric in the UK. Among respondents who do not already own an electric van, almost half (49%) said they wanted to buy an e-van in 2022.

But the supply of e-van models is not matching demand – accounting for just 3.5% of sales in 2021 and lagging far behind battery electric cars (11.5%).

And T&E said the supply of zero-emissions vans will continue to fall far short of business needs unless the proposed zero emissions vehicles (ZEV) mandate for vans, scheduled to start in 2024, requires manufacturers to sell one zero emission model for every five vans by then.

Ralph Palmer from T&E UK said: “Van drivers want to ditch diesel and go green by switching to electric models that are at least a fifth cheaper to own and run. But van manufacturers are drip-feeding electric vans into the UK market. It’s time to open the tap by regulating vanmakers and make them supply more e-vans to the UK.”

By the end of 2022, the UK will have 43 electric van models on the market – more than double the 18 that were on offer in 2019. And average electric range will increase significantly to 168 miles, up from 139 miles in 2021.

But UK regulations, carried over from the EU, mean manufacturers don’t need to supply many electric vans to meet climate targets – in contrast to electric cars where stricter targets are driving the market and sales are rocketing.

And there are also concerns manufacturers will prioritise supplying the bigger EU market over supplying vans to the UK.

To tackle this, T&E wants a firm target set now for the ZEV mandate – it’s calling for a goal of 20% zero emission vans sold in 2024, supported by high penalties for failing to meet such targets. These will guarantee the supply of e-vans into the UK market.

Ralph Palmer concluded: “A rapid shift to e-vans is a triple-win for our energy security, business costs and environment, slashing climate and air pollution emissions. But without new regulations, UK businesses will continue to be denied the e-vans they want to use.”

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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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