EV switch ‘could cut annual fleet costs by £1,500 per van’
Zero emission vans can work for a living, but it's an argument few companies are buying.
Switching from diesel to electric vans could slash typical fleet costs by £1,500 per vehicle each year.
For HGV fleets, a similar transition could generate £3,500 reductions in operational costs, new research claims.
The savings are delivered over an annual distance of just 15,000 miles, meaning higher mileage fleets could achieve even greater efficiencies.
The report’s authors say the predicted savings hammer home the economic viability of transitioning to electric vehicles and the efficiency gains that can be realised, which could transform business profitability at a time of steadily rising costs.
Nick Harvey, senior programme manager at the Energy Saving Trust, which collaborated with REA (The Association for Renewable Energy and Clean Technology) on the report, said: “Electrifying fleets contributes to a more sustainable future and offers potential financial benefits.
“Fleet managers can achieve significant cost savings - up to £1,500 annually per light commercial vehicle and approximately £3,500 per rigid HGV.”
Savings are achieved because electric vehicles only consume around 30% of the energy that a diesel equivalent needs to deliver the same performance.
A crisis of confidence
The report comes at a critical time for van fleet transition, with the industry facing a crisis of confidence over the switch away from diesel.
The government’s Zero Emission Vehicle Mandate expects 10% of all new van sales to be zero emission vehicles this year, rising to 70% by 2030. The new Labour Government also says it will reintroduce a 100% EV sales target for 2030 that was abandoned by the previous Conservative government, although it is yet to clarify if this commitment applies to both cars and vans.
Despite the threat of hefty fines for missing the targets, van manufacturers’ new vehicle sales are falling far short of this year’s goal. The Society of Motor Manufacturers and Traders says the EV van market will be below 7% market share in 2024.
Even that modest goal presents a stretch for a market currently unwilling to make the break from diesel. For the year to the end of July, the market share of new electric van sales under 3.5 tonnes was down 5.5% compared to the same period in 2023, at 4.8%.
Mike Hawes, SMMT Chief Executive, said: “Declining uptake of the very greenest models remains a major concern given the UK’s zero emission ambitions. Industry has invested – and continues to commit – billions into this transition but manufacturers cannot deliver this alone.
“Given the paucity of van-specific charging infrastructure, we need an equally ambitious mandate for chargepoint rollout, one that supports operators right across the country.”
Future of Roads Minister Lilian Greenwood said fleets have a ‘big part’ to play in the transition to new road fuels and promised more support.
Greenwood added: “A cleaner greener transport network is a key priority for this Government, which is why we have plug-in grants available for vans and trucks and programmes aimed at scaling up zero emission HGVs to decarbonise road freight.”