In a rapidly changing landscape for commercial vehicles, the Centre for Economics and Business Research (CEBR) has delivered its Economics of Commercial Van Usage Across Europe 2024 report exploring the benefits, drawbacks and economic role of the electric van across Europe. From economic contributions to the challenges of going electric, this study commissioned by Ford Pro offers plenty of food for thought for business owners and policymakers alike.

Vans Drive €136 Billion in UK Economic Activity

In the UK, van-reliant industries produced an estimated £113 billion in economic activity in 2023, making them an essential part of the economy. While this figure is slightly below pre-pandemic levels, the sector remains vital for industries such as construction, deliveries, and repairs.

Interestingly, the UK’s van economy grew by 7.4% in new vehicle registrations as a share of the total fleet in 2023, an indicator of resilience despite challenges like the energy crisis. Low-emission zones in major cities also play a role in shaping the landscape, pushing businesses to adopt greener options.

Electric vans are gaining ground in the UK, though not as quickly as in some other European countries. By 2023, 6% of new van registrations were electric, a notable increase from just 0.3% in 2018. The UK’s overall performance has slipped behind that of other European countries, partly due to high electricity costs and slow fast-charger deployment.

Electric vans benefits include cheap energy

Despite this, government incentives, such as grants for workplace charge points and tax breaks for electric vehicle purchases, are making strides to encourage adoption. Under the current Plug-in Van Grant scheme, businesses can claim up to £5,000 for electric vans, helping to offset initial costs.

The Ford Pro study also highlights that small businesses in the UK could save over £11,600 per van across three years. These savings come from reduced charging costs compared to refuelling and lower maintenance expenses. The financial advantages are compelling, with service and repair costs estimated to be 40% lower for electric models.

Why UK Businesses Should Go Electric

For UK businesses, the financial case for going electric is increasingly compelling. Over three years, small businesses could save more than £11,600 per van — a figure that breaks down into several key areas:

  • Charging Costs: On average, charging an electric van costs £3,075 annually, compared to £10,300 for refuelling a diesel or petrol model. That’s a potential saving of nearly £7,225 per year per van.
  • Maintenance Savings: Electric vans are mechanically more straightforward, with annual maintenance costs averaging £1,165 compared to £1,415 for traditional vehicles. Over three years, this amounts to additional savings of £750 for each van.
  • Lower Depreciation for Larger Vans: The CEBR report highlights that large electric vans experience lower net depreciation costs than diesel models. This offers businesses long-term financial benefits, especially for fleets, and can lead to lower leasing and financing costs.

Ford Pro is also easing the transition for businesses through tools like E-Switch Assist, which evaluates which vehicles in a fleet are most suitable for replacement with electric models. So far, 50,000 vehicles in Europe have been assessed using this tool, offering small businesses a clearer path to electrification.

Challenges Slowing Electric Van Adoption in the UK

While the benefits are clear, UK businesses face several significant hurdles. High upfront costs remain a major issue, with a small electric van costing, on average, £29,910 compared to £19,950 for a diesel or petrol equivalent. Even with government grants, the financial leap can be daunting for smaller operations.

Charging infrastructure has also failed to keep up with demand. Although the UK has increased its charging points to 108 per 100,000 people — nearly four times as many as in 2018 — the share of fast chargers remains limited. This leaves many businesses concerned about charging time, the top concern of 38.1% of surveyed van drivers.

Ford Pro Charging software offers a partial solution, enabling businesses to schedule charging during off-peak hours to cut energy costs further. This level of flexibility could mitigate some concerns, especially for smaller operators with tighter budgets.

Electric vans benefits include easy charging

Technology Adoption in the UK

UK businesses adopting electric vans are also embracing technology to improve efficiency. Vehicle tracking systems, fleet management software, and telematics integrated with inventory systems are becoming more common. Among electric van users, 42.9% reported using advanced safety and security technologies, compared to 29.6% of diesel van drivers.

These technologies are not just trendy add-ons — they deliver measurable results. Fleet management solutions and communication software have significantly boosted productivity for early adopters, while advanced tools like Ford Pro’s Charging software help businesses optimise operations. With low-emission zones further encouraging adoption, technology and electrification are becoming intertwined priorities for UK businesses.

Real-world examples illustrate the potential. Delivery firms and market traders operating in urban low-emission zones report significant savings by switching to electric vans. Beyond cost benefits, these businesses enjoy operational advantages, such as easier access to restricted areas and simpler maintenance processes.

Delivery company France Alliance 56 delivers parcels in the Morbihan region of France. Previously, the business relied on diesel-powered vans. Today, it operates E-Transit vans supported by Ford Pro Charging solutions, making energy cost savings of more than 80%.

“Once drivers come back, it’s easy for them to recharge the vans. Within ten seconds, they’re out of the cab, at the charge point and plugging the van in. It couldn’t be simpler,” said Willy Le Gouellec, manager at France Alliance 56. “The software is easy to use for me, too — I can see each vehicle and how much range it has left. We’re seeing a major advantage.”

Electric vans benefits in urban areas

The report clearly identifies one significant benefit: the ability to save money on fuel immediately, especially when charging during off-peak hours. Businesses in urban settings, especially those frequently entering low-emission zones, will also benefit from reduced or even zero fees, providing both direct and indirect cost savings.

While the transition to electric vans in the UK stalls, businesses across Europe are discovering not just environmental benefits but also significant cost savings. Challenges remain, particularly in the UK, but the road to electrification is becoming clearer with each passing year.

Phil Huff
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