EV v diesel: Would an electric van work for your business?

For decades, diesel power has dominated the world of vans. In a government van survey published in 2021, a massive 97 per cent of all vans were powered by diesel, with 2.7 percent having a petrol engine.

Things are changing, however, with sales of new electric vans hitting record volumes in 2023. The total increased by 21 per cent last year, to 20,253 units – according to figures from the Society of Motor Manufacturers and Traders (SMMT). Even so, that is still just 5.9 percent of the overall market, with diesel accounting for 91.6 percent of van registrations.

Electric vans are expected to grow in popularity as we edge closer to the 2035 ban on the sale of new diesel and petrol cars and vans. By then, the choice of electric vans will be better than ever, supported by a robust network of public charging points. Advancing technology also means vans will be able to travel further on a single charge and carry larger loads.

Here, we look at the current pros and cons of an electric van, so you can see if buying one would be good for your business.

The pros of electric vans

• Cost savings: electric vans are significantly cheaper to run than their diesel counterparts, often as little as half the cost on a pence-per-mile basis. The cost savings will be even greater if the van is charged at home using a low-rate tariff.
• Easier and cheaper maintenance: because electric vans have fewer moving parts, the cost of servicing and repairs should be more affordable. The website WhoCanFixMyCar says a typical cost of an electric vehicle service is £143.75, some £30 cheaper than an equivalent petrol or diesel vehicle. That will soon add up if you run a large fleet of vans.
• Plug-in Van Grant (PiVG): Some new vans are eligible for the government’s plug-in grant. The maximum discount for eligible small vans is £2,500, increasing to £5,000 for some large vans.
• Zero tailpipe emissions: electric vans produce no carbon dioxide (CO2) or nitrous oxide (NOx) emissions while driving, which is better for local air quality. Their position is even stronger if the energy required to recharge the van comes from a renewable source.
• Exemption from clean air zone charges: electric vans are exempt from the UK’s ULEZ and LEZ restrictions. Electric vans are also eligible for a 100 per cent discount on the London Congestion Charge until 24 December 2025.
• Strong brand message: making a delivery or arriving at a customer’s door in a quiet and clean van creates a better first impression than turning up in a noisy diesel with smoke belching out of its exhaust. If you promote your business as green and ethical, an electric van is almost essential.
• Quieter and easier to drive: if you’re old enough to remember when the milkman arrived in the early hours in an electric milk float, you’ll know that electric vans are considerably quieter than traditional vans. Indeed, the sound of the milk bottles clinking in the crates was the loudest noise.

The cons of electric vans

• More expensive to buy: electric vans are significantly more expensive than their diesel counterparts. For example, at the time of writing, prices of the Peugeot e-Boxer Panel Van range from £50,500 to £52,500 before the PiVG. Although it’s not necessarily comparing apples with apples, the diesel Peugeot Boxer Panel Van ranges from £30,500 to £34,500. Similarly, a new Vauxhall Vivaro with a diesel engine will cost between £29,000 and £33,000, while prices of the electric version range from £43,000 to £48,500 before the PiVG. Prices quoted are all excluding VAT.
• Access to a charging point is required: it’ll be cheaper and more convenient if you have access to a charging point at home or work. 
• Reliance on public chargers can be a problem: although the infrastructure is improving, having to spend time at a public charging point will eat into your working day. You also need to factor in the possible queues and faulty charging points. It’s more expensive to charge at a public charging point as well.
• Less choice: according to Zapmap figures, there are 60,000 electric vans in the UK, but there is still a greater choice of diesel vans, especially on the second-hand market.
• Lower maximum payload: some electric vans offer a slightly lower payload due to the weight of the battery pack, although this isn’t likely to be a problem in small and medium vans.
• Electric range: while it’s true that the range of a diesel van is limited to the amount of miles you can squeeze out of a tank of fuel, you need to consider the distance you can travel on a single charge. Figures suggest that the range will drop by 14 per cent when fully loaded, while towing will reduce an electric van’s range by 23-31 per cent.

How far can electric vans travel on a single charge?

The table below shows the official range of selected electric vans that are currently on sale:

Figures are based on the official WLTP combined test and will vary according to battery size.

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