The consumer market for electric vehicles is growing rapidly. However, electric commercial vehicle sales are even more promising. Inherent cost advantages are leading more companies to consider using these options in their fleets, pushing the entire industry forward. It seems nowadays, the battle of an electric car vs a petrol car is only going one way.
If you are considering adding these EVs to your fleet, this article will help. We explain why electric commercial vans and trucks are becoming more popular, their benefits, and the costs of switching from ICEs. We also explore the future of EV technology and what might be in store for businesses for the rest of the 2020s.
The Rise of Electric Commercial Vehicles
Businesses are becoming more interested in electric vehicles (EVs) because of their potential to enhance transport operations, and with each electric vehicle having a tremendous car battery, their value is a no brainer. Vans and lorries with electric motors could lower haulage and distribution costs and sweeten margins, while boosting business sustainability.
Furthermore, governments worldwide are incentivising this shift through various policies, including tax breaks for low-emission vehicles, stricter diesel emissions rules, and subsidies for new vans. Companies like UPS and Amazon are already committing to these vehicles, with others expected to follow soon. Brands want to use the electric commercial vehicle revolution to promote their green credentials and gain the respect of their audiences.
Benefits of Electric Vehicles (EVs)
EV benefits are driving this coming revolution. Companies like the idea of killing two birds with one stone: lower operating costs and appeal more to their audiences.
Specific benefits of commercial EVs include:
● Lower ongoing operating costs. EVs cost around 50% less per mile, allowing companies to reap substantial savings if they do high mileage.
● Reduced maintenance. EVs decrease service disruption and unpredictability compared to breakdown-prone internal combustion engine (ICE) vehicles. Electric motors are less likely to go wrong since they have so few moving parts compared to ICEs.
● Brand image. Companies also want EVs because of the superior brand image they offer. Firms can tout their green credentials and encourage consumers to shop with them due to higher efficiency and lower CO2 production.
● Enhanced performance. EVs offer higher performance than equivalent ICE vans because of electric motors’ inherent properties. Vehicles are faster and perform better.
Combined, these benefits represent a new status quo for many companies. Lower maintenance costs, higher predictability, and improved brand image make them compelling fleet vehicles.
Environmental Impact of EVs
Electric vehicles' environmental impact is considerably lower than ICE counterparts across several domains. But why, specifically?
One reason is that EVs don’t produce tailpipe emissions. As such, they aren’t responsible for the diesel- or petrol-related fumes that cause breathing difficulties, slashing air pollution. This compares to the average ICE van, generating over 180.8 grams of CO2 per kilometre, about double the average small petrol hatchback vehicle.
The elimination of emissions also cuts the production of other harmful compounds like nitrogen oxides and particulate matter. These components can make breathing difficulties worse and lead to chronic, life-threatening conditions. EV technology prevents this, reducing risks for pedestrians, cyclists and other drivers in urban regions.
EVs also offer substantial noise reductions compared to conventional ICE vehicles. Estimates suggest that the annual cost of noise pollution across Europe is around £40 billion. However, EV trucks and vans could reduce this figure, enhancing productivity and cutting healthcare costs.
Finally, EV vans and lorries can contribute to the renewable energy transition. Their batteries can support grid solar and wind electricity generation, supporting movement away from fossil fuels.
Cost Savings with Electric Commercial Vehicles
The cost savings of electric commercial vehicles could be substantial. However, it depends on how brands use them.
1. Fuel Savings
Electric commercial vehicle fuel savings against fossil fuels could average £0.08 to £0.16 per mile, which could equate to £8 to £16 over a 100-mile trip. This saving is possible because electric energy converts more efficiently and less expensively into vehicle motion than conventional diesel or petrol.
2. Maintenance Savings
Commercial operators could also benefit from maintenance savings. Running electric commercial vehicles is considerably less expensive, with estimated service expense reductions of up to 40%.
These efficiencies come from two sources:
● The fact that electric vehicles require less servicing overall due to fewer moving parts
● The fact that electric vans are less prone to service-disrupting breakdowns that can jeopardise business operations
3. Incentives
Finally, commercial vans can benefit from various government incentives. For example, UK vehicles may qualify for a “plug-in grant.”
Future Trends in EV Technology
What the future holds for commercial EV technology remains unclear. However, changes occur every year, suggesting the current trends will continue for some time, improving the value proposition of these vehicles.
The main hope is for better battery technology. While lithium-ion is good enough, it is expensive, prone to fires, has limited energy density, and has a relatively short lifespan.
Sodium-ion batteries are a solid-state alternative currently in production. These could provide a cheaper, more reliable alternative for commercial fleet operators in the future, bringing down the upfront cost of electrification substantially.
Lithium-air is another technology. Unlike lithium-ion, it is not prone to fires and can withstand impacts with other vehicles without the same level of risk.
Finally, some manufacturers are considering lithium-sulfur batteries, which use sulfur for the cathode material. These can store much more energy than lithium-ion, allowing manufacturers to lower their weight and volume, or offer longer range for delivery operations.
So there you have it: some of the ways electric commercial vehicles are revolutionising business transport. This change won’t happen overnight, but all the incentives to make it possible are falling into place.
