Not enough people are living their best e-van life yet. Think back just five years though, Covid was virtually unheard of, Ford had not yet launched the E-Transit, and Mercedes was celebrating the 90- mile range of the new eVito. Surpassing 100 miles felt like the Holy Grail! The rapid pace of 21st century change is relentless, and the hard-hitting reality is that vans are responsible for 40% of all logistics industry pollution, underscoring the urgency to meet ZEV targets.
Amidst widespread consternation regarding £40bn in tax rises in Chancellor Rachel Reeves’ first Labour Budget, there was clarification that the PIVG would be extended by a year, originally 31 due to end March 2025. However, with declining sales there is still work to be done to boost e-van uptake. As legislation forces manufacturers to impose order quotas to meet ZEV mandate, e-vans are being ‘forced’ onto fleets for which they effectively don’t work. So, what hurdles need to be overcome before the market sees an uptick in e-van sales?
Understanding resale values
The resale market for electric vehicles is relatively new and still evolving. For fleets evaluating ‘Total Cost of Ownership’ (TCO), knowing a vehicle’s resale value is crucial. Some fleets have turned to secondary leasing of younger EVs to soften the impact on residual values,
helping to prevent a potential surplus of used EVs on the market. Progress has been slow, but there are encouraging signs. Commercial vehicle consultants Vahana Automotive report that average three-year residual values for e-vans currently stand at 73.3% of the original list price, thanks in part to the Plug-In Van Grant (PIVG). Without the grant, that figure adjusts to 58.6%, still notably above the 52.9% for diesel vans.
Addressing the skills gap
Thanks to lessons learnt from electric cars, most UK fleet operators are already expert in e-van service, maintenance and repair (SMR). However, a technical skills gap remains a challenge. Fortunately, the essential training infrastructure is making strides forward. According to the Institute of the Motor Industry (IMI) it’s made significant strides in getting the UK government to focus on what happens outside the factory gates, but the journey ahead remains long with a predicted shortfall of 16,000 EV trained technicians by 2035.
Recycling and end-of-life solutions for batteries
Welcome progress is also being made on sustainable disposal. In one of his first acts as Prime Minister, Keir Starmer appointed Sir Patrick Vallance as Minister for Science, who has led calls for the UK to expand its EV battery recycling capacity. Meanwhile, organisations specialising in dedicated lithium recycling and battery recycling are making welcome investments, which bodes well for a more sustainable end-of- life cycle for EV batteries.
The UK e-van market faces undeniable turbulence. Competition on pricing and aftersales is picking up though, and the latest e-vans are more enticing than ever. As global efforts intensify to mitigate climate change, e-vans must “come of age.” It is a strong bet that the key to widespread e-van adoption lies in good old carrot and stick – generous incentives to go green, along with rising diesel taxes. The challenge, however, lies in striking the right balance to make e-van adoption accessible and appealing to all, so every user can truly embrace their ‘best e-van life.’
To find out more about transitioning to e-Vans and other topics, to help businesses navigate the changes impacting fleet management, visit https://www.venson. com/white-papers/
Get in Touch:
Tel: 0330 0947 803
