Automotive and mobility Archives

A compelling story is unfolding in the rapidly changing world of the automotive industry —one that goes beyond data and trends. Amidst the pandemic, I, like many others, revamped my shopping routine, shifting from in-store experiences to the online platforms that have reshaped how products reach our doorsteps.

The unsung heroes of this transformation? Delivery vans.

The European light commercial vehicle (LCV) sector has seen almost a decade of consistent growth. This trend is set to continue, fuelled by the continuing surge in delivery demands from e-commerce, the expanding online grocery sector, and the recreational-van market’s reliance on LCVs.

Speeding towards a new era of eco-friendly delivery

The transition from internal combustion engines (ICE) to electric vehicles (EVs) has been nothing short of remarkable. In less than a decade, EVs have evolved from niche products to the inevitable future of automotive, and commercial vehicles are no exception. As the UK and Europe commit to ending ICE sales by 2035, the message for fleet managers and business owners is crystal clear: adapt or risk falling behind.

Yet, this shift isn’t without its challenges. Our research reveals concerns among UK fleet managers and LCV drivers about transitioning from ICE to EV. Issues such as high initial costs, insufficient charging infrastructure, ongoing operational expenses, and limited EV range are reasons for apprehension.

“The cost at the moment is high and I could not afford to replace the vehicle I have. I do not have any electric points, places where I can re-charge a vehicle and I do not know how much it would cost to re-charge a vehicle. Do not know how reliable it would be or if anyone could service it.”

“Available charging points may be an issue. The cost to run will probably be better but the initial costs to install charging points at the office would be difficult and the guys take the vans home in the evenings and won’t have access to charging stations.”

“They are more expensive, only the wealthy can afford them. Also, they are stressful to re-charge at times, you do worry about running out in the middle of nowhere.”

Despite these concerns, 52% claim that environmental sustainability will influence their next van purchase. This creates a gap in the market, with SMEs and larger fleets struggling to obtain affordable electric commercial vehicles (ECVs) due to high demand, and limited supply from traditional automakers.

New players are leading the charge

The void left by established automakers in Europe has paved the way for new entrants, particularly those from Asia. ECVs from innovative brands are already hitting the streets at breakneck speed – these players have spotted the opening and are wasting no time in seizing the opportunity.

Take Maxus, from China’s SAIC Motor Corp., as an example: with the eDELIVER3 priced at £34,000 (ex VAT), Maxus has already made substantial sales in Western Europe and Scandinavia and is planning further expansion across Central Europe. In 2022, Maxus already held around 6% of Europe’s new ECV market, surpassing Ford, Nissan, and Fiat.

Maxus isn’t the only brand with eyes on Europe: Geely’s Farizon aims to enter the market by 2024 and B-ON (which acquired the StreetScooter ECV brand) is expanding German production. Meanwhile, in the United States, General Motors’ BrightDrop brand is following suit with its own expansion plans.

The road ahead is long, but the time for action is now

In this evolving landscape, LCV incumbents must prioritise EV adoption to meet customer needs and maintain market share. Every day of delay risks ceding ground to new competitors, as they gain momentum, build brand awareness and acquire customers. The electric van revolution is underway, and the question is whether traditional brands can catch up or risk being left in the fossil fuel past.

The presence of these newcomers also prompts important considerations for commercial van owners and fleet managers. Are they contemplating these new brands for future purchases, potentially disrupting the dominance of traditional van makers? It’s a critical moment in the industry, demanding careful consideration of options.

In concluding my journey from traditional shopping to the heart of the ECV revolution, the path forward appears promisingly electrifying. E-commerce continues to surge, driving demand for last-mile deliveries and cleaner, more sustainable transportation options.

Amidst this transformation, my personal shift from traditional to online retail is a small part of a larger narrative emphasising innovation, adaptability, and the evolving nature of urban logistics. ECVs are no longer a futuristic concept; they are today’s reality, reshaping how we receive online purchases and paving the way for a greener, more eco-friendly future.

What lies ahead for the European van market? The future of electric vans shines brightly, but for traditional brands, clarity remains elusive. One thing is certain: the road ahead is filled with opportunities for those ready to embrace it.

Learn how we can help seize the opportunity:

The transition to a more sustainable future is underway. The UK government’s current policy aims to end the sale of petrol and diesel vehicles by 2040, putting electric vehicles (EVs) at the forefront of discussions. But that doesn’t mean they are without controversy. We have been closely monitoring and analysing online conversations (in partnership with Uptowns) about EVs and their impact on society.

Future EV owners have various concerns, including the cost of buying and running an electric car and the range and availability of charging points. However, what interested me were the debates questioning EV sustainability.

While some view EVs as a notable positive change in the fight against global climate change, others remain sceptical about their overall environmental impact. Here are the topics that caught my attention:

One of the major criticisms of EVs is the extraction of minerals required for their batteries. The monopoly of Chinese companies in the mineral market concerns many online who fear the exploitation of developing countries.

The non-renewable nature of lithium also raises questions about the viability and volume of available reserves, with many foreseeing a future shortage. These concerns are crucial, considering the eco-conscious audiences who expect transparency and responsibility from the industry.

The electricity required to supply a global fleet of electric vehicles is another critical consideration. National capacities to support such demand are regularly discussed, particularly in countries where the nuclear energy industry remains underdeveloped. What would a complete transition to EVs mean in terms of energy demand? What energy governance challenges would such demand entail? Are the current power generation systems consistent with the “green” credentials of EVs?

Some argue that transitioning to EVs will mean the transformation of cities and the countryside. EVs require charging points that take up space and can be perceived as hazards. In cities, many worry that the installation of charging points will cause damage to historic sites and harm the atmosphere. The speed of change, inclusivity and public dialogue are all essential considerations.

These concerns are not exclusive to the alt-right or radical left but are shared by individuals from all political affiliations. The fact that well-sourced and impartial arguments giving an upbeat assessment of the impact of EVs are rare adds to the scepticism surrounding EVs’ green credentials.

While EVs can potentially be a ‘game-changer’ for the climate, these findings show that many still need to be persuaded about their environmental impact. The industry needs to be transparent and responsible, and the public must be informed and involved in the discussion to ensure a sustainable and eco-friendly future.