Dino Papas, fleet and equipment manager at Tesco Dotcom, told a meeting of Fleet200 members in March: “We’re not going to pursue electric vans any further in the short term.

“The estimated maintenance cost was expected to be about half as much for diesel vans, but it has turned out to be 1.5 times as much. The expected overall cost was anticipated to be about 90% of diesel vans, but it has been higher.”

He added that range was a fundamental issue and as some of the smaller stores from where the vans operated closed and were consolidated into larger ones, the distances the vans were required to travel became greater.

However, he said customer feedback to deliveries by electric van had been positive, but vehicle range needed to be 150 to 200 miles to help make it work effectively.

Azure Dynamics, which provides the technology behind the electric Ford Transit Connect, has filed for bankruptcy protection in Canada.

The latest development by the loss-making company has cast doubt on the future of the electric Transit Connect, although Ford says it remained committed to pursuing electric powertrains.

A Ford statement said: “Azure Dynamics established its own dealer network and dealer agreements. In the UK this was set up with the Ford Retail network of dealers. Ford Retail sold a total of 17 Transit Connect electric vehicles.

“Ford’s priority is to ensure that Azure’s Transit Connect Electric customers continue to have support throughout their ownership experience.

“Our Ford electric vehicle product plans remain on track, as part of our commitment to provide customers with a full range of low CO2 powertrain choices across our line-up – from Econetic diesel and Ecoboost petrol-powered vehicles to hybrids, plug-in hybrids and full electric vehicles.”

The BVRLA has called for both electric van makers and the Government to work together to do more to encourage customers to switch to electric vans.

“This well-researched report is a massive wake-up call for electric van makers and the Government,” said BVRLA chief executive John Lewis.

“The Government has put its money where its mouth is by delivering the Plug-in Van Grant and other tax incentives, but it needs to give operators confidence that these will be more than just short-term measures.

“And van makers must join the party. Rather than relying on Government grants to discount their vehicles, they need to produce some serious price cuts. Their current business model doesn’t work.”

The BVRLA is urging manufacturers to follow-up on the report’s suggestion that they investigate the business case for bringing more hybrid powertrains to market, particularly for smaller vans, where the economics are much more favourable.

“The vehicle rental and leasing industry is ready and waiting to step in and help create a sustainable market for ultra-low emission vans, but fleets make decisions based on cost more than sentiment,” said Lewis.