Van fleets play the waiting game

Additionally, Cane reports no issue with battery degradation – a concern among some van operators. He says: “From a performance viewpoint the electric vans on our fleet have ticked all the right boxes.”

George Alexander, chief editor commercial vehicles at Glass’s, says: “Despite all the pessimistic comments there is enthusiasm for electric vans and Renault has put together a very creditable package. The sums just about add up versus a diesel van for the right customer.

“Any self-respecting transport manager would by now have looked at the technology to see if it is viable within their fleet profile. In the right operation the Renault package has many bases covered.”

With operating costs and residual values a largely unknown quantity, Alexander believes the leasing model is the best option to avert taking risks with very expensive, unproven technology.

When comparing vehicle operating costs, Gary Whittam, European sales and marketing director at Azure Dynamics, believes fleets must throw out the historic replacement cycle rule book, which typically dictates that vans must be replaced at intervals of up to five years.

“The monthly wholelife cost of running a diesel van versus an electric van is about the same,” he says. “However, 72% of diesel van costs are in the running of the vehicle, but only 12% of electric van costs relate to running the vehicle.”

Therefore, with the Ford Transit Electric Connect costing £39,999 to buy (it can also be leased), he says: “Businesses need to operate electric vans for as long as possible. Replacement cycles must be adapted. Once a vehicle is paid for, run it into the ground.”

According to Azure Dynamics, fleets buying an electric van for use in an urban environment would start saving money at between four and four-and-a-half years. It claims that the Transit Connect Electric requires less than 50% of the service time and cost of a diesel version.

Electric vehicle depreciation is a step into the dark for fleets with virtually no historical price performance data available.

Tim Cattlin, editor, CAP Commercial Vehicle Monitor, says: “Because the wealth of evidence available for other vehicles is not yet in existence for battery life for example, CAP forecasts mirror the expected caution exercised by potential trade purchasers.

“It is possible that if batteries prove to have sufficient longevity, then this position will change and residual values could potentially be very strong.

“Until that evidence has been gathered over time, however, the forecast residual value position will inevitably reflect caution over battery life in particular.”