The recognition of the value of electrification by small and medium-sized enterprises could accelerate the adoption of EVs and significantly benefit both their productivity and the European economy as a whole. However, charging remains a major issue.

These are the main findings of Ford Pro’s research entitled ‘The Economics of Commercial Van Usage Across Europe 2024’, which was published by the Center for Economic and Business Research, known as Cebr.

Cebr’s report estimates that van-related businesses contributed around €1 trillion in 2023 across the EU and the UK – up 6.5% on 2021 and 27.4% on compared to 2017. With that in mind, if these businesses were an EU member state, then its GDP would be the sixth largest. In the European Union, an estimated €14.1 billion (1.6%) of this activity was supported by pure electric vans.

Ford Pro – the #1 commercial vehicle brand in Europe – commissioned the study to better understand the wider European landscape of commercial vans, which are adopted by 23 million small and medium businesses – 99% of the total in Europe.

Initially, it was believed that EV adoption would be driven by corporate sustainability goals and larger businesses with fleet managers. Now, small and medium-sized businesses are increasingly adopting EVs as they recognize the significant business benefits they offer. A survey of more than 1,000 commercial van drivers found that these businesses are already achieving significant savings in energy costs, as well as improved productivity and operations. Even those who have not adopted electric vehicles say they are considering switching to them within five years, despite the fact that charging is an issue that continues to concern them.

“We’ve been helping small businesses build Europe’s economies for nearly 60 years – but the biggest opportunity to improve their productivity and uptime lies ahead,” said Hans Schep, general manager, Ford Pro, Europe. “Florists, plumbers and bakeries will play a leading role in taking electrification to the next level, and we will offer them charging, software and service solutions that will match those of businesses with large fleets of vehicles, so they can to be electrified in the best way for them”.

Ford Pro solutions help managers decide for themselves when and how to electrify to maximize the benefits for their business. In this context Ford Pro offers a comprehensive range of electric and plug-in hybrid vans supported by productivity-enhancing solutions such as vehicle and fleet management software, charging solutions, servicing and financing, all in one package. Last week, Ford Pro introduced a complete home charging solution designed for business needs.

The onslaught of electric vans

The Economics of Commercial Van Usage Across Europe 2024 report reviews a dramatically changed landscape since the previous report was published in 2019, which demonstrates that despite the impact of the pandemic, the cost of living crisis and the war in Ukraine, the impact of van vehicles in the economy has grown spectacularly.

The report includes an update of the Electrification Index, which measures the degree of commercial electric vehicle adoption and future prospects for five important European markets in the van segment: France, Germany, Italy, Spain and the United Kingdom . Taking into account factors such as sales of electric vans, charging points, incentives and the growth of low-emission zones, this index determines that EV adoption and prospects in the above countries strengthened in most markets compared to the last calculation of 2018.

This boost is largely supported by the significant increase in the availability of pure electric vans. For example, Ford Pro has now built or announced electrified versions of every model in the Transit family. The E-Transit – Ford Pro’s first electric van on the European market – recorded more than five times the sales of its nearest competitor in 2023 to lead its segment with a market share of more than 50%.

According to Cebr’s study, electric vans in Germany had the largest share of total registrations in the category in 2023 (9.5%). The UK saw the biggest growth in electric van sales compared to the last report in 2018, with their share increasing from 0.3% to 6%. France, based on this report, is the most promising market in electric mobility, just like in the 2018 report, reflecting the already strong adoption of EVs and high-quality charging infrastructure. Overall, Spain showed the biggest improvement in the Electrification Index.

Survey respondents said reduced running costs were the main reason for switching to EVs (46.3%), with the annual charging cost of electric vans coming in at €3,700, compared to €12,400 for a petrol or diesel van. . Analysis of the total running costs of electric vans compared to their diesel or petrol counterparts revealed that the former can recoup their higher initial purchase costs within three years under normal conditions of use.

Apart from the financial benefits, the research identified other reasons that made small and medium-sized businesses switch to electric vans. In particular, access to low-emission zones was the most common reason for switching (46.3%), while other criteria were concern for the environment (45%) and brand reputation (45%).

Charging time was the biggest concern for those who have yet to make the switch to EVs (38.1%), while initial purchase cost was also a major issue (37.7%). However, among those who have yet to switch to an EV, the majority (58.6%) said they are quite likely to own an electric van within the next five years.

Managers who have already made the transition to pure electric vehicles are much more likely to recognize the importance of technologies and services that support van owners. Among businesses that adopted technologies and software, the vast majority reported positive effects in the area of ​​productivity, particularly for those that adopted vehicle safety and security measures, fleet management solutions and communication software.

Similarly, the vast majority of business software users reported a positive impact on the functionality of their businesses, particularly for those who adopted compliance and reporting systems, telematics integrated with other systems and communications software.

“The transition to EVs could bring significant social benefits both locally and globally, primarily through the reduction of harmful pollutants and greenhouse gas emissions,” said Nina Skero, CEO of Cebr. “Our analysis also shows that vans already support a significant proportion of economic activity in all European markets. Indeed, van-dependent industries contributed €860 billion to the European Union’s economies last year. The percentage of this amount attributed to electric vans is expected to increase as their adoption continues and more businesses realize the operational cost savings they can achieve.”