Simon Simmons, LCV national corporate sales manager at Alphabet GB, on why fleets should be exploring electrified LCVs and the main considerations for operators. 

Simon Simmons, LCV national corporate sales manager at Alphabet GB

With sustainability becoming a viable point of differentiation for businesses, where should companies concentrate their efforts when going green?

Undeniably, there’s been progress in the electrified vehicles market with the increased focus on climate change over the last few years. Discussions are now centring around why sustainable supply chains and procurement policies should be the next area of focus for businesses looking to ‘go green’. Light commercial vehicles facilitate last-mile deliveries and form work vehicle fleets, so often play a pivotal role in supply chains. The electrification of LCVs is undoubtedly one way for businesses to reduce carbon emissions and to help meet their sustainability targets. There are already some existing eLCV fleets, but more companies still need to make the change to reach net zero requirements. Fleet managers are in a position to kickstart the transition to electric today.   

What have been some of the challenges that have prevented businesses adopting eLCVs to date?

eLCV adoption was initially hampered by range anxiety which, in some situations, was understandable. Early eLCVs introduced to the market were limited in battery range and did not provide a suitable business proposition for the miles LCVs are required to travel. Vehicle and load size can also influence battery range and potentially increase charging frequency. This has been another issue that slowed down eLCV adoption in the past. 

For most businesses this is now no longer an issue. Advancements of the vehicles and battery technology means that journey range has increased to c.200 miles according to the latest WLTP figures, which is more than sufficient for small to medium-sized vans and the mileage required by those using these vehicles. We are currently helping Believe Housing transition its fleet to EVs, supporting an average daily mileage of around 100 miles, for example. This is a realistic representation of LCV mileage and well within eLCV range. 

So, businesses no longer need to worry about journey range then?  

Every business has different fleet needs and objectives, so it remains an important part of the electric journey for businesses to consider and understand as they choose the best solution for their requirements. Payload, for example, is something that might be important to note as this does cause journey range to differ. However, the impact of payload on eLCV energy consumption is largely comparable to diesel LCV fuel consumption. Diesel LCVs show around a 20% increase in fuel use for a 75% payload versus a 0% load and fleet managers can expect to see similar eLCV performance compared to previous diesel fleets.  

Is the UK’s charging infrastructure ready to support this increase in EV demand?

The rise in EV adoption has actually been mirrored by a surge in charging infrastructure across the UK. For eLCVs that are returned to a depot at the end of a day, charging is simple, especially if working with the right partner that ensures businesses are set up for this. For employees charging at home though, the alternatives of home or kerbside charge points need to be considered. 

Kerbside charging points are becoming increasingly common and street furniture has been adapted to enable charging capabilities in some areas. There are also portable EV chargers currently in the prototype stage, which aim to bring ‘home charging’ ability to those who are currently unable to plug-in at their house. There is progress still to be made, but it’s clear that a lot has now moved forward when it comes to charging infrastructure. 

Do businesses have a role to play in advancing charging infrastructure in the UK? 

Businesses in both the leasing and EV space are working on progressing charging infrastructure as quickly as possible and supporting new EV drivers with their vehicles. Alphabet, for example, partnered with Shell Recharge Solutions in the summer of 2020. Our objective is to simplify the charging journey for Alphabet drivers and provide customers both at home and in the workplace with charge points. Partnerships such as this help create a smoother EV transition. 

Given all the positive advancements across the industry and the benefits that electric offers businesses, why aren’t more making the transition?

The main challenge for fleet managers can be to persuade the wider business that the transition to eLCV is a feasible option financially. The upfront cost of EVs can be daunting. Yet, when whole life cost (WLC) is considered, the figures become much more welcoming.  

The fuel cost per mile is much cheaper for electric vehicles. Diesel is currently above £1.70 per litre which means LCVs can be costly to run with their 100 miles daily in comparison to electric at around 5p a mile. This is under a third of the cost. The high daily mileage points out that these savings will quickly decrease the initial expense. This is before tax savings for businesses have been considered. Benefit in Kind tax relief remains at competitive rates for the coming years, so employees will receive a pay rise from personal savings made in tax.  

Finally, what would you say to fleet managers who are still hesitant about making the move to electric?

There are many benefits in transitioning fleets to eLCVs, not only for green credentials, and positive brand uplift, but from a business perspective too. Fleet managers should act now and introduce electrified LCVs into their fleets sooner rather than later. Businesses will then be able to better understand the vehicles and new technology, providing time to develop their fleet and ensure it meets operational requirements.