Electric SUVs prove viable fleet alternative to vans

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Electric SUVs are being adopted by some fleets as an alternative to diesel and electric vans, Arval UK has reported.

If the space, payload and towing capacity offered by eSUVs is adequate, they can bring a wide range of advantages over their e-van counterparts

The company says that if the space, payload and towing capacity offered by eSUVs is adequate, they can bring a wide range of advantages over their e-van counterparts – eradicating some of the challenges with van electrification and helping fleets go electric quicker.

Ben Edwards, consultant, said: “We’re at a moment in time when, having largely completed electrification of their car fleets, many businesses are looking to their light commercial vehicles (LCVs) and wanting to complete a similar transformation. However, for some, the current e-van choices available present some operational issues for their needs, especially around range and payload capabilities.

“We have been working with several of these fleets and have presented the concept of using eSUVs as an alternative. It’s quite a radical idea in itself – replacing vans with cars – but it does have many benefits as long as a model with sufficient carrying capacity can be identified.”

Key advantages include typically higher ranges from electric SUV – often up to 250-300 of real-life miles, solving the key problem that these fleets wanting to electrify their LCVs are facing.

Security and safety features offered by the car choices are frequently more advanced, offering better protection for whatever products and equipment are being carried, as well as more driver safety features such as parking and lane keep assistance technology.

Further benefits include enhanced charge point accessibility – although latest initiatives such as charge hubs and electric freightways do now cater for larger vehicle and tow-charge requirements.

And supply is a further advantage – brand-new eSUVs are more easily available than vans, certainly for some of the models that fleets are adopting and a particular consideration where fleets want to hundreds of identical, standard models across all of their activities.

There is also a human resources advantage to this, as Edwards explained.

“Generally, drivers would rather have an eSUV than a van and the current Benefit-in-Kind taxation situation makes this viable for almost all employees and comparable with van taxation.”

He added that the whole-life cost comparisons between SUVs and vans were often broadly similar but that this was not always the number one consideration for fleets making this decision.

“The businesses making this move have often made corporate environmental commitments with comparatively short timescales and this is a significant driver behind their current decision making. They want to electrify quickly and the eSUV route is allowing them to achieve this.”

He added that some LCV racking and conversion companies were already taking note of the trend towards eSUVs and producing products especially designed for this sector.

“We’ve been working with supply partners to increase the practicality of eSUV models for specific clients and been pleased to find that they have already been thinking about these vehicles and how they can be made more practical as a van replacement.

“There is also the option of liverying the eSUVs, which can be done in a manner that presents a strong corporate image but can easily be removed when the vehicles are eventually defleeted, ready for private buyers in the used market.”

Whether the move away from vans and towards eSUVs is a long-term trend or a solution that would just last one or two replacement cycles is less clear – and the arrival of more practical eLCV solutions could change future approaches.

“As a strategy, this is very much a reaction to current conditions when it comes to electrification. Crucially, we expect to see the range and charging infrastructure to support e-vans improving over the next few years while other options such as hydrogen could start to make something of an impact. The pendulum could yet swing in the other direction and increases the opportunity to choose a zero-tailpipe emission vehicle over a petrol or diesel van.”

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Natalie Middleton

Natalie has worked as a fleet journalist for nearly 20 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day. Natalie edits all the Fleet World websites and newsletters, and loves to hear about any latest industry news - or gossip.