Government support could spur major fleet demand for electric retrofit of vans

By / 1 year ago / UK News / No Comments

The Government is being urged to provide support for new range-extender technology that could be retrofitted to thousands of diesel vans already on the roads, cutting business costs and slashing UK emissions.

Bedeo’s founder Osman Boyner says France is ahead of the UK in subsidising the retrofit of diesel vans to electric

A new survey by electric vehicle supplier and manufacturer Bedeo (formerly known as BD Auto) has found that a fifth (20%) of fleet managers would choose to retrofit their existing commercial vehicles in the immediate term to decarbonise, saving them the full cost of replacement while their vans still have plenty of miles on the clock.

And if all 20% of the UK’s large van fleet (approximately 150,000 vehicles) were to be retrofitted rather than replaced, British businesses could save some £5.5bn by 2035 according to its research.

Bedeo recently launched its RE-100 Range Extender – an advanced retrofit solution which fits to existing diesel vans to make them both electric (first) and/or diesel at the touch of a button. It gives vans 117km (73 miles) of electric range to add the existing c. 600km (373 miles) of diesel range, solving range anxiety issues and low-emission concerns in city centres in one solution. Importantly it doesn’t compromise load space.

But while the French Government offers a €9,000 (£7,868) retrofit subsidy, no such subsidy is available in the UK.

That’s despite the firm’s extensive research showing strong demand for the solution.

Its analysis of 200 named operators of major fleets has found managers see range, availability and cost of new electric vans as barriers to adoption.

Of those fleet operators who were considering new vehicles, more than half (51%) were concerned that the lack of available range with new electric vans would negatively impact operations, and two out of five (40%) said that electric vans were simply too expensive. A similar number (35%) said that even if they were inclined to buy new, the product range was currently too limited.

A number [40%] said that the deadline ‘was still a long way off’, causing concern that some would understandably use this as a reason to kick the decision down the road.

“This is precisely where retrofitting can fit in,” said Bedeo’s founder Osman Boyner, “in giving businesses a cost-effective solution that accelerates their journey towards decarbonisation without having to bear all of the cost.”

Bedeo’s figures show that replacing an existing large diesel van with a new electric would cost the fleet manager an average of £55,000 per vehicle. This rises to £62,500 per vehicle, when the average amount spent (£7,500 according to the research) on each vehicle fit-out (refrigeration units, racking etc) is taken into account.

Even if a residual value of £15,000 for each vehicle sold on was taken into account (£47,500 x 150,000 = c£7.13bn), businesses would still be saving c50% of the total cost of ownership by converting rather than buying new.

Boyner also said that adding electric to an existing diesel van by way of an in-wheel motor and battery system would not only save significant money, but also overcome fleet managers’ current concerns regarding range, affordability and sustainability.

But government action is vital to accelerating awareness and demand for such a solution.

“Our research shows that more fleet managers (i.e., the remaining 80%) might be more inclined to consider a retrofit solution if there was greater awareness and that’s where government can play its part through incentives. More than half (54%) had little or even no knowledge of retrofitting, despite the huge benefits it can bring in helping businesses transition to an electric future and accelerate their decarbonisation strategies.”

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Natalie Middleton

Natalie has worked as a fleet journalist for over 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.