Report: e-LCVs 25% more economical
Battery-electric vans (e-LCVs) are 25% cheaper than diesel equivalents, research by Transport & Environment (T&E) shows. Even excluding government subsidies, e-LCVs still have a better TCO in most cases. That seems to settle the debate about the cost-efficiency of e-LCVs.
For its research, T&E calculated the total cost of ownership (TCO) of electric vans and diesel vans for six groups of end-users in Germany, France, Poland, Italy, Spain and the UK. These countries represent 76% of the EU+UK van market.
The results revealed that battery-electric vans are 25% cheaper than their diesel equivalents.
- Overall, average TCO/km is €0.15 for e-LCVs and €0.20 for diesel equivalents.
- For light vans, average TCO/km was €0.12 for e-LCVs and €0.16 for diesel vans.
- For heavy vans, average TCO/km for e-LCVs and diesel vans was €0.18 and €0.24, respectively.
The striking fact is that even excluding government subsidies from the calculation, e-LCVs still have a lower TCO in five out of the six countries. The exception is Germany, where – if subsidies are excluded – the average TCO/km for e-LCVs and diesel vans is equal.
T&E’s research also states that e-LCVs will be cheaper to operate in all countries and user groups mentioned by 2024 at the latest.
In a separate survey, Dataforce demonstrated that 36% of van fleets in Europe have at least one EV in their fleet, while 32% consider buying an e-LCV this year. Additionally, 16% of the 745 fleets surveyed plan to buy an e-LCV in the next five years.
These forecasts reflect only a small portion of the electrification process in the EU. According to J.P Morgan, EVs and hybrid EVs will represent 30% of all vehicle sales, while the market share of internal combustion engine vehicles (ICEs) will drop to 40% by 2030.
For now, T&E says sales of e-LCVs only account for 3% of overall LCV sales, while battery-electric vehicles (BEVs) reached 9% of car sales.
T&E, which has a 30-year track record in supporting the transition to green energies, believes stricter targets and higher incentives for electrification will help us achieve sustainability much sooner.
Here are some of its suggested targets:
- Increase the target for CO2 reduction by 2025 from 15% to 25%.
- Set an additional intermediate target of 45% by 2027.
- Raise the 2030 target from 50% to 80%.
- Safeguard the target of achieving 100% emission reduction by 2035.
Should these targets be adopted, they could lead to substantial gains – both economically and ecologically – T&E argues:
- 1 million additional e-LCVs on EU roads by 2027.
- 14 million fewer oil barrels consumed in 2027.
- 10 MtCO2 emitted less between 2025 and 2027.
- 6 MtCO2 emitted less in 2027, representing more than the emissions of all Spanish vans in 2019.
Setting stronger European policies and putting an additional 1 million extra e-LCVs on roads in the coming five years would reduce CO2 emissions by 5.6 megatons, according to T&E. Reducing oil consumption would also end the dependence on Russian oil and help European businesses save €13.1 billion between 2025-2030, T&E concludes.
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