Small businesses in Europe could save €14,000 per van over three years by switching to electric vans. The difference primarily comes from the lower cost of charging compared with refuelling petrol and diesel vehicles, and reduced maintenance costs that together offer significant savings in five major van markets.
These are key findings from a report commissioned by Ford Pro: The Economics of Commercial Van Usage Across Europe 2024, published by the Centre for Economics and Business Research (CEBR) that was based on a survey of 1,000 businesses in Europe.
According to the study, electric vans more than pay for themselves within three years – a common finance plan length – through lower running costs. This lower total cost of operation stands to benefit small businesses as they begin to recognise the advantages of electric vans and follow in the footsteps of better-resourced large fleets by adopting electrified vehicles.
From the moment a small business first considers electrification, Ford Pro supports the transition to make it as easy as possible. The E-Switch Assist tool helps customers to quickly judge, based on vehicle workload, which vehicles in their current fleet are most suitable to be replaced with an electric model. Since E-Switch Assist launched, Ford Pro customers in Europe have run 50,000 of their existing vehicles through the software to assess the best opportunities to electrify their fleets.
Subsequently, Electric vans offer multiple opportunities for small businesses to minimise costs from the moment they drive off the forecourt, notably through the reduced cost of charging compared with refuelling petrol and diesel vehicles. With Ford Pro Charging software, customers can also schedule charging during off-peak hours to further reduce their energy spend.
Electric vans are also mechanically simpler than diesel vehicles, which reduces the need for maintenance. Ford Pro estimates that service maintenance and repair cost is 40 per cent lower for E-Transit than for equivalent diesel-powered models.
Overall, small businesses comprise 99 per cent of firms in the EU. According to the CEBR electrification report, firms in France stand to benefit the most, where going electric could save up to €19,000 per van. This saving comes from factors including a comparatively low price difference for electric- and fuel-powered vans once governments grants are added, as well as lower depreciation for electric vans. This saving is also supported by France showing a relatively large divergence between electricity and fuel prices, which increases the potential to save money with an electric van by recharging cheaply.
Firms in Spain can save up to €16,000, up to €14,000 in the UK, up to €12,000 in Italy, and up to €11,000 in Germany. Across the five markets, the average saving is €14,000. Further savings may also be accrued from exemption from payments required after entering the increasing number of low-emission zones.
Real-world benefits
Among the many small businesses already benefitting from cost-effective electrification with Ford Pro is delivery company France Alliance 56. When the firm first began delivering parcels in the Morbihan region of France, it relied on diesel-powered vans. Today, the business operates E-Transit vans 3 supported by Ford Pro Charging solutions.
Switching to electric vans has cut energy costs by over 80 per cent, with expenses dropping to just €3 per 100 km compared to €18-€20 cost for diesel-powered vans. According to France Alliance 56, this significant saving has also been very simple to achieve.
Small businesses in urban locations can further benefit from electric vans through access to Europe’s low-emission zones, which now number over 350 and cover over 80 million people, including every capital city in the EU.
One example can be found in El Rastro, the oldest commercial area in Madrid, located in a low emissions zone. Traders’ association, the Asociacion de Comerciantes Nuevo Rastro Madrid, and the Cebada’s Market, also located in this area, now have access to a shared Ford E-Transit van that replaces previously used vehicles, including diesel vans. The van share is part of Rastro Electricity by Ford, a Ford Pro pilot project in collaboration with Madrid City Council, which is helping traders see both cost savings and further benefits.
