DUNTON, UK, December 12, 2024 – 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. 1
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.
“The European economy is built on small businesses, and their adoption of electric vans is a critical next step to electrifying Europe’s roads. Some small businesses have already made a successful start to that journey and Ford Pro is ensuring that we have the electric vans and services to support them,” said Hans Schep, general manager, Ford Pro, Europe.
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. 2 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.
“Once drivers come back, it’s easy for them to recharge the vans. Within ten seconds they’re out of the cab, at the charge point and plugging the van in. It couldn’t be simpler,” said Willy Le Gouellec, manager, France Alliance 56. “The software is easy to use for me, too – I can see each vehicle and how much range it has left. We’re seeing a major advantage.”
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.
Manuel González, president, Asociacion de Comerciantes Nuevo Rastro Madrid, explains. “The savings have been significant – around 50 per cent – but the benefits are more than fuel savings. Thanks to being electric, we can now operate without paying any fees. After seeing the advantages and ease of use, more and more members want to use the van.”
Marta González, manager, Cebada’s Market, adds, “Because we are in the centre of Madrid’s low-emission zone, we were worried about not being able to offer our customers an efficient home delivery service. This has been solved thanks to the E-Transit.”
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1 https://media.ford.com/content/dam/fordmedia/Europe/en/2024/05/cebr/2024_CebrReport_EU.pdf
May 2024 report by the Centre for Economics and Business Research estimating the economic activity in van-dependent industries across five national markets, plus the EU. Commissioned by H+K Strategies and Ford Motor Company.
3 Up to 317 km driving range based on full charge of E-Transit. Estimated range using Worldwide Harmonised Light Vehicle Test Procedure (WLTP). Figures shown are for comparability purposes and should only be compared with other vehicles tested to the same technical procedures. Actual range varies due to factors such as temperature, driving behaviour, route profile, vehicle maintenance, lithium-ion battery age and condition. The declared WLTP fuel/energy consumptions, CO2-emissions and electric range are determined according to the technical requirements and specifications of the European Regulations (EC) 715/2007 and (EU) 2017/1151 as last amended. The applied standard test procedures enable comparison between different vehicle types and different manufacturers.
Ford Motor Company (NYSE: F) is a global company based in Dearborn, Michigan, committed to helping build a better world, where every person is free to move and pursue their dreams. The company’s Ford+ plan for growth and value creation combines existing strengths, new capabilities and always-on relationships with customers to enrich experiences for customers and deepen their loyalty. Ford develops and delivers innovative, must-have Ford trucks, sport utility vehicles, commercial vans and cars and Lincoln luxury vehicles, along with connected services. The company does that through three customer-centered business segments: Ford Blue, engineering iconic gas-powered and hybrid vehicles; Ford Model e, inventing breakthrough electric vehicles along with embedded software that defines exceptional digital experiences for all customers; and Ford Pro, helping commercial customers transform and expand their businesses with vehicles and services tailored to their needs. Additionally, Ford provides financial services through Ford Motor Credit Company. Ford employs about 174,000 people worldwide. More information about the company and its products and services is available at corporate.ford.com.
