According to Arval, one of the largest leasing and mobility solutions companies in Europe, fleet managers need to use different parameters to assess the business case for the introduction of electric light commercial vehicles (e-LCVs) versus the transition to electric company cars.
Where the main considerations for cars are Total Cost of Ownership (TCO), Corporate Social Responsibility (CSR) and employee satisfaction; those axes are changing to TCO, CSR and productivity for electric vans, said Shams-Dine El Mouden, International Arval Consulting Director (pictured below).
As essential tools, e-LCVs must be able to support business operations without interruption, which makes the transition to battery operation more complicated.
“Other parameters flow into your strategy, such as your operating model, why vehicles are used, where they are driven – is it city, country or motorway? – where to park, whether single drivers or several drivers, whether one, two or three shifts are on duty during the day and even whether the vehicle is used at night, ”says Shams-Dine El Mouden.
No operational compromises
As a first step, he advised fleet managers to identify vehicles that could switch from diesel to battery operation without affecting their operational functions, and to select electric models that meet current operational requirements in terms of charging capacity, payload and range between charges.
Arval’s UK consultancy team tested e-LCVs to measure the gap between their official WLTP-tested range and their real-world performance in cold temperatures with three different loads; empty, half loaded and fully loaded. The results showed that a full load reduced range by around 15%, while UK winter temperatures can reduce WLTP range by 40-50%.
This means that if a vehicle manufacturer states an official range of 300 km between charging processes, a fleet manager should expect the vehicle to reach between 150 and 180 km when fully loaded in a cold climate.
“For fleet managers with vehicles based in Spain, Portugal, Italy or France, the WLTP value of 60% is very conservative and they could pursue their strategy with more optimistic range values,” said Shams-Dine El Mouden.
He added that even in Northern Europe, e-LCVs can meet the needs of most fleets for most journeys, despite the reduction in range due to the cold and loading.
Charging strategy
Range is less of a concern when e-LCVs can start up every day with fully charged batteries. Therefore, planning a charging strategy is essential for the successful implementation of an electrification program. The simplest solution is for drivers to bring their vans back to the company parking lot or depot at the end of their working day so that the e-LCVs can be connected, although this may not always be possible. As a result, some employers pay to have drivers install a charging station at home when they have off-street parking.
“One of the biggest challenges for fleets is designing the infrastructure in the office or implementing a solution for charging at home, including the cost of installing it and collecting data on power consumption,” explains Shams-Dine Al Mouden.
Ultra-fast charging on the go can be a solution for company car drivers who can make calls, check emails and work while their car is plugged into e-LCV drivers during the work day. This loss of productivity has to be taken into account in the electrification business case, although there may be ways for e-LCV drivers to plug their vans in for charging during their lunch break or while their vehicles are parked with customers.
Total property cost
The good news is that the total cost of ownership of e-LCVs, at least in the small car segment, is comparable to their diesel equivalents, Shams-Dine Al Mouden said. This is not necessarily the case with larger vans (3.5 tons) due to the significantly higher purchase price, although cheaper fuel, lower service bills and shorter maintenance downtimes can help offset the higher leasing price and support CSR goals.
“With e-LCVs, we are at a stage where cars were three to five years ago, with a limited selection of vehicles and infrastructure that does not necessarily have to be where it is needed for mass use. We are at the beginning of the journey for e-LCVs and there is enormous potential for adoption, ”said Shams-Dine El Mouden.
Images: Shutterstock and Arval
