The transition to electric vans is continuing to gather pace across the UK, with new research suggesting that courier companies are leading the way while small businesses are steadily increasing adoption.
With manufacturers launching a growing range of electric commercial vehicles and charging infrastructure continuing to expand, businesses are increasingly evaluating whether now is the right time to electrify their fleets. While courier operators have emerged as early adopters, many SMEs are also beginning to recognise the long-term benefits of lower running costs, reduced emissions and improved sustainability credentials.
Recent surveys from fuel card provider Radius and temporary insurance specialist Tempcover highlight growing confidence in electric commercial vehicles, although many businesses continue to operate a mix of electric and diesel or petrol vans as they gradually expand their EV fleets. Together, the findings suggest that electric van adoption is moving beyond early adopters and becoming a mainstream consideration for businesses of all sizes as they plan future fleet investments.
Courier Fleets Lead Electric Van Adoption
Research from Radius found that 91% of courier fleets now operate at least one electric van. However, the majority have not fully transitioned, with 51% running mixed fleets that combine electric vehicles with traditional internal combustion engine (ICE) vans.
This reflects the operational reality facing many fleet operators. Electric vans are well suited to urban deliveries and predictable daily routes, while diesel vehicles often remain the preferred option for longer journeys, heavier payloads or areas where charging infrastructure is still developing.
Sustainability Remains the Biggest Driver
Reducing environmental impact continues to be the primary reason businesses are switching to electric vans.
According to the Radius survey:
- 54% said lowering their environmental footprint was a key motivation.
- 48% wanted to support wider corporate sustainability targets.
- 50% considered driving range and charging availability before making purchasing decisions.
- 48% highlighted vehicle purchase costs.
- 45% pointed to government grants and incentives.
- 33% were attracted by the prospect of reducing fuel costs.
While environmental benefits remain important, businesses are increasingly balancing sustainability with operational practicality and long-term running costs.
Mixed Fleets Becoming the New Normal
Rather than moving directly to fully electric operations, many organisations are adopting a phased approach.
Radius suggests businesses operating mixed fleets should carefully assign vehicles to routes best suited to their capabilities, ensuring electric vans are used where charging and range requirements align with daily operations.
Planning charging schedules effectively, reducing unnecessary downtime and using fleet management tools to monitor vehicle performance can also help businesses maximise efficiency during the transition.
Matt Kirby, Managing Director of Radius‘ EV division, said many courier operators are now settling into a long-term mixed fleet model rather than viewing it as a temporary stepping stone.
He explained that businesses able to manage charging efficiently, minimise delays and maintain tighter control over operating costs are likely to gain the greatest advantage as electrification continues.
Why Businesses Are Choosing Mixed Fleets
For many businesses, operating a mixed fleet has become the most practical route towards electrification. Rather than replacing every diesel or petrol van at once, companies are introducing electric vans where they make the most operational sense, such as urban deliveries, fixed daily routes or depot-based fleets.
This phased approach allows businesses to reduce emissions and lower running costs while maintaining the flexibility of traditional vans for longer journeys or specialist work. As electric van technology continues to improve, many organisations are expected to gradually increase the proportion of EVs within their fleets.
One in Three SMEs Already Using Electric Vans
Separate research from Tempcover found that 30% of UK SMEs and sole traders who depend on vans for their businesses have already introduced electric vehicles into their fleets.
Adoption is also expected to continue growing over the next few years:
- 27% intend to switch within the next 12 months.
- 31% are considering moving to electric vans within the next one to five years.
These figures suggest that while many businesses remain cautious, a significant proportion are actively planning their transition.
Another factor expected to accelerate electric van adoption is the UK’s Zero Emission Vehicle (ZEV) Mandate, which is encouraging manufacturers to bring a wider range of electric commercial vehicles to market. As more models become available with longer driving ranges, improved payload capacities and faster charging capabilities, businesses now have more choice than ever before. This increased competition is helping to address many of the concerns that have previously slowed EV adoption, including vehicle suitability and operational flexibility.
Range Anxiety Still Holds Businesses Back
Despite growing interest, several concerns continue to slow adoption among businesses that have yet to switch.
The biggest challenges identified include:
- 39% cited range anxiety.
- 29% were concerned about the upfront purchase price.
- 28% highlighted insufficient public charging infrastructure.
Operational suitability also remains a major factor.
More than half (55%) of businesses still believe current electric vans do not fully meet the demands of their day-to-day work, while 70% questioned whether they could reliably handle regular long-distance or high-mileage journeys.
Many Businesses Still Taking a “Wait and See” Approach
The research also found that many smaller businesses remain undecided about electrification.
Among businesses yet to adopt electric vans:
- 56% said they would be more likely to switch if competitors made the move first.
- 52% admitted they do not currently feel informed enough to make a confident decision.
- 63% believe future government policies and advances from vehicle manufacturers will naturally encourage them towards electric vehicles over time.
This suggests that while interest is increasing, many businesses are waiting for clearer financial, technological and infrastructure improvements before committing.
What This Means for Businesses
The latest research indicates that electric van adoption is becoming an increasingly mainstream fleet strategy. Rather than replacing every diesel van immediately, many businesses are introducing EVs gradually, allowing them to assess charging requirements, driver feedback and operational performance before expanding further.
For organisations with predictable daily mileage, depot-based charging and urban delivery routes, electric vans can offer lower running costs alongside reduced emissions. Businesses with more demanding long-distance operations may find that operating a mixed fleet remains the most practical solution for the foreseeable future.
Careful Planning Remains Essential
Claire Wills-McKissick, temporary business van insurance expert at Tempcover, said transitioning to electric vans requires careful consideration, particularly for smaller businesses where replacing a fleet represents a significant investment.
She noted that while many organisations have already begun integrating electric vehicles into their operations, others are taking time to evaluate whether the technology can meet their operational requirements before making substantial purchasing decisions.
Continue Your Electric Vehicle Journey
If you’re considering switching to an electric van or company car, there’s plenty more to learn. We’ve created a range of expert guides covering EV ownership, charging, battery technology and the latest developments in electric commercial vehicles.
You may also find these guides useful:
- Electric Van FAQs
- EV Battery Safety Improvements (2020–2026): How Modern EVs Became Safer
- EV Congestion Charge Exemption
- Government Confirms Special eVED Rules for Fleet, Leasing and Rental Companies Ahead of 2028 Rollout
- Plug-In Grant
- EV Fire Risk vs Petrol & Diesel (2026 Update): What the Data Really Shows
- Switching to an Electric Van
- What Happens If an Electric Vehicle Breaks Down?
- Automatic vs Electric Vehicles: How They Drive, Compare and Perform
- £650 Million Electric Car Grant Launches – Save Up to £3,750 on Your Next EV!
- HMRC Mileage Reimbursement: New Rates for Petrol, Diesel, LPG, and EVs
- UK Government Increases Funding for Home and Workplace EV Chargers
- New AER Tool Simplifies Two-Tier EV Mileage Reimbursement for Fleets
- EV Prices Fall Below Petrol Cars in UK Market First
- HMRC Challenges Ruling On Reduced VAT For Public EV Charging
- BVRLA Urges Government to Reconsider EV Road Pricing Plans
- Top 10 Electric Cars to Lease in 2026: The Best EVs for Private Drivers, Company Cars and Salary Sacrifice Schemes
Looking For Your Next Electric Vehicle?
At Commercial Vehicle Contracts, we offer competitive leasing deals on the latest electric vans and company vehicles from leading manufacturers, including Ford, Mercedes-Benz, Volkswagen, Renault, Vauxhall, Peugeot, Citroën, Nissan, Maxus and many more.
Whether you’re adding a single electric van to your business or transitioning an entire fleet, our experienced team can help you find the right vehicle and lease package to suit your requirements.
Continue reading our guide to Fleet Van Leasing: The Smart Way to Grow Your Business Fleet to discover how CVC supports businesses with vehicle sourcing, conversions, maintenance and ongoing fleet management.
If you’re still deciding whether business van leasing is the right option for your company, or you’d like to explore the advantages and disadvantages in more detail, take a look at our guide, “Should you buy or lease a van for your business?“ It explains the key differences between buying and leasing to help you choose the option that best suits your business needs.
Browse our latest Electric Vehicle Special Offers to compare the newest EV lease deals available for UK businesses.
Alternatively, call 01424 863 456 to speak with one of our leasing specialists and discuss your electric vehicle requirements.
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