Growing appetite for electric vans despite the plug-in grant cut

Growing appetite for electric vans despite the plug-in grant cut

22 June 2021 | Kate Kozlowska | 6 min read

The government’s decision to cut the plug-in van grant will not slow progress towards electric vans

According to Shaun Sadlier, head of the Arval Mobility Observatory (AMO) research platform, the government's cuts on funding for plug-in vehicles will not stop the transition towards electric and hybrid vehicles. AMO surveyed as many as 300 UK LCV operators, and they are still very enthusiastic about the plug-in van market. The survey showed that UK LCV operators aren't worried about the plug-in grant cuts and intend to continue their plans to transition to electric vans in the coming years.

"The most eye-catching finding of the Arval Mobility Observatory Barometer this year concerns the appetite for and rate of adoption of electric vans. In three years, for all respondents, the penetration of electric light commercial vehicles on fleet is projected to be 37%," said Sadlier.

AMO serves small businesses of 10 to 99 employees, mid-market companies of 100 to 999 employees, large corporations with a workforce of 1,000 or more. Underpinning the broad scope of AMO's coverage focuses on the needs of specific market sectors that face particular challenges.

How much is the electric van grant in 2021?

The lowered maximum discount for 3.5-tonne vans is now £6,000 from £8,000. At the same time, they are reducing savings on smaller vehicles from £8,000 to £3,000. Electric vans up to 4.25 tonnes are still eligible for the 'small electric truck' grant, which offers a rebate of up to £16,000 (but no more than 20% of the purchase price).

Large fleets ahead of smaller ones

As new technologies mature and more businesses see the benefits of environmental friendliness, companies are turning to electric vehicles as a solution. While 17% of respondents expect to have a significant share of their fleet powered by electric powertrains by 2024, nearly half aims for a penetration of 20% or more by that time. The largest companies expect more than half of their fleets to be fully electric within three years, compared with 32% of the smallest businesses. Smaller companies are more interested in hybrid vehicles seeing them as a stepping stone to going fully electric.

“[A] striking point on responses to electrification is their consistency across all fleet sizes"

Shaun Sadlier noted that the most critical finding in this survey is that regardless of the fleet size and how quickly they go fully electric - there needs to be consistency. "While it appears that larger employers will lead the way to some extent, it would not be an exaggeration to say that the vast majority of all van fleets are planning to embrace electrification over the next few years, at a rate that can only be described as rapid."

The reasons behind going electric

Companies that are investing in electric vehicles have cited various reasons for doing so, including reduced fuel costs and being able to drive in low emission zones free of charge. Another benefit is that many companies now use EVs to show their environmental stewardship. Some even claim they make better advertising because they don't contribute to air pollution.

"Notably, fuel economy of electric over petrol or diesel is clearly seen by van operators as a major plus point," Sadlier said. "One-third of fleets already believe that total cost of ownership for electric vans is competitive with petrol and diesel equivalents. If the cost argument for adoption can be won at a managerial level, adoption is likely to happen much faster."

Is your business ready for an EV?

Electric vehicles have been around for a while now, but many UK business operators are still unfamiliar with them. Many are happy to embrace these green vehicles, while others are more sceptical about them. That's perfectly understandable.

We talked about leasing electric vans in our previous blogs: "Electric van guide - everything you need to know" and "Our Electric Vehicle guide for first-time buyers". Here, you will find all the information you require to decide if an electric van is right for your business. 

Many LCV drivers are also concerned about the initial cost of a zero-emissions vehicle. When you rent or lease an electric vehicle, there is no upfront cost. You don't need to worry about depreciation either. Some customers also choose a lease as their preferred option, paying only a small initial rental followed by equal monthly rentals for the duration of the agreement. They hand the vehicle back and choose a brand new one again. Many also opt for a maintained agreement, so they don't have to worry about any repairs or vehicle service and maintenance.

Our EV specialists are waiting for your enquiry and will be happy to help you switch to an electric van in no time and worry-free.


Contact us

Browse our electric van deals


Am I Eligible?

We work in partnership with many of the UK’s leading van leasing, car leasing, contract hire and finance leasing funding companies in order to provide the most competitive rates and offer you the best leasing deals possible. Our guide to eligibility will help you understand the various requirements for establishing a vehicle finance agreement.

Our Vehicle Ordering Process

Achieving the best van leasing deals and the best car leasing deals has become a key consideration in the work we do, so you can get the best leasing deals. Our process is built to ensure we accurately and efficiently identify your needs and requirements, achieve the best finance deal for you, apply for finance on your behalf and provide you with the quickest delivery possible.

Our First Class Service

At Commercial Vehicle Contracts, we ensure that every aspect of the car leasing process and van leasing process is seamlessly undertaken with full management on your behalf, meaning you can sit back and relax with the peace of mind that your chosen vehicle will arrive at your desired address matching your required needs.

All Our Latest Offers & News

Sign up for our mailing list to receive exclusive offers and be the first to know about our hottest leasing deals! Delivered straight to your inbox once a week.

Selected vehicles Select a vehicle to appear here Select a vehicle to appear here Select a vehicle to appear here Select a vehicle to appear here
Basic List Price
Monthly Rental
Engine and Drive Train
Transmission Type
Engine Size
Engine Configuration
Fuel Type
Fuel Delivery Type
Euro Emissions Standard
Electric Range
Combined (WLTP)
Fuel Consumption
Combined (WLTP)
Combined (NEDC)
Maximum Speed
0 to 60 mph
0 to 62 mph
Power (BHP)
Power (PS)
Power (KW)
Dimensions and Weights
Ground Clearance
Boot Capacity
Fuel Tank Size
Gross Weight
Kerb Weight
Max Braked Towing Weight
Max Unbraked Towing Weight
Body Style
Insurance Group
RFL Rate
Front Brakes
Rear Brakes
Standard Front Tyre Size
Standard Rear Tyre Size
Standard Spare Tyre Size