‘Do your homework’ on electric vans, LeasePlan urges fleets

Fleets need to “do their homework” before committing to electric vans or risk them impacting on their financial performance.

That’s the advice from Mark Lovett, LeasePlan head of commercial vehicles (global). “We are seeing an increase in interest in transitioning to electric vehicles with customers wanting more advice on guidance,” he said.

“Our message is: don’t think about how an electric LCV fits into your business model to replace a diesel; think how you need to re-engineer your business to work within an electric LCV powertrain. You may not be able to exactly replicate the same business model.”

Efficiency and utilisation are two key factors to consider, together with business structure, remuneration and reward, Lovett added.

“We will often recommend doing it in phases, which many fleets are relieved about – don’t do it all in one go.”

LeasePlan is at the cutting edge of a flood of new market entrants and is contacted by start-up manufacturers “almost on a weekly basis”, said Lovett.

“Our challenge is business is dependent on a vehicle to do a job and traditional manufacturers are a known quantity on reliability, dealer networks and contacts,” he explained.

“New entrants need to build that repair network, have replacement vehicles and offer the right warranty. It can also be hard for a leasing company to assess residual values on an unknown brand.”

Nevertheless, Lovett concedes it is an exciting time for leasing companies and fleet operators with the rapidly expanding range of options available as more manufacturers launch electric products in the UK.