Legacy automakers have been lagging in the electric vehicle race, especially when it comes to commercial electric vans. This has given other vehicle makers, such as China’s SAIC’s Maxus brand, an opportunity to gain a foothold in the market, particularly in Europe. Fleet customers are struggling to obtain enough electric vans from established brands like Ford, Peugeot, Renault, and Mercedes, leading them to look for alternatives. Tesla has been ahead of the game in the passenger car market, but legacy automakers have also faced supply chain challenges when it comes to commercial vans. This has created a gap for new players to emerge and take advantage of the increasing demand for electric vehicles.
In the UK, last-mile delivery start-up Packfleet has taken a zero-emission approach by exclusively using electric commercial vehicles to deliver packages for its corporate clients. Packfleet experienced significant growth in 2022, increasing its fleet tenfold, with most of its 53-vehicle fleet consisting of Maxus vans. The company aims to double its fleet this year, highlighting the growing trend towards sustainable last-mile delivery solutions.
Market share
As the shift to zero-emission vehicles continues, newer brands have a unique opportunity to grab a larger share of the market. While traditional automakers struggle to electrify their entire model line-ups, companies like Maxus are thriving. The SAIC-owned brand sold 18,000 mostly electric vehicles in Western Europe and Scandinavia last year, including buses and pickup trucks, and plans to expand further into central Europe. According to data by the International Council on Clean Transportation, Maxus had about 6% of Europe’s new ECV market in 2022, including the UK, selling nearly 5,000 ECVs, which is more than what Ford, Nissan, or Fiat sold. Furthermore, Maxus sales were up 28% compared to 2021. Other companies looking to gain market share in the electric van industry include Geely’s Farizon, which will begin delivering vans in Europe in 2024.
B-ON, which purchased the StreetScooter ECV brand from Deutsche Post unit DHL, is boosting production in Germany and the US, while US carmaker General Motors’ BrightDrop van brand is doing the same at its plant in Ontario, Canada. With more companies entering the electric van market, competition is heating up, but supply remains an issue for many.
Electric vans production
“There is no magic wand to fix this, we just need to get the manufacturers up to speed,” said Tim Albertsen, CEO of ALD, one of Europe’s largest vehicle-leasing firms. “For the next couple of years there will not be enough supply of ECVs.” The delay in the production of electric vans is not limited to any particular brand or region. Renault’s commercial vehicle marketing director John Cleworth stated that there is no difference in delays for conventional and electric vans at Renault. Steven Merkt, head of transportation solutions at major supplier TE Connectivity, explains that legacy automakers are prioritizing big-volume passenger models over vans amid a tight EV battery-material supply. For instance, he suggests that models like the Chevy Silverado, the Mercedes EQS, and the Ford F-150 Lightning are existential questions for these companies, while the vans are not.
However, companies like Maxus, Farizon, and BrightDrop have deep-pocketed backers, and they are scaling up their production capabilities to meet demand. BrightDrop CEO Travis Katz explained that scaling production is an “incredibly challenging and expensive process”, but with GM’s backing, the company is on track to hit an annual capacity target of 50,000 vehicles by 2025. Meanwhile, B-ON is raising $100m in working capital and expects to have an annual capacity of 60,000 ECVs within two to three years, split evenly between Europe and the US. Asda, a UK supermarket chain, is currently using mostly Maxus models for its fleet of eight ECVs, with the other being a Ford. Fleet manager Sean Clifton has an additional 50 Ford vans and 20 Maxus vehicles on order, but he will need even more soon as Asda electrifies its 1,300 delivery vans. Clifton wants electric Mercedes chassis-cab vans, but the automaker has delayed their release until 2024, despite initially announcing a 2022 launch date.
