5:37 am, May 4, 2024
Electric vans could be the next big money spinner for franchise holders.
That’s thanks to huge improvements in range, continued grant support and substantial price reductions, which have opened the market up to owner-operators and small-to-medium enterprise users who run individual vans or micro-fleets.
In April 2024, Stellantis’s recently formed Pro One operation launched 12 new vans across the Citroen, Peugeot, Vauxhall, Opel and Fiat brands, with new electric models in three different body sizes.
The move comes after the company announced that light commercial vehicles contributed to more than a third of its global revenue in 2023.
In each case, the new vans now all have a range of over 200 miles, while prices have been slashed across the plug-in line-up.
The new Citroen e-Berlingo, Peugeot e-Partner, Vauxhall Combo Electric and Fiat e-Doblo are now all available for around £26,000 after the government’s plug-in van grant (PiVG), which continues to offer a payment of £2,500 towards a new electric LCV.
The continued rise in popularity of electric vehicles, a greater move towards leasing and a fall-off in aftersales income are all elements that are affecting dealership revenue streams in the current automotive retail environment.
But while EVs have a substantial negative impact on aftersales, there are some great opportunities to be had through selling higher-value EVs such as vans to customers who also benefit from them.
Small electric vans have always had a good following, but it’s the evolution of larger models that will make the biggest impact and deliver the biggest returns.
For example, the new Vauxhall Movano Electric – the company’s largest panel van with a 3.5-tonne gross vehicle weight – is now offered from £46,135 after the PiVG.
That may sound quite steep, but it’s a whopping £12,350 less expensive than the outgoing model, yet with a new 11kWh battery it has a WLTP-rated range of 261 miles – almost double that of its more expensive predecessor.
Speaking at the launch event, Brad Miller, head of LCV product & pricing for Stellantis Pro One UK, said: ‘Electrification is core to our brand strategy and we’re moving towards an electric majority as the infrastructure gets better. That tipping point isn’t far away.
‘Things are improving very quickly. Electric vans are getting better. Vauxhall will soon be an electric-only brand, and that means we need to make vans that appeal to all our customers.
‘It’s the biggest change in our industry for years and we’re adapting quickly.’
Later in 2024, a new plug-in version of the market-leading Ford Transit Custom is also due to arrive with a 236-mile range. The Transit Custom was not only the UK’s best-selling van last year, but also the UK’s best-selling vehicle overall.
Among the models in the E-Transit Custom line-up will be a 286hp MS-RT model, which will be the most powerful Transit yet and uses M-Sport-designed rally-inspired features – proof, were it needed, that van makers are no longer just focusing on large fleets with their new electric models.
Volkswagen has also announced a sporty GTX version of its ID.Buzz EV, which again is targeted at retail instead of fleet customers, while a plug-in version of the Isuzu D-Max pick-up is expected in 2025 – again, a vehicle aimed at smaller enterprise and single-vehicle users more than large fleets.
This feature appears in the current edition of Car Dealer – issue 194 – along with news, views, reviews and much more! Click here to read and download it for FREE!
