Nearly one third of UK SMEs and sole traders that rely on vans have already added electric vehicles to their fleets, according to new research from Tempcover, a temporary business van insurance company.
The survey of 500 UK sole traders and SMEs found that 30% have already adopted electric vans. A further 27% plan to make the switch within the next 12 months, while 31% are considering doing so over the following one to five years.
However, some businesses remain undecided. 9% have yet to decide whether to switch, 5% are considering the move without a defined timeframe, 4% are not currently considering electric vans, and a further 4% say they do not intend to adopt them.
Amongst businesses that have not yet transitioned, concerns about driving range remain the most commonly cited barrier, identified by 39% of respondents. High upfront purchase costs (29%) and limited charging infrastructure (28%) were also frequently highlighted.
The survey also found that 55% of respondents who have not switched believe current electric vans do not yet meet the needs of their business, while 70% have concerns about their suitability for regular high-mileage or long-distance work.
Businesses weigh practical and financial considerations
The findings suggest many SMEs are taking a cautious approach to fleet electrification.
More than half (56%) of businesses that have not yet adopted electric vans say they would be more likely to do so if competitors made the move first, whilst 52% do not feel sufficiently informed to make a decision.
Despite these reservations, 63% expect future government policy and changes in vehicle manufacturing to influence their fleet choices towards electric vehicles.
Claire Wills-McKissick, Temporary Business Van Insurance Expert at Tempcover, says, “The transition to electric vans is a process that requires careful planning. This is particularly significant for small businesses, where upgrading a fleet is often a major investment.
“The data shows that around a third have already integrated electric vehicles into their setups, whilst others are taking time to assess what works best for their day-to-day operations.
“Given the scale of the decision, it seems businesses are focused on ensuring cost, capability, and operational infrastructure are firmly in place before committing.”
For more from Tempcover, click here.