Published

Light Commercial EV Market to Grow

The factor for EVs in the commercial market is economics, not coolness
#hybrid #economics

Share

Although the amount of attention given to things ranging from the Tesla Cybertruck to the Mustang Mach-E might make one think that the electric vehicle (EV) transformation of the auto industry is going to occur in the passenger-vehicle segment of the market, odds are it will be commercial vehicles.

This supposition is supported by a research study conducted by IDTechEX, “Electric Vans 2020-2030,” which assesses the probable uptake of electric light commercial vehicles (eLCVs) in China, North America, Europe, and the rest of the world over the next 10 years.

Arrival UPS van

Earlier this year UPS ordered 10,000 electric vans from UK-based EV developer Arrival. (Images: Arrival)

According to IDTechEX, “The light commercial vehicle market is uniquely positioned to rapidly transition to electric vehicles.”

The reason: Companies that buy light commercial vehicles base their buying decisions on total cost of ownership (TCO), not just purchase price.

While, as the report indicates, the sticker price for an eLCV is higher than a comparable diesel model, the operational costs for the eLCV are lower than the diesel.

In addition, the research firm anticipates:

  • Battery pack price decreases
  • Electric drivetrain efficiency improvements
  • Economies of scale improvements

All of which will benefit what is a still-developing segment.

Also, with the trend toward cities creating low emissions zones in their central business districts and charging fees based on the type of powertrain, the eLCV has an advantage over diesel.

Consequently, the IDTechEX forecast for eLCV vehicles shows a steady increase in number over the next 10 years.

The firm projects that today eLCVs represent about 2.6% of the share of total global LCV market revenue, a number that will reach 22.8% by 2030.

RELATED CONTENT

  • The U.S. Military Finds New Roads: Fuel Cell Powered Pickups

    While it seems that fuel efficiency as related to the U.S. federal government is all about light duty vehicles, that’s far from being the case.

  • Chevy Develops eCOPO Camaro: The Fast and the Electric

    The notion that electric vehicles were the sort of thing that well-meaning professors who wear tweed jackets with elbow patches drove in order to help save the environment was pretty much annihilated when Tesla added the Ludicrous+ mode to the Model S which propelled the vehicle from 0 to 60 mph in less than 3 seconds.

  • 48-volt Hits Production

    “In 2025, approximately one in five new vehicles across the world will be equipped with a 48-volt drive,” Juergen Wiesenberger, head of Hybrid Electric Vehicles at Continental North America said last week.

Gardner Business Media - Strategic Business Solutions