EXPERT PANEL DECARBONISING

Commercial Vehicles

The stop-sales date for new diesel vans and trucks is looming, which poses challenges for those operating commercial vehicles. Our expert panel highlights the issues and share some solutions and advice for fleet operators looking to decarbonise

Paul Wright, sales director (contract hire, leasing & rental), Asset Alliance Group

Paul Wright heads up contract hire and leasing division for commercial vehicles at Asset Alliance Group. During his career in the commercial vehicle sector, he has helped support a wide range of business from SMEs to blue chip companies covering various sectors.

Simon West-Oliver, director of sales, AssetWorks

Simon West-Oliver has over 30 years of experience in the fleet industry. Simon’s wealth of experience supports fleets in managing their assets by providing sustainable change with decarbonisation planning, digitalisation in workshops, embracing a circular economy and managing environmental and social compliance.

David Haynes, corporate & international LCV business development manager, Athlon UK

David has been a part of the Athlon family for over a year, as a business development manager specialising in LCV. David prides himself on being at the forefront of mobility solutions and works hard to prioritise customer needs in every way possible. As well as looking after corporate and international customers, David brings a wealth of experience across salary sacrifice and has been working hard to bring Athlon SalaryExchange to life since the product was launched earlier this year.

The government plans to stop the sale of new diesel vans by 2030, and trucks by 2035 (up to 26 tonnes) and 2040 for over 26 tonne trucks. However, given the size, weight and operation requirements of heavier vehicles, and a zero-emission truck market that’s in its infancy, there are significant barriers to overcome for commercial vehicle operators. One of the biggest hurdles is the high upfront cost of electric and alternativelyfuelled vehicles. Paul Wright, who heads up the contract hire and leasing division for commercial vehicles at Asset Alliance Group, explains: “Transitioning to nondiesel vehicles may involve higher upfront costs due to the price difference between diesel and alternative fuel vehicles. Fleet operators will therefore need to assess their budgets and financial feasibility of acquiring new vehicles within the given timeframe.

“The range of vehicles can also be a potential barrier, especially at this early stage. Operators will need to carefully evaluate the range and capabilities of alternative fuel vehicles to ensure they can meet their operational requirements.”

With regards to heavy-goods vehicles in particular, Paul points out that the public charging infrastructure is currently a problem. He explains: “At the moment, public charging infrastructure for HGVs is limited, which impacts the ability of operators to charge their vehicles during long-haul journeys or at specific locations. The government and industry stakeholders will need to invest in the expansion of charging infrastructure to support the widespread adoption of electric or hydrogen-powered HGVs.” Managing a mixed fleet of diesel and alternative fuel vehicles may also present challenges in terms of maintenance and servicing. To tackle this, Paul advises operators to develop appropriate fleet management strategies to address the unique requirements of different vehicle types and ensure optimal performance.”

Despite the challenges, transitioning to a greener fleet is possible, but it does require careful planning. Paul explains: “Switching from diesel to alternative fuel vehicles may require adjustments in operational practices and additional training for drivers. Operators may experience some downtime during the transition period, as vehicles are replaced or retrofitted with new technologies. Logistics planning will therefore be crucial to ensure a smooth transition and minimise disruptions to operations.”

The resale value of diesel vehicles is another point to consider. Paul explains:

“With the ban on new diesel vehicle sales, the resale value of existing diesel vans and trucks may decline over time. Operators will need to consider the impact on their fleet’s residual value and potentially explore options for selling or repurposing diesel vehicles before the deadlines.”

Financial incentives

With regards to light commercial vehicles (LCVs), David Haynes, corporate & international LCV business development manager at Athlon UK, suggests that the lack of financial benefits could be hampering electric van take up. He says: “In the UK, the main driver for electric car uptake has historically been tax reduction, specifically BIK. This is not to say other elements such as CSR and carbon reduction have not also been factors in the decision making process. But with LCVs, it isn’t as clear cut. The main driver for electric-LCV up take is legislation, and this presents different challenges to those faced by car fleet drivers/managers as there isn’t a specific economical driver helping early adoption.”

There are also charging considerations to bear in mind, such as whether the driver is expected to charge at home, as well as how they will be reimbursed. Plus buying or leasing electric products can be more expensive than comparable ICE product so the initial outlay can make the cost benefit for the customer more complex too, despite potential running cost benefits.

David Haynes comments: “The reality for LCVs at the moment is that even though more makes and models are becoming available, there are still too few BEV commercial vehicles that can achieve long distances on a single charge whilst carrying a full load, as well as long lead times for delivery. This means that fleet managers will need a greater focus on route planning and fleet management to factor in charging and downtime within journeys. Organisations will need to better understand their charging requirements, as current on-premise charging facilities may not be adequate to keep a whole fleet running.”

To help with all this, David Haynes says: “Athlon UK have been working with EV specialists, Diode Energy to launch our EVReadyTool which provides insights and support throughout as our customers transition their fleets and company car schemes to EV.”

A challenging timeline

Sharing these thoughts on the challenges caused by high costs, vehicle ranges and charging infrastructure, Simon WestOliver, director of sales at AssetWorks commented: “Electric or hydrogen-powered vehicles often have higher upfront costs compared to diesel counterparts, and operators will need to carefully assess their financial feasibility and consider potential financial incentives or grants.

“Another challenge is the range of alternative fuel vehicles. Commercial operators rely on vehicles with sufficient range to cover long distances, and the current range limitations of some electric or hydrogen-powered trucks may require careful route planning and consideration of charging or refuelling infrastructure along the way. Adequate range and payload capacity are critical factors for ensuring the operational viability of alternative fuel vehicles in commercial settings.”

Furthermore, the availability of public charging infrastructure for heavy goods vehicles (HGVs) is crucial, believes Simon. He comments: “Commercial operators will need a robust network of charging or refuelling stations that can accommodate the specific needs of HGVs, including high-power charging capabilities. The development and expansion of this infrastructure will require collaboration between the government, charging service providers, and commercial vehicle operators.

“Overall, the government’s timeline for phasing out diesel vehicles poses challenges for commercial vehicle operators as highlighted above. Proactive planning, investment, and collaboration among stakeholders will therefore be crucial to address these challenges and ensure a successful transition to a greener commercial vehicle fleet.”

Preparing for the future

Despite the challenges, there are steps that commercial vehicle operators can take to prepare for a diesel-free future.

Paul Wright from Asset Alliance advises that as a first step, fleets should evaluate their duty cycles and operational requirements to understand the specific needs of the fleet.

“Do this by identify the routes, distances, and usage patterns to determine the optimal range and charging infrastructure requirements for alternative fuel vehicles,” says Paul.

Doing your research is also important. Paul explains: “Explore different alternative fuel technologies, such as electric, hydrogen, or biofuels to determine the most suitable option for your fleet. Assess the availability, performance, and range capabilities of alternative fuel vehicles to ensure they align with your operational requirements.

“And in terms of financing the move, keep track of government grants, incentives, and funding programs that support the adoption E