Industry Insights

Electric Vans vs Diesel Vans: Which is Best for Your Small Business?

For decades, diesel ruled the van market. But with new regulations and rising fuel costs, electric vans are quickly becoming the smarter choice.

The Van Dilemma

If you run a small business or work as a self-employed tradesman, your van isn’t just a vehicle — it’s the backbone of your operation. But the decision about what to drive has never been more complicated.

Diesel vans have been the go-to for decades, valued for their range, payload capacity, and familiarity. Electric vans, meanwhile, have moved from niche curiosity to genuine contender, offering lower running costs and freedom from certain charges.

So, how do you decide between the two? The answer depends on your daily workload, operating area, and long-term plans for your business.

Running Costs: Fuel vs Charging

Fuel prices in the UK remain unpredictable, with diesel consistently more expensive than petrol — and significantly more than charging an electric van.

Diesel running costs:

  • Average fuel spend for 15,000 miles/year: £3,000–£3,200

  • Price rises hit immediately at the pump

Electric van running costs:

  • Home charging on off-peak tariff: £700–£900/year

  • Mixed public/home charging: typically £1,000–£1,400/year

  • Predictable costs if you stick to a set charging schedule

For most small businesses, electric charging costs are 50–70% cheaper than diesel fuel.

Servicing and Maintenance

Diesel vans require more frequent and often more expensive servicing: oil changes, exhaust system repairs, DPF maintenance, clutch replacements.

Electric vans have fewer moving parts and benefit from:

  • No oil or filter changes

  • Less brake wear (thanks to regenerative braking)

  • No exhaust or gearbox maintenance

This can reduce annual servicing costs by 20–30%, adding up to hundreds in savings per year.

Upfront Purchase Price

Diesel vans generally cost less to buy outright, but the gap is shrinking as electric van production scales. The Plug-In Van Grant can knock up to £5,000 off an eligible EV, and competitive lease deals are becoming more common.

When you factor in fuel, servicing, and tax savings, many electric vans reach total cost parity with diesel within 3–5 years.

Range and Refuelling

Diesel:

  • 400–600 miles on a tank

  • Quick refuelling in minutes

  • Ideal for long-distance work without planned stops

Electric:

  • Typically 150–250 miles on a full charge

  • Rapid charging: 80% in 30–60 minutes

  • Ideal for local and regional routes, especially with overnight depot charging

If your work involves regional deliveries or urban jobs under 200 miles/day, range will rarely be an issue with an EV.

Tax and Zone Charges

Electric vans are exempt from:

  • Vehicle Excise Duty (road tax)

  • ULEZ and Clean Air Zone charges (£10–£12.50/day in some cities)

Diesel vans face increasing restrictions and charges in urban areas — costs that can quickly add up for businesses that work in multiple cities.

Payload and Capacity

Modern electric vans can match diesel payload capacities in many cases, though some models lose payload to heavier battery packs. For most tradesmen carrying tools, parts, or parcels, the difference is negligible — but if you consistently carry heavy bulk loads, check the spec sheet carefully before switching.

Environmental and Brand Benefits

Operating an electric van reduces your carbon footprint, which is increasingly important for winning contracts — especially with larger companies and public sector clients that prioritise sustainability in their supply chain.

A green fleet can also help with marketing to homeowners who want eco-conscious service providers.

Resale and Depreciation

Diesel van resale values are beginning to feel the pressure of low-emission zones and upcoming bans on new internal combustion engine sales. Electric vans, once seen as a depreciation risk, are holding their value better as demand for used EVs grows.

Which Should You Choose?

If you:

  • Drive long distances every day without easy access to charging

  • Carry heavy loads to remote sites

  • Need maximum range without downtime

…diesel may still make sense in the short term.

If you:

  • Work mainly in cities or regional areas

  • Want to reduce running costs and avoid ULEZ fees

  • Care about sustainability and future-proofing your fleet

…an electric van is likely the smarter long-term investment.

The Hybrid Approach for Small Fleets

Many small businesses are now running mixed fleets — keeping a diesel van for occasional long-haul jobs and using electric vans for daily local work. This approach lets you test EVs in your workflow without committing your entire fleet.

Conclusion: The Tipping Point Is Near

The economics of running a diesel van are shifting fast. With fuel prices, maintenance costs, and urban access charges rising, the case for electric is stronger than ever — particularly for tradesmen and small businesses whose routes and loads suit the technology.

If you’re still unsure, the most practical way to decide is to trial one in your daily routine. Book a 24-hour test drive and see how it compares to your current van, pound for pound and mile for mile.