ELECTRIC VAN MARKET Challenges and Opportunities

One of the major challenges faced by the global electric van market is the higher production costs of electric vehicles compared to conventional gasoline or diesel-powered vans. The battery packs that power electric vehicles are still very expensive to produce at scale due to the high costs of battery cells and other components. According to the European Commission's Directorate-General for Climate Action, electric van sales in Europe in 2021 were around 50% lower than forecasts even with purchase subsidies in many countries averaging US$ 8,500-10,000 per vehicle.

Market Opportunity - Growth of e-commerce sector boosting demand for last-mile delivery vehicles

The rapidly growing e-commerce sector is opening significant opportunities for the adoption of electric vehicles for last-mile deliveries. With online retail sales rising at a double-digit pace year-on-year in many countries, the demand for last-mile delivery vehicles to ship packages to customers' doorsteps is increasing exponentially. This rising volume of packages handled by logistics and delivery fleets is boosting market requirements for more fuel-efficient and environment-friendly transportation solutions. According to the International Energy Agency, the average production costs of an electric van was approximately US$ 10,000-12,000 higher than a diesel van in 2021.