Focus: Lack of electric vans opens door for Chinese, other EV makers

Ayvens SA

13/04/2023 07:00

By Nick Carey
       LONDON, April 13 (Reuters) - Legacy automakers got off
to a late start with their commercial electric vans, opening the
door for other electric commercial vehicle (ECV) makers to gain
a foothold, as the Maxus brand from China's SAIC Motor Corp
 600104.SS  has done in Europe.
    Fleet customers complain they simply cannot obtain enough
electric vans from the likes of Ford Motor Co  F.N , Stellantis
NV  STLAM.MI  brand Peugeot, Renault  RENA.PA  or Mercedes
 MBGn.DE , and so they are casting about for alternatives.
    The established automakers were slow to embrace electric
vehicles, allowing Tesla Inc  TSLA.O  to race ahead on passenger
cars. With commercial vans, however, they also have dealt with
supply-chain challenges.
    UK last-mile delivery startup Packfleet uses only ECVs to
deliver packages in London for large and small corporate
customers seeking a zero-emission experience for consumers. 
    Packfleet grew tenfold in 2022 and CEO Tristan Thomas said
most of the company's 53-vehicle fleet are Maxus vans. The
company aims to double its fleet this year. 
    When the company sought its first ECVs in late 2021, "we
basically got laughed out of town by most dealers," with most
legacy brand vans on a 12-month back order, he said.
    Recently Packfleet has been able to obtain more Peugeot,
Ford and Citroen ECVs, but has to move quickly to get them.
    "As soon as vans arrive dealers call us and we have to move
quickly," Thomas said. "If we don't, they're gone in days."
    As fleets shift to zero-emission vehicles, newer brands have
a chance to grab market share. Maxus has an advantage while
legacy automakers struggle to electrify entire model lineups.
    SAIC said it sold 18,000 mostly electric Maxus brand
vehicles in Western Europe and Scandinavia last year, including
buses and pickup trucks. "We plan to expand further into Central
Europe areas," it added.
    Electric van market data is scarce, but according to
statistics provided to Reuters by the International Council on
Clean Transportation, in 2022 Maxus had around 6% of Europe's
new ECV market, including the UK, selling nearly 5,000 ECVs.
That total is more than Ford, Nissan  7201.T  or Fiat, and up
28% versus 2021. 
    Others looking to gain share include Geely's  0175.HK  van
brand, Farizon, which will start delivering vans in Europe in
2024. 
    B-ON, which bought the StreetScooter ECV brand from Deutsche
Post  DPWGn.DE  unit DHL, is boosting production in Germany and
the United States, while U.S. automaker General Motors Co's
 GM.N  BrightDrop van brand is doing the same at its plant in
Ontario, Canada.
    "There is no magic wand to fix this, we just need to get the
manufacturers up to speed," said Tim Albertsen, CEO of ALD
 ALDA.PA , one of Europe's largest vehicle leasing firms. "For
the next couple of years there will not be enough supply of
ECVs."
    
    'EXISTENTIAL QUESTIONS'
    Seven of UK supermarket chain Asda's eight ECVs are Maxus
models, the other is a Ford. Fleet manager Sean Clifton has 50
additional Ford vans and 20 Maxus vans on order, but will need
more soon as Asda electrifies its 1,300 delivery vans. 
    Clifton wants electric Mercedes chassis cab vans, but he
said while those were initially slated for 2022, they will not
arrive until 2024. 
    A Mercedes-Benz spokesman said the automaker deliberately
focused on ECVs for package delivery first and the chassis cab
version will launch on time in 2024.
    A spokesman for Italian truck, van and bus maker Iveco Group
 IVG.MI  said it should produce several thousand of its new
eDAILY ECV model this year, adding that van production has been
hit by component shortages and high raw material costs.
    There is no difference in delays for conventional and
electric vans at Renault, said commercial vehicle marketing
director John Cleworth.
    Steven Merkt, head of transportation solutions at major
supplier TE Connectivity  TEL.N , said as well as being late
with ECV models, legacy automakers are prioritizing big-volume
passenger models over vans amid tight EV battery material
supply. 
    "The Chevy Silverado, the Mercedes EQS, the Ford F-150
Lightning, are existential questions for these companies, the
vans are not," Merkt says. "If Ford loses that (F-150 Lightning)
fight, Ford doesn't exist. That's the reality."
    Ford's UK head, Tim Slatter, said the carmaker had
underestimated demand for its E Transit and is racing to catch
up. Slatter said boosting EV production across an entire model
lineup is difficult, which is why, for instance, the carmaker
will discontinue its Ford Fiesta hatchback in Europe this year. 
    "It's a major challenge and you have to take some tough
decisions," Slatter said. "Otherwise you're just spread too
thin." 
    Last week Ford unveiled a new, smaller electric Courier van
aimed at winning business customers in Europe, and boxing out
startups. 
    Some electric startups such as Arrival  ARVL.O  or Canoo
 GOEV.O , which showed early promise, have burned through
mountains of cash and fallen behind. 
    But Maxus, Farizon and BrightDrop have deep-pocketed
backers.
    BrightDrop CEO Travis Katz said scaling production is an
"incredibly challenging and expensive process," but with GM's
backing the company is on track to hit an annual capacity target
of 50,000 vehicles by 2025.
    After buying StreetScooter, B-ON has retained DHL as an
anchor customer. Last year, B-ON produced around 2,500 ECVs and
is ramping up production in Germany via contract manufacturer
Neapco and in California with EV maker Karma Automotive. 
    The company is raising $100 million in working capital and
within two to three years B-ON expects annual capacity of 60,000
ECVs split evenly between Europe and the United States, said CEO
Stefan Krause.
    "This will be a supply-driven market for a very long time,"
Krause said. "There will be a lot of room for many competitors."

 (Reporting by Nick Carey in London
Additional reporting by Giulio Piovaccari in Milan, Gilles
Guillaume in Paris and Norihiko Shirouzu in Austin, Texas
Editing by Ben Klayman and Matthew Lewis)
 ((nick.carey@thomsonreuters.com; +44 7385 414 954;))