Electric vs. ICE vs. Hybrid Vehicles: A Fleet Comparison

Vehicle technology is at the forefront of modern business innovation, particularly in the context of fleet management. A new global study, for example, revealed that the majority (58%) of fleet managers expect artificial intelligence and electric vehicles to have the biggest impact on fleet management in the coming years. 

While there are a number of factors that are impacting the adoption of technologies in fleet management, companies continue to strive to improve operational efficiency while meeting sustainability targets. Choosing the right vehicle technology—whether electric vehicles (EVs), hybrids, or internal combustion engine (ICE) vehicles—has become a pivotal decision. Each vehicle technology offers unique advantages and challenges that impact fleet costs, efficiency, environmental footprint, and overall performance.

Supply chain decarbonisation has become a crucial focus for businesses today.  According to The International Council on Clean Transportation (ICCT), for example, fleet operators are under increasing pressure to decarbonise due to regulations such as the European Commission’s limits on CO₂ emissions, which are currently set at 153g/km by 2025 and 90g/km by 2030 for vans, with some experts expecting this figure to increase over time. With mounting pressure to reduce carbon emissions and comply with increasingly stringent environmental regulations, the need for fleet managers and business owners to transition toward cleaner technologies has never been more urgent. This guide provides a comprehensive comparison of electric, hybrid, and ICE vehicles, examining the key factors that influence fleet management decisions. We will also highlight MAXUS UK’s innovative range of electric vans and their transformative role in sustainable fleet operations.

By the end of this guide, you will have a clearer understanding of the optimal vehicle technology for your business needs, as well as the benefits and considerations that come with each option.

Electric Vans

Electric vans are emerging as a dominant force in sustainable fleet management, offering a variety of advantages that appeal to businesses committed to reducing their carbon footprint . Research by Shell found that 95% of fleet managers see electric vehicles (EVs) as the long-term decarbonisation solution, and more than half (54%) expect EVs to make up 90% of their fleet by 2030. Powered entirely by electricity, these vehicles eliminate the reliance on fossil fuels, providing significant environmental benefits, cost savings, and operational efficiencies.

Recognising this shift, industry leader MAXUS have positioned themselves at the forefront of the drive towards electrification in the commercial vehicle sector. As WhatVan? notes, “MAXUS eDeliver 7 has positioned itself at the forefront of the drive towards electrification in the LCV sector…”

Environmental Benefits: A Zero-Emission Solution

One of the most compelling advantages of electric vans is their ability to operate with zero tailpipe emissions. As cities across the UK  implement stringent air quality standards, such as Clean Air Zones (CAZ) and Ultra Low Emission Zones (ULEZ), businesses are under increasing pressure to comply with environmental regulations. EVs help companies meet these regulations, contributing to cleaner air and a lower environmental impact.

Cost Efficiency: Lower Running Costs and Maintenance

Electric vans, such as the MAXUS eDELIVER 9, benefit from significantly lower operating costs compared to ICE vehicles. In fact, electricity is approximately 60% cheaper than petrol or diesel on a per-mile basis, which directly translates into savings for businesses.

Over a five-year period, the average cost to service an electric van is estimated at €600, while a diesel van costs around €5,000

Furthermore, the simplicity of electric drivetrains means there are fewer moving parts and less wear and tear, reducing the frequency and cost of maintenance. 

Source: https://ig.ft.com/electric-car/

Performance: Instant Torque and Smooth Operation

Electric motors are known for their ability to deliver instant torque, which provides a smoother, more responsive driving experience, particularly when carrying heavy payloads. Rising consumer preference continues to lead to the growth in this sector. In fact, the electric vehicle driveline market valuation is predicted to reach £22.5 billion by 2032, reported in a research analysis by Global Market Insights Inc.

Source: https://www.gminsights.com/

The MAXUS eDELIVER 9, for example, offers an impressive range of up to 323 miles on a single charge, making it ideal for both urban and regional deliveries. For businesses that require rugged performance, the MAXUS eTERRON 9  is designed to handle off-road conditions and high-demand environments, proving that EVs are not just suitable for city operations.

However, transitioning to electric vehicles requires planning, particularly around charging infrastructure. According to Fleet News, funding choices are often made because they present the best current option instead of what’s best for each individual fleet.

Businesses need to consider the installation of workplace charging stations and the availability of public charging networks to ensure that their fleet operates without disruptions. Fortunately, advances in fast-charging technology have made it easier to keep EVs on the road.

Investing in charging infrastructure is a significant consideration for businesses moving toward electric fleets. However, the increasing availability of rapid charging stations and the ability to install workplace chargers have helped reduce barriers. Companies with larger fleets can also benefit from integrating telematics systems like MAXUS Intelligence Onboard, which enables real-time performance monitoring and route optimisation. These systems ensure that vehicles are charged and ready for the next shift, reducing downtime and enhancing operational efficiency.

For example, a typical full charge for an electric van such as the eDELIVER 3, designed for shorter urban routes, costs just £10–£20 compared to the £100+ spent refueling an ICE van.

Hybrid Vans – Balancing Fuel Efficiency with Flexibility

Hybrid vehicles combine an internal combustion engine (ICE) with an electric motor, offering businesses the flexibility of both power sources. This dual-system approach makes hybrid vans attractive for businesses that are not yet ready to commit fully to EVs or are operating in areas with limited charging infrastructure.

Environmental Benefits: Reduced Emissions but Not Zero-Emission

Hybrid vehicles help to reduce CO2 emissions compared to traditional ICE vehicles by leveraging both electric and combustion power. However, they cannot match the zero-emission status of fully electric vans. While plug-in hybrid vehicles (PHEVs) can operate on electricity alone for shorter distances, they will still rely on petrol or diesel for longer trips, meaning they are not free of emissions. Some may argue that electric vehicle battery manufacturing also produces CO2 emissions, but studies show that CO2 emissions from ICE vehicles outweigh electric vehicles, even with battery manufacturing included in the calculation.

Nevertheless, hybrids are a significant improvement over traditional ICE vehicles, particularly for businesses that need more range flexibility and are not yet ready to install comprehensive charging infrastructure. Hybrids offer the ability to switch between electric and combustion modes, making them more adaptable to various operational requirements.

Maintenance and Operational Considerations

While hybrids offer the advantage of flexibility, they also present some operational challenges. The dual powertrain systems result in higher mechanical complexity, leading to increased maintenance costs compared to electric vans. Hybrid vehicles also require more regular servicing, including battery maintenance, engine servicing, and transmission repairs.

For example, while plug-in hybrid electric vehicles (PHEVs) can run purely on electric power for short distances, businesses will still need access to charging infrastructure to maximise the benefits of the hybrid system. Moreover, the extra weight of the combustion engine and battery system can impact payload capacity.

Businesses should evaluate their long-term goals and assess whether the hybrid option is a transitional step or a permanent solution, as it may not provide the same level of cost savings or emissions reduction as a fully electric vehicle.

Internal Combustion Engines

For many years, internal combustion engine (ICE) vehicles, powered by petrol or diesel, have been the mainstay of commercial fleets. They provide a range of benefits, including well-established refueling infrastructure, longer driving ranges, and the ability to handle heavy payloads. However, ICE vehicles are increasingly being challenged by rising fuel costs, stringent emissions regulations, and the shift toward cleaner technologies. 

Refuelling Infrastructure and Range

One of the key advantages of ICE vans is the widespread availability of refueling stations. Petrol and diesel stations are abundant, enabling fleet operators to easily refuel during long-distance journeys. In contrast, electric vehicles, while growing in popularity, still require more extensive charging infrastructure for long-haul operations.

ICE vehicles also boast a range advantage over many electric vehicles. This can be an important consideration for businesses that require frequent long-haul operations or those working in remote areas where charging infrastructure may be limited.

Regulatory Challenges

Governments around the world, including the UK, are ramping up their push for cleaner transport solutions. With the UK government’s commitment to phasing out petrol and diesel vehicles by 2030, businesses relying on ICE vans will face higher costs and operational challenges in the coming years. This Vehicle Checker can help determine if your vehicle qualifies for entry into a specific zone in the UK. Alternatively, you can reach out to your vehicle manufacturer to confirm this information.

Key Considerations for Selecting the Right Vehicle Technology

Cost Comparison – Initial Cost vs. Lifetime Savings

While electric vans typically have a higher upfront cost, their long-term savings in fuel, maintenance, and government incentives can make them a cost-effective option. For example, the Plug-in Van Grant (PIVG) can reduce the initial purchase price of an electric van by up to £5,000, helping to offset the higher initial investment.

In contrast, ICE vehicles generally have lower upfront costs but incur higher running costs, particularly as fuel prices rise. The total cost of ownership (TCO) should be a key consideration for businesses, taking into account not only the purchase price but also long-term operational expenses.

Range and Payload – Meeting Operational Needs

Range and payload capacity are critical factors for fleet operations. The MAXUS eDELIVER 9 provides a range of up to 323 miles on a single charge, making it suitable for most urban and regional deliveries. Additionally, EVs like the eDELIVER 3 offer competitive payload capacities, enabling them to handle various commercial tasks.

For long-distance travel or heavy-duty operations, ICE vehicles currently hold a range advantage. Hybrid vans provide a compromise, delivering moderate range and payload capabilities, but they lack the full zero-emission benefits of EVs. Businesses must assess their specific mileage and load requirements to determine the best fit.

Charging and Refuelling Infrastructure

Switching to EVs requires investment in charging infrastructure, but advances in technology, such as rapid chargers, have reduced charging times significantly. Businesses can also install workplace charging stations for overnight readiness.

While ICE and hybrid vehicles benefit from widespread refueling networks, their reliance on fossil fuels results in higher emissions and rising costs. Businesses operating in urban areas must weigh the benefits of adopting EVs to navigate emission-related restrictions effectively.

Number of public charge points in the UK

Source: https://www.zap-map.com/ev-stats/how-many-charging-points 

Government Incentives and Regulations

Governments in the UK and around the world are actively supporting the transition to greener technologies, offering various incentives to businesses adopting electric vehicles (EVs). In the UK, businesses can benefit from the Plug-in Van Grant (PIVG), which offers a £5,000 discount on the purchase of eligible electric vans. This grant helps offset the higher initial purchase price of EVs, making the transition more financially feasible.

In addition to purchase grants, there are significant tax incentives available for electric vehicle owners. Businesses can benefit from reduced road tax, and exemptions from congestion charges and Low Emission Zones (LEZ) fees. These savings compound over time, significantly reducing the total cost of ownership for EV fleets.

On the regulatory front, the UK government has made a bold commitment to phase out the sale of new petrol and diesel vehicles by 2030. This means businesses relying on ICE vehicles will need to act sooner rather than later to ensure they remain compliant with future regulations. As part of the UK’s Net Zero Strategy, businesses must prepare for stricter emissions standards, and transitioning to EVs is the most effective way to future-proof fleet operations. The penalties for continuing to use high-emission vehicles are set to rise, making the transition to cleaner alternatives not just a moral choice, but a financial necessity.

Factor	Electric Vehicles	Hybrid Vehicles	ICE Vehicles
Initial Cost	Higher upfront costs	Moderate	Lower upfront costs
Running Costs	Significantly lower	Moderate	High
Maintenance Costs	Minimal (fewer parts)	Higher (complex systems)	High (frequent servicing)
Incentives	Grants, tax breaks	Limited incentives	None

Comparing the Pros and Cons of Electric Vans vs. Diesel and Hybrid Alternatives

Environmental Impact – Why EVs Are the Greener Choice

Electric vans lead the pack in sustainability. With zero tailpipe emissions, EVs significantly reduce air pollution, contributing to healthier urban environments. This is particularly crucial as cities around the UK are tightening regulations to combat air quality issues caused by petrol and diesel vehicles. The MAXUS eDELIVER 9 is a prime example of a high-performance electric van that not only delivers an impressive 323-mile range but does so with zero emissions, helping businesses meet sustainability goals.

Hybrids, while an improvement over ICE vehicles, still rely on fossil fuels for longer journeys and thus continue to produce emissions. Their environmental impact is lower than traditional ICE vehicles, but they still cannot match the zero-emission capabilities of EVs. Diesel and petrol vehicles, on the other hand, contribute heavily to CO2 emissions, harmful particulate matter, and nitrogen oxides, all of which are subject to increasing restrictions in urban areas.

Source: https://www.gov.uk/government/statistics/transport-and-environment-statistics-2023/transport-and-environment-statistics-2023 

Maintenance and Running Costs – EVs Lead in Cost Efficiency

Electric vans are not only greener, but they also offer significant cost savings. The simpler design of electric drivetrains results in fewer moving parts compared to internal combustion engine (ICE) vehicles, which translates to lower maintenance costs. For example, the MAXUS eDELIVER 3 offers significant savings in running costs compared to its diesel counterparts. Charging an electric van typically costs between £10-£20 for a full charge, while a full tank of diesel can exceed £100 for the same distance, making EVs a far more cost-efficient option over the long term.

Hybrids, although offering some maintenance savings, are still more complex due to their dual powertrains—electric and internal combustion systems. This added complexity increases the frequency of maintenance checks and can lead to higher servicing costs. On the other hand, ICE vehicles remain the most expensive to maintain, with regular fuel costs, high repair bills, and the need for frequent mechanical servicing.

Downtime and Operational Efficiency – Addressing Range Anxiety

One of the primary concerns for businesses considering the transition to electric vans is range anxiety—the fear that the vehicle won’t have enough charge to complete the day’s tasks. However, recent advancements in EV battery technology have greatly alleviated this concern. With MAXUS vehicles, for instance, the eDELIVER 9 can cover up to 323 miles on a single charge, which is more than adequate for most regional operations.

Charging times are also improving. While ICE vehicles offer the advantage of quick refueling, the growing number of rapid chargers across the UK and Europe means that businesses can effectively integrate EVs into their fleet without significant disruptions.

Hybrid vehicles, by contrast, do not fully resolve range anxiety, as they still rely on their electric motors only for short distances. When the electric range is exhausted, they switch to fuel, which can create inefficiencies in operations, especially if charging infrastructure is not readily available.

Category	Electric Vehicles	Hybrid Vehicles	ICE Vehicles
Fuel/Energy Cost per Mile	£0.03–£0.05	£0.08–£0.15	£0.12–£0.20
Annual Maintenance Costs	£500–£1,200	£1,000–£1,800	£1,500–£2,500
Tax Benefits (BIK Rates)	High	Moderate	Minimal
CAZ/ULEZ Fees	£0	£6–£12/day	£12.50/day (varies)
Average Lifetime Savings	High	Moderate	Low

How Does Fleet Electrification Impact Business Operations?

Financial Benefits of EVs

Switching to electric vehicles offers substantial financial benefits, particularly in terms of long-term cost savings. Charging an electric van is typically much cheaper than refueling a petrol or diesel vehicle. This is a significant saving for businesses operating large fleets.

Additionally, electric vehicles have lower maintenance costs due to their simpler mechanics. EVs do not require oil changes, gearbox repairs, or the frequent engine servicing needed by ICE vehicles. Fewer repairs mean less downtime, helping businesses stay productive and reduce operational costs.

Tax incentives add further financial advantages. Businesses can also avoid increasing charges for entering Clean Air Zones (CAZ) and Ultra Low Emission Zones (ULEZ), which are being implemented in many UK cities to encourage the use of zero-emission vehicles.

Logistics and Efficiency Changes

Electrifying your fleet requires logistical adjustments to ensure smooth operations. Planning routes around available charging infrastructure becomes an essential part of operational efficiency. Companies can leverage telematics systems like the MAXUS Intelligence Onboard System, which offers real-time performance monitoring and route optimisation. These tools ensure that drivers can complete their routes efficiently while minimising energy use and downtime.

Additionally, electrification can improve brand reputation. Customers increasingly value businesses that demonstrate a commitment to sustainability. By adopting EVs, companies can showcase their environmental responsibility, gaining a competitive edge in markets where sustainability is a priority.

What Role Does Battery Technology Play in Choosing Between EV Options?

Battery Capacity and Range

Battery technology is a critical factor in the performance and suitability of EVs for different industries. Businesses with urban delivery routes may prioritize compact models like the MAXUS eDELIVER 3, which offers a range tailored to shorter trips. In contrast, companies requiring regional or intercity transport might choose the eDELIVER 9, which boasts a range of up to 323 miles on a single charge.

The balance between battery capacity and payload is essential. Larger batteries provide longer ranges but can reduce payload capacity. MAXUS vehicles are designed to optimise this balance, ensuring that businesses can achieve both efficiency and practicality.

Charging Speeds and Infrastructure

Charging infrastructure is another crucial consideration. Rapid charging solutions supported by MAXUS EVs enable batteries to reach 80% capacity in 30–45 minutes, making them suitable for businesses requiring quick turnarounds. Integrating workplace charging stations ensures that vehicles are ready for operations each morning, minimising disruption.

Planning charging infrastructure is an upfront investment, but it pays off in reduced downtime and enhanced fleet efficiency. Public charging networks, combined with smart charging schedules, further enhance operational flexibility. And as we have already seen the number of public charge points is growing fast. 

How SMEs Are Benefiting from Electric Vans: Real-World Case Studies

SME Adoption of EVs – Lessons from Trades and Construction

Small and medium enterprises (SMEs), particularly those in trades like electricians and plumbers, have found that adopting electric vehicles like the MAXUS eDELIVER 3 helps them save on operating costs while gaining an edge in urban areas, especially where Ultra Low Emission Zones (ULEZ) are in effect. SMEs can save on fuel and maintenance costs, enabling them to reinvest savings into growing their businesses while reducing their environmental impact.

For example, many electricians operating in cities with stringent emission controls have reported savings of up to £2,000 per year by switching to electric vans.

Aaron Cartey, Fleet Manager at G. Network, highlights the operational benefits of this transition:  “Every day, G. Network Field Engineers travel around the heart of London connecting homes and businesses to our 100% fibre network. It is our priority that we work safely and sustainably, so we are delighted to partner with MAXUS to bolster our fleet of electric vans.”

The energysavingtrust.org.uk case study shows Lift Shift and Store, a UK-based SME, transitioned to electric vans to enhance operational efficiency and environmental responsibility. Initially winning an LDV MAXUS EV80 electric van in 2019, the company expanded its electric fleet due to positive experiences. They now operate three electric vans: one LDV MAXUS EV80 and two MAXUS eDELIVER 3 models. This shift has led to significant savings in servicing and fuel costs, and the company avoids low emission fines in urban areas. The electric vans perform comparably to their diesel counterparts, debunking myths about EV inefficiency in commercial use.

Fleet Electrification in Logistics – Sustaining Efficiency

In the logistics sector, companies have found that switching to EVs like the eDELIVER 9 not only ensures compliance with emissions regulations but also enhances operational efficiency. Delivery firms leveraging telematics systems and rapid charging infrastructure report seamless integration of EVs into their schedules. Customers increasingly recognize these companies as leaders in sustainability, boosting loyalty and market share.

How to Choose the Best Technology for Your Business Fleet: Key Factors to Consider

Assessing Business Needs

Before making a decision, it’s essential to assess the specific needs of your business. Every fleet operates differently, so the right vehicle technology will depend on your unique operational requirements. Here are the key factors to consider:

• Daily Mileage and Range Requirements: One of the most critical considerations when selecting between electric and traditional vehicles is range. Electric vans like the MAXUS eDELIVER 9, with a range of up to 323 miles on a single charge, are ideal for businesses that operate over longer distances, such as regional or intercity logistics. For urban-based fleets, however, shorter-range EVs like the eDELIVER 3, which is designed for city deliveries, may be more practical due to their compact size and optimised range for frequent stop-start traffic.

• Businesses with longer, regional routes may want to prioritise EVs with longer battery ranges and rapid charging capabilities. Look for models that offer fast charge times, enabling quick turnaround between jobs. 

• Payload Capacity: Another important consideration is payload capacity. Some EVs, particularly smaller models, may offer excellent efficiency but come with limited load-carrying ability. For businesses in sectors like construction or logistics, where carrying large payloads is essential, vehicles like the eDELIVER 7  and eDELIVER 9 are designed to handle heavier loads without compromising range or performance.

• Operational Zones and Emissions Regulations: In many urban areas, Low Emission Zones (LEZ) and Ultra Low Emission Zones (ULEZ) are becoming more prevalent, with restrictions on petrol and diesel vehicles. Electric vans are zero-emission vehicles, ensuring businesses are in full compliance with local regulations, while also avoiding any associated penalties or charges. Consider your fleet’s operational zones and make sure to choose a vehicle that supports your needs while helping you stay compliant with evolving emissions laws.

Evaluating Costs and Incentives

Cost is always a significant factor when deciding between different vehicle technologies. While electric vehicles may require a higher upfront investment, they offer substantial long-term savings in operating costs. Here’s how businesses can evaluate the costs and financial incentives:

• Upfront Vehicle Costs: Electric vans typically have a higher initial purchase price compared to their petrol and diesel counterparts. However, this can be offset by the government incentives available to businesses making the transition to greener technology. For example, the Plug-in Van Grant (PIVG) provides significant savings on electric vans, covering a percentage of the vehicle’s purchase price (up to £7,500 for eligible vehicles).

Additionally, businesses can take advantage of capital allowances to accelerate tax relief on investments in new electric vehicles, allowing them to claim back a portion of the cost. Some businesses may also qualify for tax reductions.

• Operating and Running Costs: Once the vehicle is on the road, the operating costs are where EVs really shine. Fuel savings are particularly notable—charging an electric van typically costs between £10–£20 for a full charge, depending on the battery size and local electricity rates. In contrast, fueling a diesel van can cost upwards of £100 per tank, and fluctuating fuel prices can add unpredictability to operating expenses.

• Additionally, maintenance costs for EVs are much lower compared to internal combustion engine (ICE) vehicles. With fewer moving parts, no need for oil changes, and reduced wear and tear on braking systems due to regenerative braking, EVs incur fewer maintenance needs. Over time, this leads to lower service bills and fewer unplanned repairs, resulting in reduced downtime for your fleet.

• Government Incentives: Government incentives are a powerful way to reduce the financial burden of fleet electrification. In addition to the Plug-in Van Grant, businesses can benefit from tax breaks, such as lower vehicle excise duty (VED) for electric vehicles, and the Road Tax Exemption for EVs. Some regions also offer subsidies or grants for installing workplace charging stations, reducing the upfront cost of setting up the necessary infrastructure.

By evaluating the Total Cost of Ownership (TCO), businesses can see the long-term financial benefits of choosing EVs over diesel or hybrid alternatives. With lower fuelling and maintenance costs, combined with attractive government incentives, electric vans offer an overall more cost-effective solution.

The Importance of Test Drives

When considering a commercial electric vehicle, there’s no substitute for experiencing the vehicles firsthand. Test drives allow businesses big and small to evaluate the features, performance, and practicality of EVs. By getting behind the wheel, you can assess critical factors such as driving comfort, cargo space, range, and charging compatibility for your specific operational needs.

For business owners and  fleet managers, test drives offer an opportunity to simulate real-world conditions, such as payload handling and route efficiency, ensuring that the chosen vehicle meets the demands of day-to-day operations. Additionally, drivers can provide feedback on the driving experience, helping businesses choose EV fleets that balance functionality with employee satisfaction.

As more businesses look to achieve carbon neutrality and meet environmental regulations, the adoption of EVs presents an ideal solution. Hybrid vehicles serve as a viable transitional option, while ICE vehicles, though still relevant in specific contexts, are becoming increasingly expensive to operate and environmentally costly. By understanding the differences between electric, hybrid, and ICE vehicles, businesses can make more informed decisions, ensuring they are well-equipped for the future of fleet management.

Recognising the challenges and opportunities in this transition, MAXUS UK has set the benchmark for supporting businesses on their journey to electrification. As highlighted by Business Vans: “MAXUS have set the benchmark when it comes to supporting customers on their transition to an electric van. Every dealership in their network can provide customers with all the advice and support they need, making the transition as smooth as possible.”

MAXUS UK provides tailored support for businesses looking to transition to electric vehicles, offering test drives, expert advice, and a wide range of EVs suitable for all types of businesses. To experience the performance and benefits of MAXUS EVs, book a test drive or contact us today to learn how we can help electrify your fleet.