Diesel or electric for your business: how to decide based on annual mileage and delivery areas

The question almost always comes up the same way: "I have a small business, I do deliveries, should I buy my old diesel van or go for an electric one?" And the honest answer is that it depends. But it depends on very specific and measurable things, not on hunches. Here we'll sort them out.

Why the decision is no longer obvious in 2024

Five years ago, the conversation ended quickly: diesel, period. Not today. Low Emission Zones have multiplied, the price of commercial diesel is no longer what it used to be, and lightweight electric vehicles have matured enough for a self-employed urban delivery driver to seriously consider them. That said, they're still not a cure-all for everyone.

The two key variables: kilometers per year and delivery zone

If I had to choose two numbers to decide, they would be these: how many kilometers the van travels per year and what percentage of those kilometers are within a city with a Low Emission Zone. The rest—brand, price, personal preferences—comes later.

Annual mileage threshold: where is the line

In practice, below 15.000 km/year , electric vehicles almost always make the difference if you primarily drive in the city. Between 15.000 and 25.000 km/year , it depends on the urban/interurban mix. Above 25.000-30.000 km/year with long journeys, diesel still has the best total cost of ownership (TCO), except in very specific cases with integrated fast charging along the route.

Zone typology: urban, peri-urban, interurban

• Pure urban (Last mile in Madrid, Barcelona, ​​Valencia, Seville): electric vehicles have their home advantage. Low Emission Zones, short stops, regenerative braking, minimal range required.
• periurban (industrial parks, metropolitan belts, mixed-use development): gray zone. Here, we need to crunch the numbers.
• Transport (routes of 200+ km daily, sustained highway traffic): diesel wins. Still.

The real cost: don't look at the purchase price, look at the TCO

The classic mistake is comparing the list price and drawing conclusions. An electric vehicle costs between 30% and 50% more upfront than its diesel equivalent. But the TCO—total cost of ownership over 5 years—completely changes the picture.

What goes into the TCO of a company van

Purchase price less subsidies (MOVES III is still alive with nuances), energy or fuel, maintenance, insurance, road tax, depreciation and —very important— opportunity cost of not being able to enter a Low Emission Zone.

Energy vs fuel: the calculation per kilometer

Roughly speaking: a light electric van consumes between 18 and 22 kWh/100 km in real-world urban driving. At €0,15/kWh charging from a station, that's about €3 per 100 km . An equivalent diesel vehicle costs around €8-9 per 100 km using commercial diesel. The difference, multiplied by 20.000 km, is €1.000-€1.200 per year. It's not negligible, but it doesn't entirely cover the purchase price difference.

Maintenance: where the electric company really has the advantage

Fewer moving parts, no oil changes, no clutch, brakes that last twice as long thanks to regenerative braking. Here, electric vehicles save between 30% and 40% compared to diesel over their lifespan.

ZBE: the factor that sometimes single-handedly decides the purchase

If your daily route enters the Madrid Central, Barcelona, ​​or similar Low Emission Zones, and your current van has a B sticker or worse, the decision is already yours. It's not about Total Cost of Ownership (TCO), it's about being able to work tomorrow.

Environmental labels and which van can enter where

Zero-emission vehicles have free access everywhere, without time restrictions in most cities. ECO vehicles have free access with some caveats. C-class vehicles (Euro 6 diesel) are starting to face time restrictions in some Low Emission Zones. B-class vehicles are getting increasingly restricted.

Electric models that are available for sale in Spain

Let's get down to business with what you can go and buy at a dealership today.

Renault Kangoo E-Tech — from €34.000

The benchmark in the small segment. With a WLTP range of around 285 km, optional 80 kW DC fast charging, and a cargo volume that remains the standard. For pure urban delivery with a warehouse charging base, it's hard to go wrong.

Peugeot e-Partner — from €33.500

Same platform as the ë-Berlingo, with a Peugeot touch. 275 km WLTP range, 100 kW of power, and cabin ergonomics that, in my opinion, are among the best in the segment. A good option for last-mile delivery fleets.

Citroën ë-Berlingo — from €33.000

The pragmatic sibling of the Stellantis family. Same specs as the e-Partner but with a slightly lower entry price. A perfect fit for self-employed drivers who prioritize cost per kilometer worked.

Ford Transit Custom — from €36.000 (diesel)

I've included the diesel version here intentionally, because it remains the benchmark for intensive intercity driving. The 2.0 EcoBlue engine delivers real-world fuel consumption of 7-8 l/100 km and boasts proven reliability. If you drive 40.000 km/year on the highway, this is the car for you, or one of its equivalent.

Mercedes-Benz eVito — from €47.000

A mid-size electric van with a WLTP range of 242 km in the standard battery version. Expensive at first glance, yes, but for premium urban deliveries or services that require a professional image and quiet operation, it makes sense. That said, the price remains questionable compared to its rivals.

Volkswagen ID. Buzz Cargo — from €55.000

The expensive option, but with the best balance of range and mixed use. 400 km of real-world WLTP range, MEB platform, and 170 kW fast charging. For companies with long suburban delivery routes and a focus on image, it's a worthwhile investment.

Fiat E-Ducato — from €58.000

The large electric van. It boasts the cargo volume of a serious van and a range of 235 km with its 79 kWh battery. For high-volume deliveries in large cities, it doesn't have much direct competition today.

Summary table and scoring

Final checklist: how to decide it yourself in 5 minutes

1. Add up your actual mileage from the last yearNot the estimated ones: the ones on the odometer.
2. Calculate the % in ZBE or expected ZBEIf it exceeds 40%, the electricity company gains a lot of ground.
3. Do you have a charging station? Without its own charger, the electric vehicle becomes much more complicated.
4. What is your usual longest route? If it exceeds 200 km without stopping, be careful with the real winter range.
5. Calculate the TCO over 5 years, not 1.The photo changes.

If you drive less than 20.000 km/year, make deliveries in the city, and can charge at a warehouse, electric wins. If you drive more than 30.000 km/year on the highway and your route is predictable but long, diesel is still the better choice. And if you're somewhere in between—which is where many people are—it's time to sit down with a calculator, not rely on intuition.

FAQ

At what point in the year does an electric van stop being worthwhile?
Above 30.000 km/year with predominantly long intercity journeys, diesel still has a better total cost of ownership (TCO). Below 20.000 km/year with mostly urban use, electric vehicles almost always win.

Can I enter Madrid Central with a Euro 6 diesel van?
Yes, it has a C label, but with increasing restrictions on specific times and areas. The regulatory trend points to more limitations year after year, so planning your replacement well in advance is the prudent course of action.

How much does it cost to charge an electric van per day for urban deliveries?
With a real-world consumption of 20 kWh/100 km and a daily mileage of 120 km, that's about 24 kWh per day. Charging at €0,15/kWh, that's €3,60 per day. Using public fast charging can triple that cost.

What subsidies are currently available for purchasing an electric company van?
The MOVES III Plan remains active, offering subsidies of up to €9.000 for electric commercial vehicles, in addition to scrappage incentives. Further tax deductions may apply depending on the autonomous community. It is advisable to check the exact status before placing an order.