Commercial vans are emerging as a key growth area for electrification — and General Motors is developing a vehicle for the sector, according to a Reuters report.
Why it matters: GM's interest shows how a powerful legacy automaker wants in on what Morgan Stanley analysts called "America's hottest new vehicle" in a research note this week.
- "Delivery vans have highly predictable routes, conduct high-value services, operate a high utilization and generally stay within a specific geographic area … all of which fits well with EV infrastructure and charging ecosystems which enable their full economic use," they write.
The intrigue: The fledgeling battery-powered van market, like other EV segments, includes both startups and giant automakers.
- Amazon, in late 2019, vowed to buy 100,000 electric delivery vehicles from the startup Rivian and hopes to have 10,000 operating as soon as 2022.
- Ford announced in March that it's developing an electric version of its Ford Transit cargo van.
- UPS is planning to buy at least 10,000 electric vans from the U.K. startup Arrival.
