The Ford E-Transit Courier has a powerful 100-kilowatt (134 hp) motor, the automaker said.

Ford unveiled a new Courier battery-electric van aimed at winning business customers in Europe, and boxing out electric van startups such as Arrival.

The E-Transit Courier is part of a revamped lineup of small commercial vans for the European market that will also include gasoline and diesel models, Ford said in a statement.

The new Courier vans are 25 percent larger than the current model, and will carry heavier loads, Ford Pro chief Ted Cannis said in an interview.

The electric Courier will respond to European commercial customers who operate in cities, such as Paris, where officials have mapped out plans to ban combustion vehicles from city centers, Cannis said.

However, Cannis said, European countries are not shifting to electric vehicles at the same pace.

“Country by country, it’s dramatically different,” he said. Gasoline Couriers will stay in the lineup, with new models launching this summer.

“You have to mix and match all options market by market,” Cannis said. “Which is what makes it so different for new players.”

The E-Transit Courier will enter production next year. It will be built at Ford’s Craiova plant in Romania alongside the Puma small crossover. Ford is expected to launch an all-electric version of the Puma next year.

Diesel and gasoline engine models can be ordered from this summer for delivery before year-end, Ford said.

The all-electric powertrain includes a powerful 100-kilowatt (134 hp) motor, the automaker said.

Ford said its full performance and range details will be confirmed closer to launch.Ford aims new electric van at European cities and startupsThe E-Transit Courier will make its public debut at the Commercial Vehicle Show in Birmingham, UK, from April 18-20.

The van  is part of Ford’s shift to selling only full-electric vehicles in Europe. It will join the midsize E-Transit Custom and full-size E-Transit that are already on sale.

Next year, Ford will start deliveries of the Explorer compact electric SUV for Europe.

U.S. tax credits

Separately, Cannis said Ford expects many U.S. commercial fleet customers will receive $7,500 tax credits if they buy electric Transit vans. New U.S. government rules will cut the tax credit for retail buyers of electric Transit vans to $3,750 as of April 18, Ford said on Wednesday.

Ford is collaborating with accounting firm Ernst & Young to advise U.S. commercial customers on whether they will qualify for $7,500 tax credits under the Inflation Reduction Act.

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