The paper examines the economic factors which have led during recent years to a spectacular increase—in the United Kingdom more than elsewhere—in the number of electric battery road vehicles.It is shown that the cost of operation, which is examined in detail, has moved in favour of the electric vehicle as a result of the longer battery life and the greatly increased cost of labour and petrol.In view of the long life of battery vehicles, a slightly higher first cost for a model of high efficiency giving the best possible performance is economic over a long period, and a formula to compare and evaluate the performance of different models is explained in some detail. The choice of batteries for these vehicles is also discussed.The potential market for this special form of delivery transport is investigated in the light of the limitations of range and flexibility, and it is shown that, while these limitations exist, the mass-production methods of petrol vehicles can never be applicable to battery vehicles. It is suggested that a steady and increasing demand for new vehicles and replacements will call for a limited number of small efficient manufacturers able to give personal service and continuity.