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Parcel giant UPS is planning to add to the six Modec electric vehicles already in operation with its UK fleet as it attempts to reduce its carbon footprint, despite the higher cost of the battery-powered fleet.

Ian Wilson, operations director UK and Ireland at UPS, says: "The Modec going into the centre of London doesn't pay the Congestion Charge, so already there's an instant saving. The same goes for the road fund licence, so there's another saving there. There's an awful lot of financial  incentives behind that vehicle, so when you take those into account maybe it isn't as expensive as it initially seems.

"Yes, they're expensive when compared with an equivalent diesel-powered vehicle, but it is new technology and you have to see the benefits for what the benefits are."

Use of hybrid and zero-emission electric vehicles featured in the parcel firm's successful bid to become the official logistics and express delivery supporter of the London 2012 Olympics.

UPS has installed three charging points at one of its main centres in Kentish Town, north London. Wilson adds: "We're going to be investing more in electric vehicles. The trials have gone well since purchasing them and we haven't had any trouble. They require very little maintenance and up to now the range hasn't been a hindrance and they conduct their daily business and return to base for recharging for the next shift."

UPS was unwilling to say how much the Modecs had reduced its carbon  footprint by.