Electric van demand plummeted last month despite a return to growth for the overall light commercial vehicle sector.

Electric van uptake declined for a fifth month this year

Latest Society of Motor Manufacturers and Traders (SMMT) figures show August battery electric van (BEV) registrations fell 30.3% year-on-year to 908 registered. It’s the third successive month of decline for BEVs this year and fifth time overall.

BEVs accounted for just 5.5% of all new vans in August, a fall from 7.9% in August 2023 and leaving serious concerns for automakers’ ZEV mandate targets.

Over the year-to-date, volumes have fallen by 9.5% and market share has declined to 5.1% – essentially half the 10% ZEV mandate target, despite increasing numbers of manufacturers introducing all-new zero emission vehicles to expand operator choice.

With concerns mounting over a possible return to a 2030 ICE van ban, the industry has highlighted the need to bolster confidence, continue fiscal support and advance availability of van-suitable charging.

Mike Hawes, SMMT chief executive, said: “Such a significant and sustained drop in demand for electric vans is of deep concern given the ambitious and mandated sales targets required this year and beyond. There is a pressing need to stimulate operator confidence which means providing long-term certainty over the Plug-in Van Grant, maintaining fiscal incentives, and accelerating the rollout of van-suitable charging infrastructure. Without these measures, the ability of the UK to meet its net zero goals while driving economic growth will be put under pressure.”

Sue Robinson, chief executive of the National Franchised Dealers Association (NFDA), warning that continued buyer uncertainty on heavier 4.25-tonne electric vans was impacting the EV switch, with ongoing concerns about the use of tachographs and the requirement for MOT testing in the first year.

“These issues need to be addressed to support the 4.25-tonne EV sector, as year-to-date registrations between 3.5-4.25 tonnes have dropped by 38.7%,” she stressed. “The previous government had promised to remove these barriers, which are limiting the adoption of electric LCVs due to the additional weight of their batteries.

“It is evident that the Labour government must take action to resolve these ongoing issues with electric vans and improve access to on-street charging for tradespeople and self-employed contractors. This is crucial to make the switch to battery electric vehicles a more viable option.”

And Matthew Davock, director of Manheim Commercial Vehicles, said: “The ZEV mandate will shape the remainder of this year, as the push to increase EV volume intensifies. It’s uncertain if demand will meet the established targets. The gap between legislative goals and consumer preferences is widening, yet the deadlines for adoption are fast approaching. We urge the Government to engage with the industry, recognise the impact of this tension, and back the automotive sector with incentives and a review of the mandate.”