Demand for battery electric vans rose 21.4% in January, bucking the overall decline in the new van market.

Demand for battery-powered vans grew 21.4% with 647 units registered

A total of 647 eLCVs were registered last month, some 3.7% of the overall market, according to new data from the Society of Motor Manufacturers and Traders (SMMT). And while diesel still took a 94.3% market share, electric vans are expected to erode this further over the year as a result of key new model launches.

eLCV uptake is predicted to climb by 81.3% this year to 23,130 units, which would represent 6.4% of the market, compared with 3.6% or 12,759 units in 2021. Roughly one in 16 new vans will be fully electric in 2022 while eLCV registrations are predicted to rise a further 57.6% next year, to a market share of 9.4%.

Meryem Brassington, electrification propositions lead at Lex Autolease, said that while the electric vehicle industry had had every challenge thrown at it over the last 12 months, the figures reaffirm its robustness to keep up with the demands of motorists across the country.

She added: “As we accelerate towards the 2030 ICE ban deadline, government departments and industry bodies must continue to work together to ensure the UK remains the most attractive place for electric vehicle production. Recent manufacturer commitments from Jaguar Land Rover and Bentley, and the announcements of a battery recycling plant and Gigafactory by Britishvolt, have brought renewed impetus for the Road to Zero policy, helping to make certain that more vehicles on the roads are truly sustainable.”

The increase in eLCVs comes despite a fall in UK registrations of light commercial vehicles to 17,566 registrations. But while it was the weakest start to a year since 2013, the SMMT also stressed that January has historically been a volatile month due to the intermittent nature of fleet renewal.

The decline follows the best January for 31 years in 2021, when van registrations hit 24,029 units, up 2.0% even on a pre-pandemic January 2020, thanks to new models and latest deals.

Small vans, less than or equal to two tonnes, saw the biggest fall this January, with registrations more than halving (down 53.9%). Medium-sized vehicles over 2.5 tonnes, which represent two-thirds of the LCV market, fell by 29.8%. Pickup sales declined by 17.4%, but 4x4s recorded a 196.8% increase – although they remain a fractional segment.

The overall LCV sector is predicted to grow 2.0% overall in 2022, to 362,620 units; just shy of the 365,778 vehicles registered in 2019 and only 3.5% below the sector’s record year of 2016.

2023, meanwhile, is expected to continue this growth, with 387,420 registrations, overtaking 2019 and even 2016 volumes to set a new market record.

Mike Hawes, SMMT chief executive, said: “While chip shortages, rising inflation and increased energy costs will have an impact, growth is still anticipated given the inexorable rise of home deliveries and broader economic recovery. With more battery-powered vans coming to market, the demand for these new technologies seen in January is likely to continue across the year. With uptake rates still lagging the new car market, which has the same end of sale date, the importance of bringing every lever – purchase incentives, fiscal measures and recharging infrastructure investment – to bear on this critical sector is self-evident.”