The UK’s new van market experiences a remarkable surge, reaching a three-year high, yet significant challenges remain for electric vans.
- New battery electric van registrations increase by 62%, the first rise in five months, yet overall yearly demand drops by 1.9%.
- Battery electric vans only capture a 5.6% market share, falling short of the 15% target set for 2024 by the Zero Emission Vehicle Mandate.
- The Society of Motor Manufacturers and Traders (SMMT) emphasises the urgent need for more government support to bolster the electric van market.
- October sees an overall 2.4% growth in new light commercial vehicles, driven by demand for smaller vans, but large van registrations decline.
In the latest data from the Society of Motor Manufacturers and Traders, the UK’s new van market has surged to a three-year peak, with significant developments in electric vehicles. For the first time in five months, new registrations of battery electric vans have risen by 62%, amounting to 2,263 units. However, this marks a 1.9% decline over the year, indicating ongoing challenges in meeting ambitious environmental targets.
Electric vans currently represent just 5.6% of the market share, a figure that starkly contrasts with the Zero Emission Vehicle Mandate’s goal of a 15% share by 2024. This discrepancy highlights considerable obstacles in achieving greater adoption of electric vehicles among fleet operators.
The Society of Motor Manufacturers and Traders has reiterated its call for increased government intervention to support the transition to electric vans. While the extension of the Plug-in Van Grant into the coming financial year was welcomed, the SMMT warns that this measure alone is insufficient. The lack of dedicated charging infrastructure for vans is cited as a major barrier to broader adoption.
October witnessed a 2.4% growth in the registration of new light commercial vehicles, with a total of 26,974 vans, pickups, and 4x4s entering the market. This growth marks the third consecutive month of market expansion and the most successful October in three years. The surge was primarily fuelled by strong demand for small and medium-sized vans, which saw increases of 55.9% and 49.6%, respectively. However, despite these gains, registrations of large vans declined by 2.7% to 17,683 units, although they still make up 65.6% of the market.
The chief executive of the SMMT, Mike Hawes, expressed optimism regarding the growth in new van demand, noting its significance as a reflection of the health of British businesses. However, he cautioned that low demand for electric vans poses serious questions about the UK’s ability to hit its environmental goals. Hawes called for an urgent review of the market conditions, regulatory framework, and the support structures in place to prevent impacts on investment, economic growth, and decarbonisation efforts.
The UK’s van market is robust, but enhancing electric vehicle adoption remains a critical challenge.
